There are many reasons that people struggle with their credit score. Poor credit can be the result of financial difficulties, divorce, career change and a number of other changes to your life. The good news is that your credit score can be repaired. It will take time, a little elbow grease and reliable lender but securing an auto loan is a great way to show you are capable of making monthly payments. Making regular monthly payments to a lender who reports to the credit bureau helps re-establish a good credit rating. This can mean paying monthly bills such as credit cards, phone bills, and yes, even car loans. Having no credit doesn’t mean you can’t get a car loan, simply follow our steps to building good credit and you’ll be driving your new car home in no time.
How to Rebuild Your Bad Credit With a Car Loan
Step One: Get Real
Make an honest assessment of what you need and whether or not you’re able to afford it. Getting a car loan with bad credit means that you will likely have a higher interest rate, you may have to put money down up front and you will likely have to choose a used, less expensive vehicle. It may not be the brand new car you imagined yourself in but if you take the time to rebuild your credit, you can always upgrade in the future.
Step Two: Budget
Go over your financials and take note of how much you have to spend on your new vehicle. If you want your car loan to lead you to better credit, you must be able to make the monthly payments on time and in full. It is the act of showing creditors how reliable you can be that rebuilds your credit score. Setting a realistic budget is a big step towards completing that.
Step Three: Talk to Your Dealer
Look for vehicles within your budget but are still high quality. A costly repair could set your financial goals back. Reputable dealers like McLachlan can help you find the best used-cars under $10,000. Choosing an affordable vehicle will not only make your monthly payments more affordable, it will also increase your chances of approval. Come onto the lot with your budget and your expectations and let a trusted sales representative help you find your car, truck or SUV.
Raising your credit score is an important long-term goal. If you don’t have the time to wait for a low-interest car loan and need a car sooner rather than later, try looking for vehicles that you will be able to pay for upfront. If you have the cash, the selection of vehicles under $10,000 is a great place to start. If you have more questions about rebuilding your credit, securing financing or what vehicle will work best for you budget contact McLachlan Auto Solutions online or over the phone.