Buying a car in Beamsville with a credit score under 620
Buying a car in Beamsville with a credit score under 620
Posted on June 14, 2022
If your credit score is less than 620, it might be hard to get a car loan on your own. We'll explain how Beamsville car loans work and what you need to do if you want to buy a car.
How often do you look at your credit score, and do you use both Equifax and TransUnion or just one?
You should always look at both agencies' reports to make sure you have the right information.
Each credit reporting agency will have its own scoring system, so Equifax's and TransUnion's scores will differ.
Since differences could happen, you need to be on top of things.
Understanding why your credit score is less than 620
In a few minutes, we'll tell you how to get a car loan, but first, we need to know why your credit score is less than 620.
There are two main things that affect your credit score. The first is how well you've paid your bills in the past.
Your credit score will go up if you pay your bills on time. If you miss even one payment, your credit score could go down by 25 to 50 points. This is why you should never be late with your bills.
The second thing that affects your credit score is how much debt you have altogether. Your credit score will go down if you have too much debt. Try to keep the total amount of credit you use between 30% and 40%, and you should be fine.
Finding companies that will give you a Beamsville car loan
We've talked about things that affect your credit score. Now we can talk about how car loans work and how to find lenders who will work with you.
A car loan starts with an application. Potential lenders will look at your credit score and income and decide if you are a good risk based on that information.
How responsible you are with your money is shown by your credit score. The higher score shows that you take care of things better.
Even if a potential borrower has bad credit, there are lenders who will still give them a loan if they have a good income. Your income will need to be stable, which means that if you have a regular job, you will need to have worked there for at least six months.
You won't be able to find online lenders who will lend you money for a car if your credit score is lower than 620. Get in touch with a car dealership near you.
They can help you get a loan. The dealership will take the time to learn more about your situation and figure out why your credit score is low.
The dealership will talk to the lender on your behalf. If you tried to get a loan on your own, you would be turned down, but the dealership has a good relationship with these lenders and can get you a loan.
If your credit score is below 620, it's hard to get a car loan, but the local car dealership can help. But you need to get help soon because car prices are going up.
When you’re ready for a car lease or loan, get in touch with the Beamsville auto loan experts at Northway Ford for great deals on auto finance.