For those with poor credit, it’s becoming easier to find auto financing. Although lenders’ definitions of “subprime” differ, the major credit bureaus identify anyone with a score of less than 620 as being a higher risk. Even if one has been turned down for Used Cars Auto Loans Sharon PA, they may qualify now. Below are several steps for drivers to take to increase their chances of getting a car loan at a good rate.
Get a Credit Score
A person’s credit score is an overall picture of their current creditworthiness, and it can change quickly. If one hasn’t checked it within the last six months, they should do it before getting a car loan because it’s the biggest factor lenders consider. Go to www.freecreditscore.com for more information.
Get a Credit Report
While a borrower’s credit score provides information on their current credit status, a report offers more in-depth information on their credit history. A credit report shows whether one has defaulted on Used Cars Auto Loans Sharon PA, gone into bankruptcy or had a repossession. Equifax, TransUnion and Experian gather information from lenders to assemble the report, which is provided to lenders.
Take Steps to Clear Up Credit Blemishes
The information given to the credit bureaus is not always accurate. Credit reporting agencies have procedures by which borrowers can dispute errors. If these mistakes are present, they should be reported to the appropriate bureau. Borrowers should do what they can to clear up legitimate blemishes on their credit reports, such as bringing accounts up to date, before visiting Kightlinger Auto Sales.
Offer a Larger Down Payment
The more interest a person has in a deal, the more likely the lender will be to offer a low-rate loan. Lenders believe that if a person provides a larger down payment, they won’t be as likely to go into default. 20% is a good number with which to start, but some borrowers can get by with less. However, if one’s credit is very poor, a large down payment can convince lenders that they’re serious.
Gain Preapproval for Financing
Rebuilding or establishing credit is a large task that shouldn’t be trusted to others. Unless one has impeccable credit and they’re applying for a manufacturer-sponsored loan, the business office of a dealership is the wrong place to look for financing. If possible, one should get financed before looking for Used Cars Auto Loans Sharon PA. Visit domain URL for more information.
