At AutoOne, we understand that buying a new car can be difficult if you're struggling to improve your credit score. While hard times can fall on the best of us, trying to bring your credit score back up once it's been hit with a blow is frustrating. For many drivers, buying a new car is necessary and sometimes complicated by less-than-stellar credit history. If you're in the Lancaster, Pennsylvania, area and are suffering due to a bad credit score, our finance team is here to help.
Gone are the days when you were required to give up on your goal of car ownership because of a bad credit score. At AutoOne, we understand the importance of giving you a second chance and allowing you to redeem yourself. In fact, securing an auto loan and making regular payments is a great way to help bring your credit score back up. Let's look at the steps you can take if you live in the Lancaster area and have bad credit to help you drive home in your own car as soon as possible.
Improve Your Credit Score Before Shopping for a Car
If you have a little bit of time before you need to purchase a new car, it can help tremendously to take steps to improve your credit score before you start shopping. If you have a really low credit score, you should see great improvements in a relatively short time if you take action.Â
In fact, it's much easier for someone with bad credit to see a jump of 100 points or more than someone with good credit. The reasoning is that people with bad credit have much more room for improvement, so even relatively small steps can lead to a huge jump in the right direction regarding your credit score.
Pay Your Credit Cards Strategically
When it comes to paying off credit card debt, not all payments are equal. To determine which credit card you should pay off first, you need to examine the total credit limit on each card and how much of that limit you're currently using. Your credit score will suffer if you use more than 30% of your total credit limit. If you can decrease the amount of credit you're utilizing to less than 30%, you'll see an improvement in your credit score.Â
Alternatively, if you've recently experienced an increase in income, you can call the credit card company and ask for a higher credit limit. This will also decrease your credit utilization.
Ask To Become an Authorized User
If you have a close friend or family member with a high credit card limit, you can ask them to add you as an authorized user. Doing so will add their credit card to your credit score, thus reaping the benefits of a high credit limit with low utilization. The person helping you out doesn't even have to give you their credit card, account number, or any access to using their card, so it's a low-risk move on their part.Â
Pay Your Bills on Time
Late payments are one of the most common causes of decreased credit scores. Even one late payment can stay on your credit report for over seven years, which means that missing multiple payments can greatly impact your credit score. If you've gotten behind on your payments in the past, now is the time to put a stop to it. Set up automatic payments for your accounts or add reminders to your phone so you don't forget to make payments on time.
Reach Out for Assistance
A variety of resources are available to help you tackle a bad credit score. You can start with online credit counseling through reputable companies such as Credit Lab or DebtWave. Additionally, there are certain financial assistance programs available to help you overcome your current financial hardships.Â
Establish a Budget and Price Range Before Shopping for a Car
Before shopping for a car, you should create a realistic budget to determine how much you can afford to spend on a car payment. Keep track of your total income and spending to see how a car payment will fit into your finances. Remember to be realistic. You don't want to push yourself into buying too expensive of a car because then you'll risk missing payments and further damaging your credit score.
We have several online tools to help you with your budget. First, our payment calculator will help you see exactly how much your car will cost you each month. Next, we also have a tool to help determine the trade-in value of your current vehicle. This trade-in amount will help increase your down payment, thus lowering your monthly payments. These two tools will give you the knowledge you need to understand what you can afford when you start shopping for your car.
Get Preapproved Today
At AutoOne, we want to give you the peace of mind that comes with being preapproved for a car loan before you even take your first test drive.
We partner with Credit Acceptance to offer car loans to drivers struggling with a bad credit score who need a new vehicle to help get them back on their feet. We want to make the credit approval process as simple as possible, meaning you can apply online today and receive notice of your approval within 24 hours. Alternatively, you can apply in person and receive approval in 30 minutes or less.
Getting preapproved will paint an even clearer picture regarding what you can afford when shopping for your next vehicle.Â
Don't Let Bad Credit Get In Your Way
We pride ourselves on offering affordable and reasonable auto loans to all types of drivers, even those struggling with bad credit or no credit. If you're looking for your next vehicle, be sure to check out our wide selection of used vehicles at an affordable price. Our finance team would love to help you drive home in your dream car today.
A Woman Buying a Car by Antoni Shkraba is licensed with Pexels License