3 Tips When You’re Financing with Bad Credit

Aug 8, 2019

Bad Credit Financing in Fall River MA

Shopping for a new or used vehicle can be stressful at the best of times, and so when you have bad credit added to the mix, it makes things a lot more difficult. It can be hard to know what you can afford, what you should do to get the best deal, etc. when you’re working with bad credit. Thankfully, our agents at Route 6 Auto Mall Kia are here to help! Here are three tips we have for shopping with bad credit!

1. Fix Your Score as Much as Possible Beforehand

Avoid additional bad credit items, pay off outstanding and past-due accounts, talk to lenders and credit card companies about financial options, whatever it takes! You can even discuss credit report errors to fix issues and add positive information to your credit report, allowing you to boost that number and make you a more appealing financing prospect. This is a long-term, hard-fought, goal, but a good one to have.

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2. Check the Average Interest Rate

You can find out what the average interest rates on the market are by going online, and we suggest doing so no matter if you have good or bad credit. This lets you see if the dealership is giving a decent rate despite your credit score. Typically, your rates will be higher with bad credit, but you should be wary if you see a rate that’s double or more than the average.

3. Make a Larger Down payment

Financing departments and banks always like to see that you are willing to put some skin in the game, so to speak. You can do this by putting a larger down payment, which will offset a lot of the expenses and help you get a more favorable interest rate. Around 10% to 20% is considered a good amount for a down payment.

These are just three of many great financing tips we have to offer you! To learn more about financing or financing with bad credit, or to see our vehicle inventory, please contact us today or visit our website’s various pages!