How to Get Financed for a Loan with Challenged Credit

March 25th, 2019 by

Nissan South Union City has a few tips on how to get a car loan financed, even if you have challenged credit. Deciding that you are going to get a new car is an exciting time, so do not let the fear of being denied what you need hinder the experience. If you go in prepared, you will see that there are many options for financing available even if your credit is not in the best shape.

What can you do to prepare for financing a car in the short term?

If you need a new car now, you do not have the time to make your credit go up. A good starting place is to go online and find your credit report to know your score. It is very common for dealerships to advertise their low interest rates, but most of the time these percentages are only applicable to people with the best credit scores. Knowing what your credit score is, before going into any dealership to talk about financing, will put you in a good place to be able to have these conversations in an informed way. Even if your credit is looking rough, you still have the option of shopping around for better rates.

Most of the time when people go into these conversations with less than great credit, if they get accepted for a loan there is no more questioning. It is worth it to ask if the rates can go lower or to continue to look at other banks because the interest rates do change quite a bit. Putting in the research here can save you a lot of money. It is also a good idea to get quotes before you go into the dealership. They will have rates available, but usually are only best for the people with great credit scores. Online lenders will give you an option, and it will give you a baseline. Then, when you are talking with a salesman at the dealership, if they happen to give you a better loan, you are still able to decide on that one. It is better to be more prepared than less prepared.

What are key way to get pre-approved for a loan?

Knowing the numbers that you can handle is also an important thing before you go to the dealership. It is often a good idea to make the loan as short as possible, because you will save a lot of money in interest this way. Know your budget and what the maximum is you would be able to pay for each amount in a car payment, then stick with that. The longer your loan is, the more you will pay in interest. It is also a great idea to put money down at the start. You can talk to different advisors about what is best for you, but for example, putting twenty percent down at the purchase, it will give you a bit of a safety net if something happens and you need to sell the car. Another thing that will be tempting when you are at the dealership is all of the little extra add ons that the car has available for it. The best idea for add ons, fees and taxes are to pay for them with cash. If you were to put these on your loan, your debt would be going up, but the value of the car would not be, so it could put you in a bigger hole than you want to have to get out of.

What can you do to stay protected once your car is financed?

An option that many people look into, once they have financing on their car, is gap insurance. It can also be called auto protection insurance. When there is a gap in your car’s worth and what you still owe on it, this insurance will protect you if your car gets totaled or has a wreck.

All of these things are great ideas to look up before going in to talk about financing. Getting a car financed is usually possible even with bad credit, so you will be able to find an option that works for you.

Get Pre-Approved in Minutes at Nissan South Union City Near Atlanta, Georgia

Nissan South Union City is here to help you get financed! With our expert financial advisors, you can get an unbelievable deal on your new or quality pre-owned Nissan, without experiencing rejection or a bad headache from a challenged credit report. Call or visit our dealership in Union City, Georgia to get the credit assistance process started and grant you the car, truck or SUV of your dreams!

Posted in Credit Assistance