Bad Credit Car Loan Options Somersworth, NH

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Bad credit can make it difficult to apply for loans. And in many cases, that's true. However, that doesn't mean it's a be-all, end-all when it comes to auto loans. In fact, we at Granite Hyundai offer bad credit car loans to help you hit the open road despite a poor credit score. For this reason, you can still qualify and get into the car you need. Moreover, this gives you the opportunity to rebuild your credit so you can get more favorable car loan conditions in the future.

While you may not need a perfect credit score to get a car loan, it's still essential to take steps toward improving your credit score in Somersworth, NH. But why should you bother? Let's explore that in detail; keep reading to learn more. 

What is a Credit Score?

Your credit score is comprised of a 3-digit number that represents how you handle loans. It measures your "financial trustworthiness." This information can be found in your credit report. Moreover, your credit score serves as a "prediction" of your behavioral conduct regarding how you handle loans. It considers factors such as:

• Payment history
• Types of credit
• The amount owed
• The mix of credit
• Use of available credit
• And much more

Your "economic credibility" is determined by the credit score on your credit reports. The credit score figures are between 300 and 850. A higher score means you have better credit, which entails a reduced credit risk to the lender, whereas a lower credit score indicates the opposite.

How Bad Credit Can Affect Getting a Car Loan

A bad credit score can make it more challenging to get a car loan. The reason is that your "financial track record" shows the inconsistency of paying your previous loans on time. As a result, many car lenders may be weary about giving you a bad credit car loan. However, that doesn't mean you can't get approved for a car loan with bad credit. 

Many car lenders offer loan programs for individuals despite their poor credit scores. However, qualifying for these types of loans usually requires a co-signer to "vouch" on your behalf. In this way, if you fail to make the payment, your consignee will cover the loan costs. 

Can You Improve Your Credit Score?

Good credit is critical. Why? Because a good credit score (in the 650 to 750 and up range) gives you access to higher credit limits and lower interest rates. However, don't feel discouraged if your current credit score has been compromised by poor financial choices in the past. The good news is that your credit score can be improved over time by making better financial decisions. 

Here are a few simple tips you can use to improve your credit score today:

• Ensure that you pay all your bills on time and in full
• Try to only spend 30% or less of your credit limit
• Regularly review your credit report for inaccuracies
• Keep a long history of credit behavior 
• Inform your credit card companies and banks if you move

These are just a few suggestions to help you get started with bad credit car loans. But above all, be patient. If you've created a financial mess by destroying your credit, it will take some time to dig yourself out. So, ensure that you are patient (but persistent) with the process of implementing better financial habits to improve your credit score.

Granite Hyundai's Credit Restoration Program

Falling on hard financial times can happen to anyone. In fact, it generally will hit all of us at one point or another in our lives. When this happens, leaning on credit cards for financial stability is often many people's only option. And this can lead us to go further into debt, while also hurting our credit score at the same time. Luckily, financial assistance is available.

We at Granite Hyundai offer a credit restoration program. This resource begins with a thorough evaluation of your present financial standing. We assess your credit report and other variables to locate any possible inaccuracies that can be challenged by credit reporting firms. 

Other benefits of our credit restoration program include the following:

• Tailored advice: Personal finance is exactly that: personal. There is no one-size-fits-all when it comes to your bad credit car loans. As a result, you need a tailored solution to your unique circumstance. Our credit restoration program assesses your situation to determine the best-customized approach to resolving your financial troubles.

• Continual support: One of the things that throws most people off from making progress toward improving their credit score is the lack of support. Many times, the situation has you alone attempting to "clean up the mess." And while it can still be done, having continual support and guidance along the way can often be the make-or-break difference. And that's where our credit restoration program can help.

This program helps us guide you, step by step, through the process of applying for an auto loan that's customized for your budget. As a result, you can feel confident you'll have the appropriate payments that match your current financial situation. 

Should You Choose a New Car, a Late-Model Car, or an Older One?

After getting approved for a car loan, you'll be faced with a choice: should you choose a new car, a late-model car, or an older one? It's often best to get an older vehicle. Here's the thing: most vehicles lose 50% of their value in their first 4 years on the road. Used vehicles have already sustained their largest drop in value. As a result, the previous owner has taken the biggest hit, not you. It's more expensive to purchase a new car than to keep an existing one on the road.

So, you can bypass the biggest depreciation hit by simply purchasing an older vehicle. Moreover, you also have a larger pool of vehicles to choose from. As such, you get to keep more money in your pocket while also securing more options for a quality ride.

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Tips for Auto Loan Credit Repair

You can still get approved for an auto loan even if you have poor credit. However, that doesn't mean keeping poor credit around like a pet is a good idea. For this reason, it's important to take corrective steps for credit repair. And here are a few tips to help you get approved for bad credit car loans.

Consider a Shorter Loan Term

A shorter loan term may be a viable option for improving your auto loan credit. Yes, payments will be higher; however, you can rebuild your credit much more rapidly because of the fact that you'll be paying it off faster. As a result, a shorter loan term can help you accelerate the process of improving your credit.

Explore the Option of a Cosigner

Do you have someone who can co-sign for you? A co-signer is a vote of confidence to the dealer. If someone else who knows and trusts you is willing to sign on the dotted line, you'll get the loan and, as a result, have the opportunity to rebuild your credit faster than you would otherwise. However, there is a caveat with this option: you must ensure that you make your payments every month.

Failing to do so will put your co-signer on the hook for those payments. And this has the possibility of straining your relationship with that individual permanently. For this reason, it's absolutely critical that, if you pursue this option, you make your monthly payments on time, every time.