Obtaining a loan is considered a necessary evil by some, but it’s a critical need when planning for your future. From buying a new home to purchasing a new car, reliable credit is an essential component of achieving many common life goals. Data suggests that many Americans find themselves with a poor credit score by age 30. Your financial health and viability are dependent upon responsible spending and building good credit as lenders review your credit score prior to any approval.
One reason so many people find themselves with bad or poor credit is the general lack of knowledge surrounding how credit works. Your credit score provides an indicator to lenders of how reliable and trustworthy you are as a consumer. In the United States, the Fair Isaac Corporation (FICO) calculates credit scores using several popular indexes. Your credit score is calculated based on several factors, including payment history, total debt, and new credit inquiries.
Missed payments, application for a new credit card, having a high debt to credit available ratio, and closing an account can negatively impact your credit score. These are things you don't often think about until you have an emergency and it’s time to apply for a loan.
You hear the terminology all the time: What’s your FICO score? Do you have bad credit? I have a credit score of 800! So what does all this mumbo-jumbo mean? FICO scores range anywhere from 350-850. Here’s what they mean to you:
Having bad credit can come with a variety of uncomfortable challenges. You may experience issues getting financed for primary goals like buying a home or refinancing a current loan. These challenges can be especially painful when you need to buy things required for day-to-day life.
Think about this scenario: Your car breaks down, and it’s just as expensive to repair it as to buy a new one. However, you’re strapped for cash and need to get a loan to make this purchase. Looking at your credit score, this situation becomes all the more daunting. Luckily, a bad credit car dealership may be able to lend a hand. Also known as a buy here pay here dealership, it can offer in-house loans at special financing rates and terms that may help you while you’re in a pickle.
While poor credit can seem like an almost impossible hole to escape, there is good news on the horizon! Bad credit car financing is a real thing offered by a buy here pay here dealership. In fact, a bad credit car dealership can actually benefit you as you begin the credit repair process. Here are a few of the many advantages of this type of buy here pay here dealership:
Don’t! If you’re still worried about the loan approval process, give our team at AutoMax a call. We are a bad credit car dealership that’s here to help, offering great loan terms for consumers in a tight situation. With locations in Henderson and Youngsville, NC, we are also conveniently located near the Raleigh-Durham area, as well as other major North Carolina metro areas. It’s time to get on the road in your new dream car. Let AutoMax help!