So, you need to buy a car but don’t have the best credit. It happens to the best of us. Not everyone has the perfect credit all the time because life happens and you can’t always plan for it. But having a car is important especially when you need it.
How do you buy a car with bad credit?
Work on your credit before going car shopping
Check your credit report and work on things such as paying off past-due accounts, disputing credit report errors, and adding positive information to your credit report. The smallest thing can change your credit score. Also, the more time you have to change your score, the better it will get. If you don’t have much time, focus on the things that are bringing your score down before adding anything.
Be aware of your Credit Score
Follow your score as you work on fixing it. Have a specific score in mind that you want to achieve before starting to look for a car. Remember, the lower the score, the higher the interest rate. That means the more you’ll be paying for whatever you want.
Once you get to the score you’d like, get pre-approved so you don’t have to wait for numbers when you find the car you want. Most dealerships have financing and you can apply on the website. You can also look through your bank or anywhere else you’d like to apply.
Choose the shortest loan you can afford
Yes, everyone loves low payments but spreading the payments out to 72 months isn’t helping you pay off the car faster. If the payment is $300 for a 60-month payment, can you afford an extra $75 a month to bring the number of payments down to 48? It is definitely something to think about.
Try to find the car you want at the dealer’s website first
Searching the website to find your new car makes the trip of running from dealer to dealer much easier on you. Plus, you’ll make sure you get what you want instead what they have sitting on the lot.
Do this for yourself but also do it for your future. Buying the car will also help build your credit. Once you buy the car, make your payments on time and continue to make updates to your credit to bring your credit score up.