Used Car Loans - A Credit Tool You May Not Have Known About

Sometimes through no fault of your own, you may have bad credit. The economy, a job loss, medical bills, or other factors could have contributed to your current financial situation. But just because you have bad credit now doesn't mean that it will always be this way.

You can take steps to improve your credit score almost immediately by making all your household bills and payments on time and in full. Another option to help improve your credit score is to get a used car loan. A used car loan can help rebuild your credit in several ways.

First, when you make timely monthly payments on your loan, it will reflect positively on your credit report. This will help to gradually improve your credit score over time.

In addition, the act of getting a loan and making payments on time can show creditors that you are responsible and capable of handling debt. This can make it easier for you to get approved for other types of loans in the future, such as a mortgage.

Of course, not all used car loans are the same. To maximize the positive impact on your credit score, you'll want to get a loan with reasonable terms. This means getting a loan with a manageable monthly payment that you can comfortably make without straining your budget.

You may also want to consider a cosigner for your loan. A cosigner is someone who agrees to be responsible for the loan payments if you default on the loan. Having a cosigner can help you get approved for a loan with more favorable terms, which can in turn have a positive impact on your credit score.

Although a used car loan can be a great way to rebuild your credit, it's important to remember that there is no quick fix when it comes to credit scores. It takes time and effort to improve your credit score, but the rewards can be well worth it in the end.

Used car loans can help rebuild your credit, but there are also some risks to consider. Your interest rate will likely be higher than someone with good credit. This is because you're considered a higher risk borrower.

You may have to put down a larger down payment than someone with good credit. This is because the lender wants to minimize their risk in case you default on the loan.

If you default on the loan, the lender can repossess the car. This will damage your credit even further. You should only take out a used car loan if you're confident you can make the payments on time. Otherwise, you could end up doing more harm than good to your credit score

Are you in the market for a car and am not sure what the next step is? Contact us either by phone or fill out a vehicle inquiry on the car you are interested in, we would be more than happy to help get you anyway we can.

How Much Car Can You Afford?

In order to find out how much you can afford, lenders will want to know your gross monthly income and your existing monthly debts. To calculate your maximum monthly debt, simply add up your monthly expenses including:

- Mortgage or rent payments

- Loan payments

- Credit card payments

- Childcare costs

- Alimony or child support payments

- Any other regular expenses

Find the Right Car

There are a lot of cars on the market today, which can make it difficult to narrow down your choices. For example, if you have a family or travel frequently with friends, you’re going to want a bigger car vs looking for a car just to commute back and forth to work. Another thing to consider is how much you’re willing to spend on gas each month.

Before you start shopping for a car, sit down and think about what you need:

- How many people will regularly ride with you?

- Do you drive long distances often or stick mainly to city streets?

- What style of car do you prefer? Are certain colors or brands more important to you than others?

- What kind of special features are must-haves for your ideal vehicle (e.g. heated seats, built in navigation)?

Once you have a good idea of the basics, it’s time to make a list of pros and cons for each candidate that fits your budget so that you can decide on the best option for YOU.

The Law of Supply & Demand

After you've chosen a few cars within your budget, it's time for some investigating. Initially, you'll want to find out if there are a lot of cars on the market for that make and model. The more common the car, you'll have more options to find one in your price range

Cars in high demand tend to cost more than those in low demand because there are more people looking to buy them.

If you've found the perfect car, it's now time to secure financing. We work with reputable lenders who will work hard to get you the best rates for your budget. they'll provide different payment options based on your down payment, income and credit score.

Are You Ready To Buy Your Next Car?

Follow the steps above and you'll be on your way to finding an affordable car that meets all of your needs. Don't forget, we're here to help you every step of the way. Contact us today and let us know how we can help you get behind the wheel of your dream car.