You need a better vehicle but your credit score is not good. You may lament that you’ll never get financed. Is that true? Not necessarily. There are finance companies for all credit scores. You may not get the 0% rate you see advertised, few people do. But there are possibilities.
If you go to a dealership and buy a car with an 18% to 24% interest rate loan, there are things you can do to increase the possibility of getting a lower rate next time. High interest rates do not have to be permanent. Here are a few things you can do:
1. Pay your loan and all your other loans on time. This will give you positive points for your credit score.
2. Pay down credit cards. The credit rating system computes a lower score if your credit cards are “almost full”. You get a higher score if the balances of your credit cards are less than 50% of the available credit line. If you pay them off, leave them open. You actually get penalized by closing out lines of credit.
3. Pay off any collections. You may have many so you may have to start with the little ones. Paying off old debts show the banks that you are a stand-up person and you will take care of your obligations.
4. Save up for a down payment. The banks are more willing to put their money at risk if you are willing to put your money at risk.
These are a few things you can do. As always, results may vary. Please consult your financial advisor on your specific situation.
Financing a used car does not have to be a headache. Sure, there will be hoops to jump through but if you are prepared, you can be an Olympic athlete. Each bank and finance company has their own requirements so we will give you a list of things to bring to make the experience go smoother. You may say “Why do I have to bring that?” It is as simple as it is the bank’s policy. They who have the gold make the rules so if you want to borrower their money, you have to go by their rules. Here is what you should bring:
*Your driver’s license
*Your social security card
*Your last two paystubs
*Your landlord’s name, address and phone number
*The phone number of the personnel department of your workplace
*The name, address and phone number of your closest living relative
*The name, address and phone numbers of five references
Some banks will want all of this, some won’t. But by bringing these things, you make it easier to get a good quality used car or truck.
Here are a few other things you can do before you apply:
*Pay down your credit cards. The less you owe, the better your chances are.
*Be ready to explain any employment changes.
*Have a downpayment. You want a bank to put their money on the line, show them you are ready to put yours on the line.
*Have your insurance information ready. You cannot drive out without insurance so be ready to switch it to your new vehicle. Better yet, talk to your agent beforehand so you know how much it will cost.
These should give you a good start down the road to a used car or truck. If you have any questions, feel free to stop by any of our Northpointe Motors locations in Gaylord, Kalkaska, Traverse City or Cadillac. We are always here to help.
Welcome to Northpointe Motors. We are an independent used car dealer with showrooms in Cadillac, Traverse City, Kalkaska and Gaylord. You may say there are dozens of used car dealers in Northern Michigan and ask what is different about Northpointe Motors? Here it is, we care. Of course we want to sell cars, if we didn’t, the doors wouldn’t be open and twenty-some people would be out of work. We want to sell them the right way. No pressure. No bait and switch. No rolling thousands of dollars from your old car onto your new car.
We also have put together programs to help those with credit problems get a good used car. Will it be a Lamborghini? Of course not. But it will be one that will get you back and forth to work and your kids to school. As we all know, it is almost impossible to live in Northern Michigan without a car or truck. And for those with credit problems, we push for shorter loans, not 5 or 6 years. After all, the goal is to help you get a good loan on your credit report and get your credit score higher; within 18 to 36 months. Then you can get the Lamborghini.
Come check out the Northpointe difference. We are open 6 days a week and 24 hours a day on the web.