For Georgia drivers that have bad credit, you may have been told that financing a new or used car is out of the question. Well, at Athens Ford we understand that having bad credit doesn’t make you a bad person. Our bad credit, car finance team specializes in getting great financing even for drivers with low credit scores. If your credit has taken a hit like so many other folks around here in Athens or out in Winder, Jefferson and Loganville, give us a chance to show you what we can do.
In an effort to help all of our customers from Athens, Jefferson, Winder, Lawrenceville, Gainesville, Loganville and all over Northeast Georgia, we want to let you know a little more about how the financing process works. We also think it’s important to give you some tips on how to improve your credit so that you get the best financing rate possible.
Bad Credit Auto Loans
Financing a new or used car when you have bad credit requires a little more effort, both on your part and from our expert finance team. For your part, you should be prepared to talk about the reasons your credit has suffered, and what you’re doing to work toward improving it. Be sure to read the tips down below that show what you can do to improve your credit score and make it more attractive for a lender to finance you.
What you can expect from our team in return is their best effort to get you financed at a great rate. How it works is like this. Lenders want to finance new and used car buyers. However, if you’ve got bad credit they see you as more of a risk. In order to offset the risk they’re taking, they will charge a higher interest rate for bad credit auto loans than if you had good or excellent credit. Our team will work hard to find a lender that will give you the best rate possible, given your credit score and situation.
Things to watch out for
When you have bad credit and you’re looking to get financed, there are some things you want to avoid doing. For one, don’t apply for a bunch of new credit just before you try to get financed. You also want to work with just one finance team rather than going around trying to shop for a great deal. The reason for this is that every time your credit report is run, it generates a “hard inquiry” of your credit and that can send a red flag. Let our finance team do the work for you and keep your credit score as high as possible.
Tips for how to improve your credit score
Obviously the higher your credit score, the more likely it is that you’ll find financing at a great interest rate. So, what are some things that you can do to improve your score?
- Request a copy of your credit report and thoroughly check it for errors. The FTC has estimated that at least 35% of credit reports have negative marks on them that shouldn’t be there. If you find any errors, you have the right to dispute them and have them removed. This can raise your credit score almost immediately. (Hint: you can request a free copy of your credit report once a year using the government mandated website www.annualcreditreport.com)
- Bring your total debt-to-available-credit down. If you have any credit cards that are close to being maxed out, work to lower the total. Also, don’t cancel cards that have a zero or low balance on them – they help to keep your available credit higher.
- Finally, like we mentioned above, don’t apply for a lot of credit all at once. This has the effect of lowering a metric in your overall score and sending a warning to potential lenders. If you know you will be trying to get a loan, don’t apply for any new credit for at least 30 days before.
Now you know some of the secrets for how to finance a car with bad credit. Our bad credit, car finance team here at Athens Ford will work hard to make sure you get the new car or used car financing that fits your budget. We’re here for any Georgia drivers who may have had a tough time with their credit during these hard economic times. Come in and let us show you just how good we are.
Written By:Mark Ficken
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