How to Find an Affordable Car If You Have Poor Credit

Poor credit doesn’t have to stand in the way of you getting a car. If you live near Belton, there are options such as Buy Here Pay Here dealerships and dealerships that offer poor credit car financing. If you have bad or poor credit, prepare to shop a little differently for a car and you may have to pay a slightly higher interest rate on any loan. Apart from that, you’ll be able to get a car with poor credit in Belton if you’re earning a wage, enough to show you’ll be able to repay a loan.

Try to Improve Your Credit

Why is your credit rating important? Traditional car financing mostly works by checking your current credit rating, your current salary, and other factors. The biggest impediment for those who have had a bad time with credit in the past is their credit score. If you don’t have a good credit score, you’re unlikely to get very far at a bank no matter how long you’ve been with the bank.

If you don’t need a car immediately, you could first try to improve your credit score so you have more options from which to choose.

The first step is to check your credit report to see where you stand and whether there are any errors. If there are any past-due accounts on your credit report, you could attempt to pay them off first and get these black marks removed from your credit report. It’s sometimes the case that a lender will forget to update the credit reporting agencies when you’ve repaid a loan, so you may need to chase them up to get this fixed.

Unfortunately, this all takes time, so if you need a car sometime this year you’ll be better off looking for poor credit car financing in Belton.

Understand Interest Rates

Why is understanding interest rates important? If you have a good credit score, you’ll be able to get a lower rate of interest on a loan. For short-term loans, this may not make a large amount of difference to the total amount you ultimately pay, but for long-term loans over a number of years, the interest rate can make a huge difference to the amount you’re paying.

If you have poorer credit, you can expect to pay a higher interest rate. Because people who have had problems with credit in the past are more likely to have problems in the future, the lender must adjust the interest rate to account for the additional risk. Some banks will take advantage of the fact you need a loan and ramp the prices up. This is another reason that a dedicated Buy Here Pay Here dealer that specializes in poor credit auto financing is likely to be your best option.

Compare the interest rates you’re offered from all of the lenders in your area. Consider exactly how much you’ll pay over the entire length of the loan. A low-interest rate can end up costing you more if you take out a loan over a long period and only repay the minimum each month. A short-term loan with a higher interest rate might stretch your budget more now but you may be paying less in the end. Of course, you must also ensure you have enough to spare that should anything go wrong you’ll still be able to make the repayments on the loan.

Can You Make a Bigger Down Payment?

You can buy cars with poor credit in Belton, MO, as Buy Here Pay Here dealer Auto Now doesn’t perform a credit check to loan you the money. If you’re earning over $1,200 per month after taxes, you’ll be eligible for a loan.

If you have some money stored away or you can trade-in your current vehicle, you can reduce the cost of the loan. Paying a larger down payment means the amount that you borrow will be less, so the interest payment will also be lower. It always pays to make a bigger down payment if you can sensibly afford it.

Making a bigger down payment can also mean you can afford a more expensive vehicle. Perhaps you have an eye on a 2017 Ford F-150 or a similar vehicle that’s almost as good as new. Making a bigger down payment, paired with the amount you’re able to borrow, can get you into the vehicle of your dreams even when it seemed out of reach.

What Is the Buy Here Pay Here Buying Process?

As you’re looking to forego the banks, getting a loan from the dealership you buy from is the right choice when your credit rating is poor. You can apply for bad credit car financing online at Auto Now, or drop in at one of the six locations across Missouri and Kansas.

The dealership will confirm your ID, driver’s license, and proof of income. You’ll be advised how much you can borrow, and this informs the vehicles on the used car lots you’ll be able to buy. You can browse these vehicles at your leisure on the dealership website.

From there, you can take a test drive of multiple vehicles and see which is the car for you. You’ll make a down payment before you can drive away, but this can be as little as $99.

The repayments of your loan will go directly to the dealership. You can make payments online, in person, or even have the payments taken automatically from your credit card or bank on a monthly basis.

An affordable car is not out of reach if you have poor credit. Choose a Buy Here Pay Here dealer in Belton and the process is greatly simplified. Auto Now doesn’t perform credit checks, so credit problems of the past don’t matter here. The great range of vehicles and benefits you get are other reasons to choose Auto Now in Belton, your trusted poor credit financing dealership.