Car buying can be a tricky thing when you have damaged credit. If you go to the wrong place, you could end up overpaying for a car that will give you nothing but problems.
The reasons why you have bad credit can play a large factor in what you can get approved for. This is because not all bad credit is the same. Since your financial background can affect your credit, it is important to work with a lender who understands that not everything is black and white.
Sometimes when you have bad credit, it is because of a personal hardship, and sometimes it is because of missteps that you made financially. Unfortunately, traditional lenders don’t differentiate, and this can result in dealers turning you away even though you can afford the monthly payments on the car you want to buy.
Types of Bad Credit
There are two kinds of bad credit a car buyer can have: Situational and Habitual. In the situational scenario, a life event occurred that left your credit tarnished such as a job loss, medical emergency, divorce, or identity theft. In a habitual scenario, the bad credit is a result of financial mismanagement.
Lenders who are experts at subprime financing can often help those who have situational bad credit get approved for loans that are very similar to prime rate car loans, and therefore, these buyers can be approved for new and used cars with minimal hassle.
For car buyers with habitual bad credit, the process may be a little tougher, but not impossible. The options may be limited to older, used vehicles and have a higher interest rate. However, these buyers who are seeking to get an auto loan should see this not as an obstacle, but as an opportunity to get on the path to a great credit history.
Come to Suburban Auto Finance
The team here at Suburban Auto Finance has the network of lending experts that can handle all types of bad credit situations, so we are certain we can help you. All you need to do is complete the fast and secure online auto financing application. From there, you will meet with us to discuss your financing terms, sign the paperwork, and get back on the road.