If you are in the market for a car loan but have bad or no credit, it’s important for you to be aware of how your credit situation affects your car loan. Having bad credit or no credit doesn’t mean that you can’t get a car loan, especially when you work with one of our dealerships, but it may mean that you have to compromise on the type of car that you get or the type of loan that you get. Here are a few things we think you need to know about credit if you are interested in getting a bad credit or a no credit car loan:
Credit is a Report Card
Your credit is very similar to a report card that you might get in school. Credit is an accumulation of all of the financial decisions you’ve made over your lifetime. You get ranked based on those financial decisions and circumstances. The higher the credit score, the better the financial decisions have been (or the longer the credit has been). The lower the credit score, the shorter the credit history and the less positive the decisions have been.
Bad Credit can Happen to Anyone
Anyone can find themselves in a situation in which they have bad credit. In some cases, people have bad credit because they made decisions without the awareness of the financial consequences. Other times, they have not been financially responsible (everyone can get that way from time to time). And sometimes people have bad creditsimply because they have found themselves in a difficult situation that has made is impossible for them to manage their finances the way they would have liked. However, it is important to keep in mind that anyone can have bad finances.
Good Decisions Improve your Credit Score and History
Making good financial decisions can improve your credit score and your credit history because these good decisions will reflect positively on your credit. For example, if you take out a loan and repay that loan, you are proving to future lenders that you are capable of taking out a loan and repaying it. Therefore, chances are good that they will have faith that you will repay their loan. Taking out a no credit car loan that you repay only improves your long-term credit history as well.
Ready to take the next step? Fill out our online credit app here!