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.