Bad Credit Car Loans in Springfield
A little understanding can be huge in life, which is why there are lenders who have special loan programs for people with credit challenges. Bad credit can come about for various reasons, and the good news is that it’s temporary if you work to correct it. Lenders who are willing to help car buyers through difficult times can make all the difference for somebody who needs a vehicle to get to work and other crucial places. Balise Nissan of West Springfield has established relationships with lenders like this, and our financing specialists are here to work with you to get you approved if you’ve faced rejection elsewhere.
If you haven’t pulled your credit report yet, that’s the first step you should take. Once per year, everybody is entitled to a free copy of their credit report from each of the three major credit reporting services: Equifax, Experian, and TransUnion. Throughout the year, you should also keep an eye on your overall credit score from each of these bureaus. Your score is determined by factors such as your amount of available credit, the percentage of available credit you’re using at the moment, and your overall payment history: on-time payments help your score, but missed and late payments hurt it. Each bureau has its own structure of criteria for determining credit score, so it’s normal to see a variation in your score across the three.
Your credit score will be a three-digit number ranging between 300 and 850; the higher the score, the better. While the basic categories of Poor, Fair, Good, Very Good, and Excellent also have individual guidelines for each bureau, in general a score below 600 is poor. But just as the three credit bureaus have their own structure, so does each lender. This means that one lender may consider 650 or even 699 as the cutoff score to define the line between needing a special loan program for bad credit or not.
Repairing Your Credit
If you spot any discrepancies on your credit report, such as payments you’ve made that are reported as delinquent, get on the phone with that creditor right away and have proof on hand that you made that payment. If you can resolve that matter as paid in full, the creditor should work to get it removed from your report.
You can – and should – take action to raise your credit score. Just by making on-time payments and not opening any new credit lines (except for the auto loan that you truly need), you will see your score gradually rise. You don’t want to close any existing lines that you have, though, because that will lower your amount of available credit and raise the percentage of credit you’re using, which will in turn raise your score. Just keep those accounts open and do not charge any more to them. You should also work hard to pay off as much existing debt as you can – before you apply for financing, if possible. That effort, along with saving as much as you can for a down payment, will make it easier for you to get approved for a loan with an interest rate you can live with.