How to Get a Car Loan with Bad Credit - A Guide from AutoFair Ford |
Posted: April 4, 2023 |
If you have bad credit, you may think that getting a car loan is impossible. But that’s not necessarily the case. AutoFair Ford in Manchester understands that everyone deserves the opportunity to purchase a reliable vehicle, regardless of their credit score. Here’s a guide on how to get a car loan with bad credit from AutoFair Ford. Check Your Credit ScoreThe first step in getting a car loan with bad credit is to check your credit score. You can get a free copy of your credit report from the major credit bureaus, including Equifax, Experian, and TransUnion. Review your credit report for errors or inaccuracies that could be hurting your score. If you find any errors, you can dispute them with the credit bureau to have them corrected. This can lead to your credit score improving significantly in a relatively short period of time, and with the least amount of effort. Consider a Co-SignerIf you have bad credit, having a co-signer on your car loan can help you get approved for a loan. A co-signer is someone who has good credit and agrees to take responsibility for the loan if you are unable to make the payments. Before asking someone to be your co-signer, make sure they understand their responsibilities and the potential consequences if you default on the loan. Shop Around for RatesDifferent lenders may offer different interest rates for car loans, so it’s important to shop around and compare rates from multiple lenders. You can check with local banks and credit unions, as well as online lenders and auto dealerships like AutoFair Ford. We also work with a number of banks and credit unions, plus Ford Motor Credit, and will be happy to assist you in finding the best terms possible. When comparing rates, make sure you’re comparing rates for the same loan terms and down payment amounts to get an accurate comparison. Choose a Reliable VehicleWhen you have bad credit, you may be tempted to choose a cheaper, older vehicle to keep your monthly payments low. However, it’s important to choose a reliable vehicle that won’t break down and require costly repairs. At AutoFair Ford, we offer a wide selection of new and used vehicles that have been inspected and certified by our team of technicians. We also offer warranties and maintenance plans to help you keep your vehicle in top condition. Make a Larger Down PaymentMaking a larger down payment on your vehicle can help you qualify for bad credit car loans. This is because the lender is assuming less risk when you have more equity in the vehicle. A larger down payment can also help you avoid negative equity, which occurs when you owe more on the vehicle than it’s worth. Conclusion At AutoFair Ford in Manchester, we believe that bad credit should not stop you from purchasing a reliable vehicle. By checking your credit score, considering a co-signer, shopping around for rates, choosing a reliable vehicle, and making a larger down payment, you can increase your chances of getting approved for a car loan with bad credit. Contact us today to learn more about our financing options and how we can help you get behind the wheel of a vehicle you can count on, even with bad credit.
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