Can I Get a Car Loan with Bad Credit in The Bronx

Can I Get a Car Loan with Bad Credit?

Not everyone has a perfect or even average credit score. If your credit is less than desirable like many other drivers, you may still be able to secure an auto loan . Yonkers Automall has helpful information for increasing your chances of being approved for an auto loan when you have bad credit.

Understand the Basics of Credit and the Impact of a Loan

The first order of business is to get an elementary understanding of credit scores and the impact of a loan. If you have a poor credit rating but are consistently satisfying monthly payments on your automobile loan, your responsible behavior will be rewarded by positively impacting your credit score. However, if you are late with monthly premiums or miss payments completely, your credit score will plummet further.

Set Your Budget

Next, carefully decide how much you are realistically able to spend on a car by calculating a budget according to your financial situation. Be sure to add in all the other expenses related to a vehicle’s ownership. You must think about the actual cost of your intended vehicle, your approximate insurance premiums, any taxes, and fees, projected routine maintenance expenses, and the fluctuating prices of fuel. Sticking to your intended budget will help you to stay on track with shopping for automobiles that only fall within your set price range.

Qualifying for a Loan with an Unfavorable Credit History

Dealerships consider factors other than just credit scores to determine auto loan eligibility for customers with bad credit. They commonly refer to the income-to-debt ratio when deciding if someone will qualify but they may ask for details about a prospective loan recipient’s employment and housing arrangements as well.

Present a Down Payment and/or a Trade-In Vehicle

Try to save as much money as possible toward a down payment and/or trade-in your current vehicle if you own one to increase your likelihood of being granted a loan. A down payment is usually 20% of a vehicle’s value, and it can substantially lower the amount of your fixed monthly loan payments.

Yonkers Automall is a trusted automobile dealership that supplies drivers with a wide variety of exceptional pre-owned vehicles at competitive costs. We are conveniently located at 1716 Central Park Avenue in Yonkers, NY , and our professional sales team may be contacted by calling (855) 700-9198 . Don’t let a string of bad credit automatically stand in the way of obtaining a loan for your next set of wheels. Come on in and speak with us soon!