Bad Credit Car Loans in Haverhill MA

Everybody needs transportation, and even if you have fair to bad credit, AutoFair Ford of Haverhill is willing to work with you. We are also willing to help those with no credit history at all. We strive to have 100% credit approval for all customers wanting to buy a new or used vehicle from us. So, now you know that you have somebody on your side, but what must you do to secure that loan?

Initial Steps

Before applying for a car loan, it is important to know your credit score. The most effective way to do this is by getting a copy of your credit report from all three national credit reporting services: Experian, Equifax, and TransUnion. There are also many free websites that may be able to help you find your credit score. If your score is less than desirable, you still have some options. If you aren't applying for a loan right away, you can work to increase your credit score by paying all your bills on time, reducing your debt as much as possible, and making sure that there are no errors on your credit report.    Now that you know your credit score and what you need to do to improve it, you should do some research on your finances and figure out what monthly payment you can afford. A sizable down payment can help lower your monthly payments and show a lender that you are worth the risk to them. So, make sure that you have enough money on hand for an down payment that will help make a difference. Keep in mind that this might mean holding off on your purchase until you can save a little more.

Getting a Car Loan with Bad Credit

If you need a car, but you don't have time to improve your credit score before applying for a car loan, there are some options. First, getting a cosigner with good credit will greatly improve your chances of getting approved for a car loan. Since your cosigner is essentially paying the lender if you don't, the lender takes on much less risk. Less risk for the lender can also equate to a lower interest rate for you.    Credit unions are known for offering fair loans, with low interest rates, to people with bad credit. There may be a credit union associated with your employer or to an organization that you belong to, but certain credit unions have restrictions. To find out if you are eligible for a credit union, you should contact them and speak to a representative there.

After Purchasing a Vehicle

Once you have been approved for a car loan and purchased a vehicle, there are several things you should do. First, keep a copy of your contract. It will be good to know the exact terms for future reference. Next, make sure to always pay on time and never miss a payment. A late or missed payment can really hurt your credit score, especially if you already have bad credit. To ensure that you always pay your car loan on time, set up automatic payments. Some subprime lenders will actually require automatic payments as part of their terms.

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