Financing a Used Car with Bad Credit
Andy Mohr Automotive Group offers a wide variety of used cars, trucks, and SUVs to drivers in Indianapolis, Plainfield, and Bloomington. If you’re shopping for a used car but are worried about your credit, don’t be!
Shopping for your next car should be fun and exciting. When you’re looking for your next car, there’s no need to worry about financing a used car with bad credit. Our finance team is here to help.
What Goes into Your Credit Score
Your credit score is determined by several factors, but what they all have in common is that they relate to your payment history.
About a third of your credit score is comprised of debts you haven’t paid off. If you have unpaid credit cards bills or outstanding loans, then that’ll be directly reflected here.
Another third of it comes from how frequently you make payments on any outstanding credit that you have. For example, if you make a consistent monthly payment on your credit card debt, it’ll improve your score more than one big payment every three months.
The remaining third of your score is mainly made up of your credit history. If you’re debt-free now but your history shows that your credit has gone up and down frequently over time, it can have a negative impact on your score.
One final thing that’s considered is how many lines of credit you have. If you’re signing up for more and more credit cards or have multiple outstanding loans, then that can hurt your score.
How Does Credit Affect Used Car Financing?
Your credit score is considered before lots of major financial decisions. From buying a car to becoming a homeowner, your financial past can affect your future.
The reason for this is because banks and lenders are more likely to hand out loans to people who have shown a history of maintaining good credit and being able to make payments consistently.
There’s no need to worry if you don’t have great credit, though. Our finance department is here to work with you, no matter what your credit score or credit history may be.
How to Finance a Used Car with Bad Credit
Even though our team will help you get the best financing options possible, it’s still a good idea to try to improve your credit before you start shopping for a used car.
The first thing you should do is check your credit score. Next, pay off any debts or lines of credit that you’re able to.
After that, you’ll meet with our finance department to discuss your options and an auto loan. There’s a couple ways to get a better loan offer, such as getting a cosigner with good credit or agreeing to a shorter loan period. Your monthly payments will be higher with a shorter loan, but your interest rate will be a lot lower.
At Andy Mohr Automotive Group we have a team of financing professionals who make it their goal to get drivers in Indianapolis, Plainfield, and Bloomington behind the wheel of the used car that they’ve got their eye on.
They work with local banks and lenders to get you options that work for you and make the process as simple and transparent as possible.
Financing a used car with bad credit is no problem for the experts in our finance department. Apply for financing online to get started today.