The bad credit blues are real, and they’re all too common in today’s economic environment. In fact, research suggests that almost 70 percent of Americans have completely ruined their credit by their third decade. With the constant push for instant gratification, the urge to keep up with rapidly changing technology, and a myriad of social media outlets that make “keeping up with the Jones” a real issue, it’s not surprising that consumers use credit cards with reckless abandon.
For some, a simple mistake when it comes to finances can result in significant long-term repercussions. Once you’ve messed up your credit score, the climb back to financial health feels like an uphill battle. An area that’s dramatically impacted by ruined credit is the ability to obtain financing for big purchases like a home or car. In particular, the inability to get a car loan is one of the most hurtful because transportation is such a critical part of daily living. Most people in North Carolina have to have a vehicle to perform daily tasks like getting to work, running errands, and getting to the gym. With minimal public transportation available, having your own car is a must.
There is a way out!
While this situation is all too real for many Americans, there is hope around the corner. Bad credit doesn’t have to stop you from getting the car you’ve been eyeing. You may be a perfect candidate for a bad credit auto loan from a bad credit car dealership. You’ll be pleased to find that many of these dealerships offer flexible financing terms to people who could never obtain financing elsewhere. Financial mistakes cause many challenges, but it doesn’t have to completely ruin your ability to reach a few of your life’s goals.
Getting a bad credit auto loan isn’t as hard as you might think. Here’s what to expect when working with one of these dealerships and a few steps you can take to prepare ahead of time.
As with any financing institution, bad credit car financing requires some necessary paperwork. The dealership will likely ask for things like a recent pay stub and a utility bill, as well as current license and insurance information. If you’re not prepared to provide this information, you’ll be out before you get started. A bad credit car dealership may also ask for a few professional references as a testament to your character and trustworthiness. After all, the dealership is the one throwing the dice when it comes to offering you financing for a car. Coming in fully prepared stacks the odds in your favor from the start.
Before hitting the dealership, it’s a good idea to fully vet your credit score. Knowing where you stand and setting a goal for the future is a good task to complete before ever applying for bad credit car financing. Even if you know your score is damaged, it’s good to have a base for improvement. Detailing your credit report will also help you identify the fastest way to improve your score. Perhaps there are some quick fixes you can easily make before applying for a loan.
Once you’ve determined your credit score, make sure to ask the dealership if they report timely payments to the major credit agencies. This can help boost your score and start rebuilding your credit history. Many bad credit car dealerships do this; make sure you ask ahead of time to be sure the one you’ve chosen does this for its customers.
Understanding how loans work and which terms are most favorable will help you have a productive conversation with the finance team at the dealership. Doing a little research in advance will help you sort through the contract with confidence and help you feel informed and ready to walk away with your used car. Some loan terminology is difficult to grasp, but researching common financial terms like “annual percentage rate,” “interest rate,” and “loan life” are must-dos before ever setting foot in a bad credit car dealership. Doing your research will really pay off and will help you feel confident when discussing the loan.
Unlike traditional lenders like banks and credit unions, car dealerships offering bad credit auto loans tend to turn things around pretty quickly. They’re able to do this because they’re the ones making you the loan. This means they have more control over the entire process. They can streamline the process because they don’t have to get approval from anyone else to make the loan. If you have the proper documentation, they’ll work with you. In fact, you can often expect to walk away with your loan (and your new car) on the same day! These dealerships have a wealth of knowledge and experience when it comes to churning out loans, and you can expect they’ll have a team wholly committed to helping you with the best financing solution.
There’s no doubt that applying for a car loan with bad credit can be scary. The fear of rejection or the thought that you’re not getting a good deal is bound to cross your mind. But don’t let bad credit stop you from buying a car. AutoMax is a bad credit car financing dealership. We specialize in providing bad credit auto loans to customers in almost any financial situation. Our friendly financing team at AutoMax will work with you on a loan that fits your unique situation and results in monthly payments that you can afford. You’ll find AutoMax in both Henderson and Youngsville; we also serve the Raleigh and Durham metropolitan markets. Getting a loan with bad credit has never been easier! Stop in and check us out today.