Have you been going to different auto financing lenders only to be denied a loan? This may be because you have a low credit score.
Your low credit score can affect a lot of things in your life, such as being able to get an apartment, phone plans, and even getting a car loan. Your bad credit score can make a lot of people be hesitant to allow you to get anything that seems like an investment.
Thankfully, you don’t have to let your credit history keep you from getting the car that you need. You can still get a car loan by visiting a buy here pay here NC Raleigh car dealership to get a car loan from them.
It may be surprising to find out that you can qualify for a car loan from a car dealership when other traditional auto financing lenders and banks won’t give you a loan. Keep on reading to find out how you can get a car and more about your credit score.
To know for sure, you will have to check your credit reports to pinpoint the exact reasons as to why your credit score got so low. A common misconception that people have is that never getting a loan before must mean that they have a good credit score.
However, never getting a loan before can actually make your credit score low! This is because you have nothing to prove that you can pay off a loan that you took.
Of course, one of the more common reasons as to why you may have a low credit score is because you missed a lot of monthly payments. This will also include when you pay for them late or not paying them in the full required amount.
If you have a habit of paying for your bills late, this can easily build up to a low credit score. If you have financial legal issues, such as declaring bankruptcy in your past, it can also greatly affect and lower your credit score.
Buy here pay here car dealerships are much more accommodating towards people with bad credit. They offer you car loans for quality used cars. It works because the car dealers themselves will get a loan on behalf the dealer, or they’ll basically extend the credit towards you.
This means that they will be in charge of finding a lender to be able to give you a car loan to get a car from their car dealerships.
The reason as to why they are more accommodating towards people with low credit scores is because they will also earn money.
They will want to make a sale, so they will take on the high risk clients that traditional auto financing lenders and banks do not want to take on. However, this doesn’t mean that they will approve you for a car loan without taking a look at a few things about you first.
What Does a Buy Here Pay Here Car Dealer Have to Look at?
Well, one of the most important things that they will want to know about you is what your current income looks like. This will help them estimate to see if you have a good enough income to pay off the car loan that you would take from them.
They might also want to know if you have job stability in order to see if you will have a constant income flowing throughout the duration of the repayment of the car loan. Additionally, they will want to know your contact details, such as your mobile phone number.
Giving them your address and phone number is crucial in order to get approved at a buy here pay here car dealership. You might have to receive text messages from dealer to remind you of your monthly payments for the car loan or to tell you that it will be late.
So when you sign the papers if you get approved for a car loan, be aware that you know that it will include consent to receive calls at the mobile phone number you are using if you are missing or lacking payments for your car loan repayment.
What Are the Downsides of Getting a Car Loan from a Buy Here Pay Here Car Dealership?
One of the downsides that you might experience from these kinds of car dealerships is that you may have to face higher interest rates. However, keep in mind that you may have to deal with these high interest rates if you were to get a car loan from a traditional auto financing lender or bank anyway.
Your bad credit score could leave them at risk, so charging a higher interest rate would be their takeaway. They would only charge smaller interest rates to people who have average or good credit scores.
You may also have to deal with the fact that they will put a tracking device into the car that you get. Not all of the buy here pay here car dealerships will do this, but many of them will. Once you sign the contracts and documents, you are giving them consent to do so.
They will do this because you are considered a high risk client because of your credit history. So if ever you decide to stop paying off your car loan or miss payments, they will be able to know where the car is on the off chance that they would need to repossess it.
However, they will not repossess the car, of course, as long as you are paying off your car loan each month on time and in full.
Knowing how a buy here pay here car dealership works will help you know what you are getting into before you get a car loan from them. It is the most efficient and quickest way for people with bad credit to get easy access for car loans.