Even If You Have A Low Credit Score, You Can Still Count on Balise Kia to Help You Get an Auto Loan.
A car is a necessity for most of us, especially those who need to get to work to earn a living. But for one reason or another – people can end up with a lower credit score than they’d like. Or, you may simply not have established credit yet because you’re young or just haven’t needed to apply for any kind of loan to this point. If you’ve tried to get approved for a vehicle loan but were rejected, there’s no reason to give up. There are lenders out there with the flexibility to work with people who have credit challenges by offering what’s called a subprime loan. The financing team at Balise Kia can help to connect you to these more accommodating lenders.
We hear a lot of questions from people who are concerned about having a low credit score, mostly along the lines of how it can affect their chances of being approved and what they can do to improve it. Here are some answers to the ones we hear most frequently about bad credit auto loans.
Why do We Want to Help Customers with Low Credit get a Car Loan?
We understand that no one is perfect; maybe you’re new to loans and you don’t have any credit yet or maybe past circumstances have affected your current score. Whatever the situation may be, we don’t think that should disqualify you from getting a safe and reliable vehicle. Instead of penalizing you for your credit score, we want to help you by offering a financing solution that works for you. We offer reasonable financing terms with payment amounts that work for you.
With our terms, you’ll not only be able to get behind the wheel of a great new car, but you’ll also get a chance to rebuild your credit. Getting an auto loan and making the payments on time can boost your score and make a good impression for any loans you might need in the future.
I need to improve my credit. Where do I begin? Begin by paying any and all bills on time, paying off any outstanding debts, and keeping balances low on credit cards and other revolving credit. Resist opening any new credit that you don’t absolutely need (a car loan is an example of necessary credit, while a new credit card for a department store is not). Doing these things will boost your credit steadily over time.
Is it possible to get a car loan if I have a low credit score? Yes. We can help you get the loan you need, no matter what your credit looks like.
Will buying a car harm my credit? No. Being approved for a loan and then making your payments on time can actually improve your credit score.
Since I have low credit, will my interest rate be higher? Not necessarily. In our finance center, we work with a number of banks and credit unions to make sure you get the best rate possible.
Can I get pre-approved even if I have not bought a vehicle before? We have experience working with first-time buyers, so we can try to help you get approved and then find the solution that’s right for you.
How much should I put towards a down payment?It is generally recommended that borrowers put down 20 percent, but a larger down payment will go a long way to lowering your monthly payments because you’ll be borrowing less and you will likely get a lower interest rate. If 20% is too much, try to get as close as possible: your chances at securing a lower interest rate will be better if you’re borrowing less. You may get approved for a loan that doesn’t require a down payment, but you can expect a higher interest rate. Keep in mind that you can refinance to a lower interest rate down the road after you work to improve your overall financial situation (including your credit score).
How can I keep up with monthly payments once I’m approved? The first step is to buy only what you can afford, keeping your payments as low as possible. The goal at this point is to get yourself reliable transportation: your dream car can wait until times are better. The best way to keep track of your expenses is to budget realistically. Through a simple Internet search, you can find plenty of free resources to help you establish a budget. You should also set up direct withdrawal for your payments so that it can’t slip your mind to make them each month (some subprime lenders will even require this in their contract terms).