Bad Credit Car Loans
Even if You Have a Challenged Credit History, Balise Hyundai of Cape Cod Can Help Secure Financing for Your Next Car
Are you on the hunt for a new vehicle? If so, we suggest shopping the selection here at Balise Hyundai of Cape Cod, even if you’re someone who suffers from bad credit. Our experienced financing department will work hard to find a solution that allows you to drive home in a new car. They’ll also show you some ways to improve your credit and bring up your credit score. Seeing as having poor credit is such a common issue for many Americans, we field a lot of questions on the subject. To make your life easier, we’ve compiled a list of some of the most frequently asked questions concerning bad credit car loans. The answers should clarify some of your own concerns and get you on the right track to improving your credit, but don’t hesitate to get in touch with us if you still need answers.
What is considered bad credit?
If your credit score falls below 579, it’s in the poor category. There are many lenders that will not consider an applicant whose score is this low, but we have established business relationships with lenders who have options for borrowers in this category.
Where can I access my credit report?
Equifax, Experian, and TransUnion offer free credit reports, and you may get a report from each of them once per calendar year.
What is a FICO score?
Your FICO score is simply your credit score, a three-digit number that ranges from 300 to 850. FICO (Fair Isaac Corporation) makes credit scoring uniform so that it’s fair for all consumers. This scoring helps lenders determine if you’re a responsible borrower.
How can I improve my credit?
Start by paying all of your bills on time and paying off any outstanding debts you might have. Resist opening any new credit, unless it’s something you absolutely need (such as a car to get to work, school, etc.).
What is interest?
Interest is money paid to your lender at a particular rate for the use of money that’s been lent to you. Essentially, it’s the cost of borrowing money.
How much does my credit score impact my interest rate?
If you have a low credit score, it can cause your interest rate to be significantly higher than it would be if you had good credit. This is because good credit shows you’re a reliable borrower, so lenders take less risk when they work with you and you’re rewarded with a favorable interest rate.
What does it mean to default on a loan?
When you default on a loan, you have failed to pay back your lender as per the initial agreement. Any loan you enter into is a legally binding contract, and the consequences for not paying under the terms of that agreement can be quite serious.
Should I find a cosigner?
This can be a great idea if a person you’re very close to has good credit, since it improves your odds of being approved for a loan. Keep in mind that not everyone likes to be a cosigner because it puts their own finances at risk: they’re responsible for any payments that you default on.
How can I keep track of my expenses?
The best way to keep track of your spending is to create a budget. There are plenty of useful online resources and free apps to use that can help get you started.
How does missing a payment influence my credit?
Missing even a single payment can cause your credit score to drop, so you must make sure you have enough money set aside to meet the monthly payments.