Auto Financing with Bad Credit
How to Finance a Car With Bad Credit
If you find yourself with bad credit and think that you can’t get financing, you may be surprised. Here at Volkswagen of Athens, our financing team specializes in all types of loans, including bad credit auto loans. Whether you need financing for a new Volkswagen or one of our used cars, we can usually find a bad credit auto loan for many situations.
Don’t get frustrated just because you may have been told you won’t qualify. Our team of experts works with a variety of folks with bad credit and help them find finance lenders, and will do everything possible to make sure you get the loan you want. Over the two decades we’ve been in business, we’ve helped thousands of folks just like you to get the car they want at the rate that works for them. You see, our team isn’t happy unless you are.
We’ve worked with thousands of people throughout northeast Georgia, from Jefferson to Gainesville, Winder to Lawrenceville and beyond. We’ve also helped folks to actually improve their credit by giving them a few suggestions and some information about how credit affects your finance rate. Here are some helpful tips straight from our financing team.
How Your Credit Score Affects Your Finance Rate
When we work with lenders that are considering giving you a car loan, they will first look at your credit score. This is how they determine how much risk they are taking in lending you the money to buy the vehicle. If you have bad credit, they will typically charge more interest because they feel they are taking more risk.
Some lenders however, will look beyond just your credit score and will consider things like the circumstances that led to your bad credit, amount of time you’ve been employed, what your credit was like over a longer period and things that give a fuller picture into your financial character. These are the lenders we like to work with.
Tips for Improving Your Credit
Did you know that your credit score may not be accurate? If you haven’t thoroughly reviewed your credit report, you should do that. It’s estimated that as many as 25% of credit reports contain errors that can cause a lower credit score. Dispute any mistakes, and your credit score could improve almost immediately.
One of the things that can negatively impact your credit score is the amount of credit you apply for and when you do it. To maximize your score, you should not apply for any new credit (including credit cards) for at least 30 days prior to applying for a car loan.
Be prepared to describe why your credit has suffered and what you are doing to fix it. Lenders love to see that you have changed your situation and are now looking to be more financially responsible.
If you have credit cards with small balances, pay them off first. The total number of debts you have outstanding can work against you. You shouldn’t close the accounts though, since they actually contribute to your total available credit limit – a good thing.
At Volkswagen of Athens, we like to think of ourselves as members of the community we serve. This is why we work hard to make sure that you get the vehicle you want and the financing that works best for you. By doing our best to get you the loan you deserve, we know that you will recommend us to your friends, family and neighbors. That’s how we’ve gotten the reputation that we have as Northeast Georgia’s Volkswagen dealer of choice.