Low Credit Auto Financing Solutions

Less Than Perfect Credit Doesn’t Deter You From Getting the Financing You Need at Balise Volkswagen

Maybe this is your current situation: You need a vehicle, but your credit score is not where you’d like it to be. Although you may feel like giving up after being turned down for an auto loan, don’t lose hope: there are solutions out there. Bad credit loans give folks a chance when they’re in the midst of temporary financial straits, making it possible to get behind the wheel of a good, reliable car. Let’s answer some of the common questions we get from credit-challenged vehicle shoppers.

Why Do We Offer Car Loans to People with Challenged Credit?

In short, we’re understanding. We know that there are a number of situations that affect your credit, or that you’re doing your best to build credit, but it’s not a simple process. That shouldn’t keep you from being able to get a new vehicle or financing for it. We’re here to help. We offer a variety of lease and car loan options for those with credit that is less than perfect. We just want to help drivers from Warwick, Pawtucket, and Providence get a reliable vehicle, and have the plan in motion to pay for it. No tricks or gimmicks, we simply believe in helping all who are looking for a new car.

I need to buy a car, but my credit score isn’t great. Where do I start?

First off, if you haven’t already obtained at least one copy of your credit report, do so now. There are three major credit bureaus – Equifax, Experian, TransUnion – and you’re entitled to a free copy of your credit report once annually from each of them. You’ll also need your credit score (you may have a credit card that furnishes this information; if not, you can also get it free online). Credit scores fall into one of five categories: Poor, Fair, Good, Very Good, and Excellent. If yours is in the Poor or Fair range, you will likely need a special kind of lending – a bad credit (a.k.a. subprime) loan – so that you can buy a vehicle.

But I’ve been rejected recently. Are you sure I’ll be approved even with a subprime loan?

You’ll still have to go through the application process, of course, but the chances are good unless your credit situation is severely problematic. Our financing department works with a number of flexible lenders who understand that people can easily fall in to challenging financial times, especially these days. That’s why more and more of them offer loans with special terms to help good people get back on their feet during tough times.

How are subprime loans different from standard loans?

It depends on the individual loan product, but you can expect a slightly higher interest rate, since the lender needs to cover the risk of lending to someone whose credit history has recent flaws. Some lenders will also require that the payments be made through direct debit, and a few structure the terms with weekly payments rather than monthly. The good news – besides the fact that you’ll finally be driving that new car – is that each on-time payment will slowly but surely help you rebuild your credit, as long as you don’t open other credit lines elsewhere in the meantime.

Is there anything else I can do?

If you absolutely need a vehicle now, then by all means give us a call and we’ll get the application process started. But if you can put off your purchase for a few weeks or months, you can use that time to save more money for a down payment, since more money down means less money borrowed. Or you can put more money toward paying off your existing debt, thereby lowering your credit-to-debt ratio and making you more attractive as a borrower.

As long as you have the discipline and determination to make your payments on time and resist unnecessary spending, you’ll improve your credit situation steadily. If you have any questions that we haven’t answered here, feel free to get in touch with one of our financing representatives, who will be delighted to help you.

More Common Credit Financing Questions

  • Can I get a car loan with challenged credit? Challenged credit doesn’t have to deter you from buying a new vehicle. Our team is happy to work with you to find you the right auto financing option.
  • Will buying a car hurt my credit? No. When you buy a car it can actually improve your credit, especially if you make your payments on time because that shows you’re less of a risk to loan officers, which helps you in the future when you need other financing.
  • Will my interest rate be higher with lower credit? That depends. Our finance team works with many different banks and credit and financial institutions to find you the best rate possible, because that’s our goal.
  • Can I get a loan for a used car? Yes. We help finance for all vehicles, both new and used, so you can choose which type of vehicle appeals most to you.
  • Can I use my trade-in as a down payment? Yes. You can you use trade in as a down payment. But, if there is a lien on your vehicle that you’re trading in, you might have to put down additional money.
  • I’ve never had credit before. Can I get pre-approved? Yes, we’re happy to work with first-time buyers. Our finance team will help you come up with a plan that works for you.
  • What will my new monthly payments be? Your monthly payments are based on your credit and what type of car you’re buying. New, low mileage vehicles qualify for extended terms. Our finance team can give you a more accurate idea when you discuss specific models with them.
  • What are the next steps? You can apply for credit on our website, and one of our finance team members will contact you and discuss all the options you have, and work to help you find the best terms possible.

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