A new vehicle is a big investment – and choosing the right one for you is a major decision. It’s important to take your personal finances into account, not only considering make and model but monthly payments and auto loans.
Some car dealerships may try to talk you into an unwise purchase, but Hoover Chrysler Dodge Jeep RAM’s Financing Department will never steer you wrong. Our trusted team will help you find a vehicle that’s perfect for your lifestyle – and your budget! No matter your credit history or financial situation, we’re here to help!
What Impacts My Credit Score?
There are two main factors that affect your average credit score: payment history and credit use. Payment history, which makes up 35% of your score, is an indicator of whether you can be trusted to pay your bills on time. Many subprime borrowers have bad credit scores because they have a history of late or missed monthly payments.
Credit use comprises 30% of your score and involves the amount of available credit you’re already using. For instance, if you already have a large loan or maxed out credit cards, auto lenders might not consider you to be a great candidate for a car loan.
How Can I Check My Credit Score For Free?
There are different types of credit scoring models, but it’s a good idea to have at least a general idea of your credit score when buying a car. You can likely get your credit score for free from one of the following:
- Credit card company
- Bank or credit union
- Financial counseling company
- Online resource (Experian WalletHub, Credit Sesame, Credit Karma, etc)
Can I Get a Car Loan With Bad Credit?
Buying a car with bad credit can be difficult, but here at Hoover, we work hard to ensure that your credit history doesn’t keep you out of a reliable ride. Keep in mind that your average credit score impacts the following:
- Car loan eligibility
Auto lenders are more likely to give car loans to buyers with good credit.
- Interest rate
The lower your credit score, the higher your interest rate. This means that you’re paying much more over the course of the loan than a borrower with a good credit score.
- Monthly payment
A high interest rate will increase your monthly payment.
In contrast to traditional dealerships, “buy here pay here” car dealerships often don’t check your credit score when you’re buying a car. Instead, they finance the loan in-house, eliminating the need for an auto lender. “Buy here pay here” dealers typically charge high fees and interest rates, though, potentially worsening the borrower’s financial situation.
Vehicle Financing in Charleston, SC
Whether you’re buying a car with bad credit or good, the Finance Team at Hoover Chrysler Dodge Jeep RAM is here to help! We’ll walk you through the process step by step, comparing car loans to find you the lowest interest rate and monthly payment possible.
We take your personal finances and current situation into account, setting you up for success with a great auto loan. Rest assured that to us, you’re more than a subprime borrower or a bad credit score – you’re a member of the Hoover family!
Come check out our huge selection of new and used vehicles today!