Blog > Recent Articles In Bad Credit

Pros and cons of ‘buy here, pay here’ dealerships

  Some dealers claim “we finance anyone,” but it may come at a price Other options include applying for approval before you shop   What are “buy here, pay here” dealerships? “Buy here, pay here” dealerships not only sell cars but effectively act as the bank, too, by providing in-house financing, typically for buyers with bad credit.* Interest rates can be higher than other lending options and customers make car payments directly to the dealership. They’re different from traditional dealerships that request financing from prospective lenders, with customers generally making payments to a third party.†   Pros of “buy here,… Read More

Pros and cons of buying a used car

More than twice as many car buyers opt for a used vehicle over a new one, but is that the right choice for you? While lower used-car prices are a key factor for most consumers, there’s more to consider as you come to a decision.     Pros of buying used Lower prices Used-car buyers can take advantage of rapid depreciation in the value of new cars to the tune of 20 percent in the first year and about 40 percent after three years. Lower average prices for preowned vehicles also provide a better chance of being able to pay… Read More

Understanding your auto finance options

  Find a loan that runs as sweetly as your new car There are plenty of car loan options out there, and many of them may be suited to you. Knowing where to look, however, is the starting point that makes it much more likely you’ll end up with the right one. This overview outlines the main avenues you can pursue as you seek approval for new or used auto financing.   Traditional dealerships Getting your financing through a dealership is a common approach as it allows you to buy a car and arrange credit at the same time. The… Read More

Do car payments build credit?

  To a large degree, your credit score reflects how well you repay your debt, so timely payments on a car loan can be an effective way to build your score.* Other things affect your credit standing, too, such as how long you’ve been using credit products, but paying off an auto loan over a period of years demonstrates to a credit reporting agency that you’re a good, or better, lending risk. That has significant potential benefits for the future because next time you need to borrow, whether for a car loan, mortgage or credit card, you’ll likely have an… Read More

How much should a down payment on a car be?

  • 20 percent for new and 10 percent for used vehicles recommended • Smaller down payments still offer advantages   Whatever you can afford as a down payment on a car will stand you in good stead, but the general view is that you should aim for 20 percent, or at least 10 percent if buying a used vehicle. One of the main reasons for these figures is to offset the depreciation in a car’s value that inevitably follows a purchase. A down payment offers other advantages, too, including improving the chance of loan approval, a lower APR and… Read More

6 ways to improve your credit score before buying a car

  If you’re relying upon a loan to purchase your next vehicle, you may want to improve your credit score before you apply. Credit score is normally a leading factor for lenders weighing your application and, if approved, it will also affect the terms of the loan offered. Amount financed and APR, for example. In that light, a cared-for score could make the difference between a new set of wheels or no wheels at all, and potentially save you thousands of dollars on finance costs. Here are six ways to get credit savvy and move your score higher.*   1.… Read More