Bad Credit Car Loans in Springfield, MA
Being saddled with a low credit score is not the end of the world, even when you need to replace a vehicle that’s no longer reliable. The financing team at Balise Chevrolet of Warwick is here to help. We work with quite a few different lenders who offer solutions for buyers with credit challenges, and chances are you’ll qualify for one. The best part is that once you’re approved and making every payment on time, your credit score will steadily improve (as long as you keep up with all of your other bills, too, and don’t add more debt).
Since you’re reading this page about auto loans for people with credit challenges, you likely have a credit score that’s under 700, meaning you fall into either the fair or poor category. Individual lenders set their own limits as to what score range they’re willing to work with, but there are definitely a few that cater to buyers with poor credit ratings. If you can put off buying a vehicle for a few months, use that time to aggressively pay down other debt and/or save more so that you can make a larger down payment.
There are a few things you should do before you apply for automobile financing. First, get a copy of your credit report from at least one of the three national credit bureaus (Experian, EquiFax, and TransUnion). You’re entitled to a copy from each, once per year. Look over your credit report for any errors, especially accounts listed as unpaid that you are certain you have settled. If you find an error, gather your proof that it’s been paid off, and contact the creditor. As long as errors like that appear on your credit report, they’re keeping your score down and hurting your chances of getting the loan that you need.
Next, make a budget that includes all of your monthly expenses. Make sure to budget in a modest amount for recreational costs, an occasional night out, and so on. It’s also a fantastic idea to budget an amount to put into separate savings and emergency fund accounts each month. Using the amount of income that’s left after you subtract expenses and savings, figure out how much you can comfortably spend on a car payment. It’s really important to be realistic about what you can afford, while keeping in mind that financial emergencies are an expected part of life that you need to be prepared for. Remember that you’ll be paying principal (the sticker price of the vehicle) plus interest (which may be higher if you need a bad-credit loan) for as long as 72 months, depending on your loan terms, so think of that total cost, not just the initial price. The last thing you want to do is get into a purchase that you can’t afford, which could lead to a devastating repossession.
When you’ve chosen the vehicle model, resist the temptation to add options or choose a trim level that’s more than you actually need. We all “want” bells and whistles, but you only “need” dependable transportation at the moment. You can always upgrade your vehicle in the future, when you’re on better financial footing.
Common Credit Issues
It’s no secret that bad credit can leave those afflicted feeling depressed and insecure, but the solution for breaking free from its unforgiving grasp might be right under you nose. At Balise Hyundai, our finance department knows a thing or two about bad credit. We see it among our customers all the time, and we’ve been able to help many of them escape from it with the help of an auto loan. You might be asking yourself: how I can begin to think about securing an auto loan with such abysmal credit, and why would it even be worth it?
To answer the first question, our skilled finance department can assist you in finding an auto loan that works for your unique situation. For the second, consistent payments on said auto loan will do wonders in bringing your credit back up to par. So, think you’re ready to make the first step toward a brighter future where you’re no longer burdened by poor credit? Then pay a visit to our finance team at Balise Hyundai today!
What Are Some Causes of Bad Credit?
In short, lots of things. Missed payments, foreclosure, divorce, you name it. So many things in life can cause it to rear its ugly head, and it can happen to anyone, at any time, no matter how diligent they are with their finances. Below we’ll cover some of the most common reasons people suffer from bad credit, and how we go about helping those people out.
Losing One’s Home to Foreclosure
Losing one’s home to foreclosure can impact all areas of life, including your credit. With that said, our expert financial team at Balise Hyundai may have a solution to help you break free from the burdens of bad credit with the help of a manageable auto loan.
Missing or Forgetting to Make Payments
This is one of the main culprits of bad credit. When you miss payments on your loan, you’re essentially showing lenders that you’re an irresponsible borrower. Sometimes, people just have a difficult time managing their payments. If you’re looking for some actionable solutions to better organize your finances, then visit Balise Hyundai today so we can show you some ways to make sure your payments are made on time and in full.
Going Through a Divorce
Much like with foreclosure, a divorce will uproot nearly every aspect of your life. To get you going in the right direction, let us show you how an auto loan might be able to reboot your credit situation.
Filing For Bankruptcy
For some people, bankruptcy is unavoidable. While it will relinquish you of all debts, it will absolutely tank your credit. To get it back up to a respectable level, schedule an appointment with our finance department ASAP. They can show you some options to help you move forward.
Buyers With No Credit
All of us have to start somewhere, and building credit is something that takes time. If you’re a first-time car buyer with no line of credit but still need a car, we might be able to assist you.