It can be almost impossible to get preapproved for a car loan when you have a bad credit. That’s because lenders and financial institutions are also protecting their interest. They don’t want to invest their money in a credit that has a high risk of default. How a Bad Credit Car Dealership Can Help
If your low credit score is preventing you from getting the best deal on a car loan, you still have one more (and probably the last) option—to go to a bad credit car dealership. This is a type of dealership that offers financing to buyers, specifically to those who failed to obtain preapproval. Just because you have this option, however, doesn’t mean you’ll let your credit rating continue to dwindle. You have to do something to get back on track. Take note that your credit score will affect not just your ability to take out an auto loan but also other major financial transactions you’ll make down the road, so you have to reinstate your creditworthiness. Repairing Your Damaged Credit Score Here are some tips that can help you repair you credit score: Gather the Facts. When it comes to your creditworthiness, it’s ill-advised to base your decisions entirely on presumption. Don’t just assume that your score might possibly be low because you’ve been behind on your bills and other loan payments. You have to know for sure the impact your setbacks had made on your credit. There’s no place better to get this information from than the major credit bureaus—TransUnion, Equifax, and Experian. They usually give a free credit report, which reveals your credit history and the rating it amounts to. This report, however, is not always accurate. Sometimes, it contains errors that can have a detrimental effect on your rating. So as you try to collect the report, also check for errors that might be inappropriately dragging your rating down. Start Paying Off Your Remaining Debts. With all the information you’ve obtained from the credit report, make a list of all of your accounts and check recent statements to determine how much you owe on each account. Also check the interest you’re being charged with. Create a payment strategy that prioritizes debts with the highest interest, but also make sure to maintain minimum payments on your other accounts to pay off everything within a predetermined timeframe. Doing these will not only increase your chance at recovering from the financial downturn you’re currently going through, but it will also provide access to more financing opportunities. In fact, it would help to get these tasks done even before you head to a car dealership to take out bad credit auto loans. This way you can prove at the very least that you’re doing your best to make your financial situation better. This proactive approach can also serve as a guarantee for the car dealership that you will indeed comply with the conditions of your contract. In effect, you’ll make your car purchase even smoother. About McLoughlin Chevy: As your total automotive resource in Oregon, Mcloughlin Chevy works hard to provide the most recent Chevrolet models and world-class car services. We also offer GM certified used vehicles, parts, and accessories. Whether you’re eyeing out for the new Chevy model lineup or get the most desirable value for your trade, we’ve got you covered. Are you having difficulty getting pre-approved for a loan? Not a problem, because we offer bad credit auto loans as well. Sources: How To Catch Up on Late Payments, thebalance.com How to repair my credit and improve my FICO Scores, myfico.com
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Responsible and hardworking adults always dread the words “bad credit score” because it sounds very ominous. Having a bad credit score can affect many financial opportunities in the future, and that makes it intimidating. A common misconception of most people is that bad credit auto loans are always rejected, which hurts their current credit scores even more, so they are reluctant to try. That is a myth because there are several ways to get an auto loan, even with bad credit. If you are in need of a new vehicle, but your credit report isn’t looking good, here’s what you can do to increase the chances for approval: 1. Loan through a Car Dealership There are two ways to get access to an auto loan. One is through financial institutions like banks and credit unions. This option often entails a lot of paperwork and credit checks that can impede your chances of getting an approval. Another way is to apply for a loan using a trusted car dealership in Portland. Car dealerships are more lenient with their requirements and sometimes offer better deals for customers with bad credit. 2. Down Payment Plus Vehicle Trading A great way to reduce the amount of the principal loan for a new vehicle is to offer a down payment in cash and also trade in your current car, if you have one. This will also reinforce your commitment to making a deal that earns you plus points from the point of view of the car dealership. 3. Have a Co-Signer Having bad credit or worse no credit at all can make an auto loan difficult, even when you’re already working with a car dealership. Sometimes there is no time to work on improving current credit scores, especially when you are in dire need of a new car. However, you can always find someone you trust who has good credit to co-sign for the loan. This will increase your chances of getting the auto loan approved significantly. 4. Choose a Vehicle Early A great way to increase your chance at loan approval even with bad credit is to choose a vehicle before approaching a dealership. How can this help? A car dealership or any lender can perform a pre-qualification check on your credit. You will have a breakdown on the loan terms to see if you can afford it. Best of all, a pre-qualification check will not harm your credit score. 5. Work on Improving Your Credit Score Sometimes no matter what steps you take, your bad credit will put a damper on the loan approval. This is why getting your credit report early and doing your best to improve the score before applying for a loan is a practical step. Simple things like paying off credit card bills on time will bring up your scores. About McLoughlin Chevrolet: The financing department of McLoughlin Chevrolet is ready to help you get closer to owning your dream car. As one of the highest rated car dealerships in Portland, McLoughlin Chevrolet has all the resources ready to assist you in securing an auto loan. There’s no need to stress about bad credit when you’ve got the help of one of the most competitive bad credit car dealerships in the country. “CHANGING THE PERCEPTION OF THE CAR BUSINESS, ONE CUSTOMER AT A TIME” – YEON KIM (Sales Manager at Mcloughlin Chevrolet) Sources: Bad Credit Auto Financing, RoadLoans.com 3 Best Second-Chance Car Loans for Bad Credit (2018), BadCredit.org |
about usMcLoughlin Chevrolet is your number one Chevy dealer serving Portland, Oregon and nearby areas. We have the widest array of vehicles available, so whether you’re looking for new or used cars, electric cars, trucks, SUVs, and more, we have them. We even have the parts and service to help keep your Chevy in tiptop shape. Our flexible financing schemes ensure that you get to drive home the car of your dreams, regardless of your financial standing. What more can you ask for? Feel free to use our online search tools to find the car you want, then drop by our location to test drive the car and seal the deal. Archives
November 2018
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