Keeping a high credit score can be awfully difficult these days. With so many credit card temptations, loans, and online purchasing availability, it is no wonder people run into credit trouble so quickly.
But, that shouldn’t stop you from living your life.
There are important things that you can do to help your credit score improve and purchase a car that would be beneficial to you.
Image Courtesy Of James Perez
Know Your Credit Score
Many people are worried that if they check their credit score, it will go down. There are plenty of options available to you where you can see your credit score without having the score be affected.
If you are thinking that you will be in the car market soon, try to take care of a few things beforehand, if you can, to help with your negotiating ability. Clean up any debt that you can and make sure that you are paying the minimum on cards, especially on time.
You want to keep your credit history looking decent for a few months before purchasing your car. Don’t be late with payments, don’t open up any new credit cards, and show that you’ve been frugal with your money.
Become Educated on What You Can Afford
When being in the market for the purchase of a new vehicle, you want to be educated on competitive prices and interest rates. You are going to probably struggle a bit as it is with a low credit score, so the more you can know ahead of time, the better.
You should be aware of the average loan rate and make sure that the car dealership doesn’t offer you double the interest rate. That will have a huge effect on your monthly car payments and initial purchase of the vehicle. You will, essentially, be putting yourself behind the 8 ball before even driving off the lot.
It is also a good idea to check out places such as universal car credit that have some programs in place to help you with your financial situations. Many people who go visit them are already in some debt, so their employees are well versed on ways to help you.
You also need to be smart on deciding whether to buy a used or new car. Read up on the pros and cons of busying used and new cars and how to buy a car with bad credit to weigh out what options will work best for you.
Make a Higher Down Payment
Because of the fact that you have a low credit score, it is going to affect your loan amount as well as your interest rate. If you have the ability to put down a little higher down payment it can help take care of the taxes, fees, and interest. This can also help you expand your options for what kind of vehicle you want.
Get Pre-Approved if You Can
Have a conversation with your bank or lender and see if you are able to get pre-approved for a loan amount. This will help you to stick within your budget and not sway outside of your affordable limits. If you are unable to get pre-approved, there is a good chance, especially if you visit car dealerships like the one mentioned above, the salesman can get you in touch with a lender.
Know Your Limits
In conclusion, there are definitely options out there for you to get a car to drive around in. You just need to know your limits and be sure you are not hurting yourself any more than you already are. Don’t go with a car with all the fancy extras that you don’t need and don’t let a salesperson talk you into a better car. They want their commission. Do what you can afford to do and you’ll be on the road in no time.