Bad Credit Car Loans in Warwick, RI

Even if you suffer from bad credit, the financing team at Balise Toyota Warwick is here to help you get back on the right footing so you can drive away in a reliable used or new vehicle. As much as it might seem like you’re stuck in a helpless situation, understand that you’re not the only one, and there are ways to escape this rut as you work to improve your credit standing. To help get you started, we present the answers to some frequently asked questions about buying a car with imperfect credit, along with information on how you can improve your credit score so you don’t have to worry about future financing rejection.

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How do I know if my credit score is bad?

Credit scores are arranged on a numerical scale ranging from 300 to 850. A score in the 300 – 579 range is considered poor, with the other categories being fair, good, very good, and excellent.

Where can I get a copy of my credit report?

You can (and should) get a copy of your credit report from the three nationwide credit reporting companies: Equifax, Experian, and TransUnion. Through any of these institutions, you’re entitled to a free credit report every 12 months. It’s your responsibility to check your credit reports for accuracy and correct any errors that you find.

There’s an inaccuracy in my credit report. What should I do?

Gather your proof that you’ve settled the debt and then call the creditor to state your case. Situations like this that aren’t resolved will negatively affect your credit score, so be diligent.

If my credit is poor, can I still be approved for a car loan?

You can, but you’ll have an easier time if you improve your credit first. Start by paying off as much of your existing debt (credit cards and outstanding bills) as possible. If you don’t have time to work on improving your credit because you need a car right away, you can ask a trusted relative or friend with good credit to cosign for you.

How does cosigning work?

Cosigning simply means that another person (with a better credit history than yours) is going into the financing contract with you. Involving a person who’s proven to be more responsible with debt increases your odds of being approved at a lower interest rate. There is a catch, though: not everyone likes to be a cosigner because it puts them at risk and makes them responsible for any payments you default on. That means you should be prepared to take no for an answer.

What will happen to my credit if I miss a payment?

Experian states that your payments account for 35% of your credit score, meaning that even a single missed payment will cause your score to dip. That said, if you make payments consistently and on time, you’ll see your credit score steadily rise.