Bad Credit Car Loans

A bad credit score doesn’t have to mean the end of your quest for automotive financing. There are several routes you can take, and chances are one of them will be the answer for your situation. Balise Toyota of Warwick understands that people can end up with a low credit score for a variety of reasons, and they just need a second chance. That’s why we’ve established good working relationships with lenders who have that same understanding.


Work to Increase Your Credit Score

A credit score can range from 300 to 850, with scores under 670 considered fair and scores under 580 considered poor. If you’re in the lower end of that scale and you aren’t under the gun to get a car right away, there are a few things you can do to help increase your credit score.

Start by getting a copy of your credit report online and checking it for inaccuracies. If you find something on the report that isn’t right, such as a debt you’ve paid that hasn’t been removed from the report, you’ll need to call the debtor and work with them to get it taken off the report. Other things you can do to raise your score include paying off as much debt as possible, always paying every bill on time, and not opening new credit unless it’s absolutely necessary. You also shouldn’t close any credit cards that you’ve paid off, even if you never intend to use them again. That’s because the amount of your total available credit that you are not using is calculated into your credit score. So, if you’re extended a lot of credit but don’t max it out, you’re showing potential lenders that you can manage credit limits.


If You’re Still Rejected for Credit

It’s tempting to throw in the towel when your application for financing has been rejected, especially if it’s not the first time. But there are still a couple of good options you can try. For one, you can ask a close friend or relative if they would be willing to cosign on the loan for you. This is a pretty serious favor to ask, and it requires a high level of mutual trust, since the cosigner will essentially be on the hook for your debt if you fail to make the payments for any reason. But, if they know you well and understand your situation and what you’re doing to improve it, they may agree to be the crucial helping hand that you need.

You can also apply for a loan using a subprime lender – one that specializes in helping people with credit challenges. This type of financing will carry different terms: a higher interest rate and possibly weekly payments versus monthly. A lot of subprime lenders will also require that your payments be made by direct deposit. Of course, once you’re in the loan and driving your new car, as your financial situation gets better you can look toward refinancing to a lower APR. Remember that with each on-time payment you make, your credit score will rise – as long as you faithfully pay every other bill and don’t take on more debt.


Balise Toyota of Warwick Is Here for You

If you’re ready to apply for your loan, we have experienced financial specialists who are always ready to help you. Come see us at 1400 Post Road in Warwick, RI, or call 401-352-5911. You can even apply online, if that’s most convenient.