Do you need to get a new car but have a credit score that is less than perfect? Are you a first-time buyer with no credit history? The good news for Denver car shoppers is that, while it may be a bit more difficult, it is possible to get a no-credit or bad-credit car finance plan. Learn more about no-credit car loans and how to finance a car with bad credit in this guide from the finance team at Planet Honda.
The first thing you need to keep in mind when you’re financing a car with no credit is that your down payment may be more than average and interest rates may be higher. Make sure you know what your budget is and give yourself some leeway. Take note of these tips from our finance specialists.
Don’t Assume You Won’t Be Approved
If there are problems with your credit, you may convince yourself that you’ll have to take whatever financing option is offered. That’s not always the case. When financing a car with bad credit, ask questions to find out if there are other options that would be more beneficial for you.
Improve Your Credit Score if Possible
One of the ways you can build up your credit rating is to work out a payment plan and start paying off any outstanding debts. Using your credit card on small things, for example, and then immediately paying it off will help boost your score.
Apply for Loans the Smart Way
When applying for financing, your credit score can take a hit. Keep all of your loan applications within a 14-day period to limit potential damage to your score.
Don’t Accept Just Any Offer
You don’t have to accept the first offer just because your credit is less than ideal. Since many Lakewood-area dealerships work with multiple lenders, there’s a good chance you could get a better offer.
Be Prepared for Higher Costs
Higher interest rates and larger down payments are common if you apply for a loan with no credit or bad credit. It’s important to keep that in mind as you go through the process.
The finance experts at Planet Honda are ready to help make securing a bad-credit car loan as easy as possible for drivers from Arvada and beyond. Use our payment calculator to find out what your monthly payments will be, and then apply for financing with us online. We can also fill you in on guaranteed car financing, how to lease a used car, and more! Contact us today with any questions.