Can You Get On-The-Lot Auto Financing If You Have Poor Credit?

Many of us have been there. Our old, faithful car unexpectedly dies out and leaves us stranded with appointments and jobs to get to. The time comes when we have to decide – do we try and make do without our car, make a big fix, take our chances buying a car with the little savings we have, or apply for financing with a bank or car dealership? Quite a few people skip the last option out of the fear that they will be denied credit, and that the credit inquiry will impact their overall score. However, far more people take the gamble and end up wasting their money on junkers they find from private sellers online.

If you knew that there was a way to navigate these problems, would you try and avoid them altogether? If you answered yes to that question, then you should consider getting your next car from a buy here pay here lot. Not only are buy here pay here cars usually backed by warranties, but it is possible to get financing from these places regardless of your credit history. Auto Now of Independence is one of those places that offers financing options to customers who might have felt hopeless about their credit and car situations.

Understanding The Credit System

To realize why the credit system is so rough on some people, as well as to understand how we can offer on-the-lot financing to our customers, let’s take a closer look at credit and what makes up a credit score.

• Credit is a fancy term for debt. Credit companies collect this information from all your debtors and store it in their databases. This information also includes how much of your debts you have paid off, your rates of credit usage (if you have a card) and your number of on-time payments.
• Many large purchases require loans, and you must have a credit history to meet lending requirements. For those new to the world of credit, this often requires having a cosigner with a credit history vouching for your creditworthiness.
• To maintain an excellent credit score, you must have some form of debt. You can not have a single scrap of debt and have a 100% repayment history while also still having poor credit. Therefore, your credit score is not always an indication of how responsible you are with money.
• To improve your credit score, you must figure out the algorithm. There’s no single way to ensure you have a high credit score, and many credit customers are surprised by their scores. For instance,
  • Too many new credit accounts can hurt you. If you have a bunch of loans taken out within the past year, this can make your score lower.
  • Too many old credit accounts can hurt you. If you are still working on repaying credits for a “longer-than-normal” period, this can also hurt your score.
  • Owing too much on your credit accounts can hurt you. Credit card users with an excellent repayment history can also have poor credit scores because they have used more than 30% of their credit card allotment.
• Credit scores can fluctuate drastically based on a single mistake. That one payment you couldn’t make last month because you needed to eat? That could cost you, regardless of how good you’ve been with payments in the past or how good you continue to be.
• Unless you’ve figured out the sweet spot, you’re likely to have some credit issue at some point in your life.

What Needs to Happen to Build or Rebuild Credit

So, you’ve figured out that you need to rebuild your credit to get a car. How do you go about doing that? Here are some of the more common ways:

• You need to pay back a majority of your debt, but not all of it.
• You need to make more on-time payments.
• You might need to argue with credit agencies to get past offenses removed.
• If you have no credit, you’ll need to open up a few accounts.

Easier said than done, right?

In short, you can’t rebuild your credit overnight, which spells issues for those who need cash or a car fast. We’ll get into how on-the-lot financing can help your credit score relatively quickly, but for now, there’s one thing we want you to take away from this – you don’t need to have good credit to get a reliable used car. You can get on-the-lot auto financing regardless of your credit history.

What Does the On-the-Lot Financing Process Look Like?

Get the car you need today by applying for on-the-lot financing through a reputable dealership like Auto Now of Independence. The financing process is quick and easy. First, you do a little research on the types of cars you like. Be open during this process, as a used car dealership might not have everything you’re looking for. Next, apply online – all you’ll need is your driver’s license and a little bit of information about your income. When you’re approved, you’ll meet with a representative at Auto Now of Independence. They’ll help you pick out a car based on the amount you’ve been approved for, and then you’ll sign papers toward your ownership. Finally, you’ll drive away and make payments until you own the car outright. It’s that simple.

How Can Auto Now of Independence Help Me With My Credit?

As well as helping you find a reliable used car within your budget, buying a car from a buy here pay here dealership also enables you to rebuild your credit relatively quickly. Buy here pay here car payments are designed for the borrower to make the largest comfortable monthly payments to pay off the car in the quickest amount of time. This helps car owners get that much closer to outright ownership, save on interest rates, as well as rebuilding their credit quickly. Each on-time payment is reported to major credit bureaus, increasing your creditworthiness in a short period.

Let us help you with financing for your next car. Call Auto Now of Independence at (816) 833-6900 or visit our website to find out more about our store and vehicles.