Sometimes it’s just a few bad decisions that have a long-lasting result. You may have skipped a few bills or forgotten to pay a ticket that went to collections. Other times, it’s a wrench thrown into your plans that’s completely unexpected. A death in the family, a split from your spouse, or job loss. But no matter how you got there, you still have bad credit. And now, you’re feeling the pain when you try to buy a car with bad credit. It’s not impossible to buy a car with bad credit, even though it feels like it at times. But you can do a few things to help make getting a loan approval easier.
Here are five easy steps you can take before you buy a car with bad credit.
Pull Your Credit Score
You can do it online without any trouble. Visit Equifax.com, TransUnion.com, or Experian.com for up-to-date credit reports. This information doesn’t tell you if you qualify for a car loan or will get approved, but it is helpful in one very important way. It lets you know what you should expect when you apply for a car loan. Lower scores don’t mean you won’t be approved, but it will mean your interest rate will be higher. It helps you prepare for what’s to come.
Determine if Now is a Good Time to Buy
Is it critical to buy a car right now or can it wait a little longer? Perhaps you know money will be tight for a bit or you’re expecting a seasonal layoff. You might want to postpone your purchase until you have better cash flow. Or maybe it’s the right time to buy. Your credit is getting better and you have the money you need to make a car loan happen. Assess your current situation to see if it really is a good time for you to buy a car.
Create a Budget
It’s easy to forget about everything else in life when you’re shopping for a car. Maybe you can afford your car payments, but what about the rest of your bills? Do you need house repairs soon, and do you have wiggle room for unexpected expenses?Calculate all your current commitments. Give yourself some headroom for surprise expenses and bills. Then use the remaining money to budget for your car.
Choose a Reputable Dealership
If you are looking to buy a car with bad credit, don’t even consider a private purchase. It’s virtually impossible to get a loan for that type of purchase. Instead, choose a reputable dealership (such as CarUp KC) to help you buy a car with bad credit.
Before you look for a specific car, find out what you’re pre-approved for. With a pre-approved loan, you’ll learn how much you can finance, over how long, and what year of car you should be looking at. Getting pre-approved can avoid the heartache of finding a car that you can’t get financing for. In Kansas City, lean on CarUp KC to buy a car with bad credit. We have relationships with lenders who work with clients who have no credit or bad credit. We’ll get you in a car you’ll love to drive.