Is your credit score lower than you'd like it to be? Well, that doesn't mean you can't get approved to buy a new or used vehicle at AutoFair Nissan of Stratham. People with less-than-perfect credit get approved for car loans every day. We understand the need for a reliable vehicle, and we make every effort to get approval for all credit applicants. Before you apply for a bad credit car loan, though, it's best to have a little knowledge on the subject. Below, you'll find some questions we frequently answer for interested vehicle buyers with credit issues.

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What do I need to do before I apply for a bad credit car loan?

The first order of business is to know what your FICO credit score is and where that number ranks on the scale. You can get a copy of your credit report through any of three national credit report services - Experian, Equifax, or TransUnion - and you're entitled to one copy from each per year. The range of credit scores goes from 300 to 850, with anything under 600 generally considered poor. That said, the cutoff points for those general ratings (very good, good, fair, and poor) vary among lenders. We have built relationships with a number of lenders, including some who are flexible about helping people with credit challenges.

You should also look closely and critically at your budget to determine what you can afford to pay for a car each month for the duration of your loan, making sure to leave enough breathing room for unexpected expenses. Be honest with yourself about which vehicle you can afford and what options you really need right now. Keep in mind that you can always upgrade in a couple of years if you work hard to improve your overall financial situation.

 

Who's going to lend to somebody with a poor credit score?

Having a credit score in the "poor" range does not mean automatic rejection: there are specialized loan programs for credit-challenged buyers. If your score is in the fair to poor range, you can still get approved for a specialized product called a subprime loan (this will carry a higher interest rate). Once you're in your new car, you work toward raising your credit score by paying all of your bills on time, paying down other debts, and even putting a little more money toward the loan principal when you can. Then, when you've brought your credit score up, you can apply to refinance your loan with a lower interest rate.

 

Will I need a cosigner?

While having a cosigner will improve your chances of getting approved for a vehicle loan, it's not essential - nor is it as easy as it may sound. Even if you have a relative or good friend with a very good credit score, they may not be willing to cosign because it presents them with a financial risk. Cosigning legally binds that person to take on your debt if you stop paying for any reason. Since their credit reputation will be put on the line, you should understand if you can't find a willing cosigner.



Common Poor Credit Culprits

Bad credit can result from a variety of situations, but there are some that we see here at AutoFair Nissan of Stratham more than others. Below you'll find a short list of some of the most common credit issues we encounter from customers that might resonate with you.

You're a First-Time Car Buyer

This doesn't necessarily correlate to having bad credit, but typically, young first-time buyers haven't established credit yet and might find it difficult to secure a loan. If this sounds like you, then let our well-trained financial team at AutoFair Nissan of Stratham help you find a loan so you can build up some credit.

Foreclosure

You might be surprised to learn that there are a number of people in the Southern New Hampshire region who have experienced foreclosure due to the state of today's economy and witnessed their credit scores tank. Words can't describe how difficult losing one's home is, and because of this, our dedicated staff at AutoFair Nissan of Stratham will promise to go the extra mile to help you raise your credit score again.

Experiencing a Divorce

If you are dealing with a divorce, the last thing on your mind is taking out a loan on a vehicle, but we know that divorce can sometimes lead to poor credit. Let's try to take some of your stress away by helping you rebuild your credit with an auto loan that you can manage. 

Missing a Loan Payment

Let's face it: at one point or another, many of us have missed a payment on a loan. While it's not the end of the world, you definitely don't want to make a habit out of it, as this will surely cause your credit score to plummet. If you're having a difficult time managing your payments and want to find ways to better organize your finances, we're here to help. Schedule an appointment with our financial professionals today so we can help you figure out some ways to keep up with your payments.

Declaring Bankruptcy

Bankruptcy is another common cause of poor credit that we see at AutoFair Nissan of Stratham. If you've recently filed for bankruptcy and are looking for a fresh start, then locking down an auto loan will be a great place to begin. 

Financial difficulty is a touchy subject, but neglecting it won't do you any good. At AutoFair Nissan of Stratham, we recognize that millions of Americans are stressed financially, even those in the Manchester, New Hampshire area. Devastating financial hardship can often creep up out of nowhere to even the most diligent among us, so it's nothing to be ashamed of. Getting back on your feet is what matters, and our team at AutoFair Nissan of Stratham would like to help you make that first step by securing you an auto loan that you can confidently make payments on. In turn, this will boost your credit score, and you'll soon be back to living the way you like and doing the things you love. So, are you ready to make a change for the better and break free from the shackles of bad credit? Then let AutoFair Nissan of Stratham help you move forward today. 

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