Bad Credit Car Loans
Getting a loan for a vehicle when your credit’s not good might seem like an uphill battle, but the experienced financing department at Balise Chevy Warwick will do everything possible to make it happen. Many people have found themselves with bad credit, yet plenty of them are able to get approved for loans by taking steps to improve their credit. We’ve outlined a list of frequently asked questions (FAQs) to help you understand a more about how credit scores are determined, why yours is important, and how you can begin the process of improving it.
How do I know if my credit score is considered poor?
Credit scores are three-digit numbers that range from 300 to 850. If your credit score falls within the 300 – 579 range, then it’s considered “poor.”
What is FICO?
FICO stands for Fair Isaac Corporation, the entity that for over 30 years has generated credit scoring on a basis that’s fair to both creditors and debtors. Your FICO score is your credit score: those three digits that help lenders determine how likely you are to repay your loan.
Will I be able to buy a car even if I have bad credit?
It will be a little more difficult, but not impossible. To get approved with a favorable interest rate, you should actively try to improve your credit score. Start by paying off as much debt as possible, and make sure you’re caught up on all of your bills. If you need a car right away and don’t have time to work on improving your score, there’s always the option of cosigning (which we’ll get into below). Once you get approved, keeping up with the monthly payments will quickly boost your credit score.
Where can I view my credit report?
Use one of the three nationwide credit reporting companies, which are Equifax, Experian, and TransUnion. You’re entitled to a free credit report from each of them once per year.
What should I do if I see an inaccuracy on my credit report?
Take up a dispute with the creditor in question, but be sure that you can show proof that you have in fact paid that debt. If you aren’t able to resolve the error directly, look into using an online dispute resolution service offered by the credit reporting agencies.
How does cosigning help me secure a loan?
When you cosign on a loan with someone who has good credit, your chance of approval increases because the lender now has two people to rely on. Not everyone is eager to become a cosigner, though, since it puts them at risk through a legally binding contract where they agree to be responsible for any payments you fail to make.
What happens to my credit score if I miss a payment?
Missing even a single payment can cause your credit score to drop. If you make payments on time, though, the opposite is true. A sound payment history will raise your score steadily over time.