Buying a new car can be difficult if
you don't have good credit. You still have options if your credit score isn't
the best, ranging from putting down a large down payment to getting a
co-signer. Here are some ways to convince a dealership to lease or sell you a
car, regardless of your credit rating.
Know
your credit score Before you visit
dealerships and apply for an auto loan or financing agreement, find out your
credit score. Get this from any of the credit bureaus. It helps to have it from
all three as it may vary depending on which bureau your creditors report to.
Review
your credit report Pull up your
credit report - it gives you some insight as to what the dealership is seeing
regarding your financial and credit history. One of the perks of getting a copy
of your credit report is that some items might be outdated or incorrect, which
you can report and have removed. Get the report from each of the major credit
bureaus.
Find
a co-signer If possible, ask someone
you know and trust (who needs to be able to trust you!) with good credit to be
your co-signer. All they need to do is sign your leasing agreement stating that
if you are not able to make the payments, they will cover them. Most
dealerships are more than willing to sell you a car and help you finance it if
you have a co-signer.
Work
on your credit It is never too late
to start improving and rebuilding your credit. Pay off any debts or collections
you currently owe in full or contact the creditor handling the collection and
set up a payment plan. In both cases, the creditor should report it to the
different credit bureaus that show up on your report. If a dealership pulls up
your credit report they will see that you have been working on repairing your credit. Another
important thing to do is pay all of your current bills on time every month for
at least six months to a year.
Consider
a large down payment Dealerships
want to know you are financially stable to enough to afford the monthly payments,
but it can also help to put down a significant down payment. The
standard down payment for a vehicle is 5-10%, but if you can pull off 20%, you
are much more likely to be approved for the auto loan. At least put down 10% - and
along with either a co-signer or showing you are financially secure, you will
have a good chance.
About
the Author: Tina Samuels writes on how to get an auto loan, small business topics, health, and social media.
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