Is your credit less than perfect?
You’re not alone. In fact, some estimates show that a quarter of American adults are saddled with poor credit. Yet, many of these individuals manage to get auto loans every day.
So, how do they do it? And, more importantly, how can you do it?
It’s not as difficult as you might think, especially if you follow a few steps and accept some realizations.
Set Your Expectations
While you may be able to get a car loan, you’ll likely pay more to obtain it―through higher interest rates― than someone with a better credit rating. If your credit score generally falls below 620, you’re considered to be a sub-prime borrower, which means you won’t qualify for the most attractive loan offers.
If you have poor credit, it’s important be realistic about the cars you’re hoping for. Opting for expensive vehicles that are out of your financial league is going to make obtaining a loan that much harder.
So, think practical. You’ll stand a better chance of getting a car loan. And, perhaps later on once your credit rating and financial situation has improved, you can land that dream car.