Buying a New Car When Your Credit Is Poor
By Space Coast Daily // May 13, 2020
Getting any type of finance or credit can be a nightmare if you have a poor credit history and low credit score. This includes getting the finance you need to purchase a vehicle.
The fact that you are struggling to get finance does not take away from the fact that you need a vehicle. You may need it for work, to transport the kids around, to visit family and friends, to get to appointments, and more.
Whatever your reasons for wanting a vehicle, it can be very distressing when you cannot find a suitable or accessible financial solution that enables you to purchase it. Fortunately, there are some solutions that are geared toward those with damaged credit, so it is well worth considering these. We will look more closely at these options in this article.
What Are Your Options?
There may be a few options you can consider if you want to purchase a new car, but your credit score and history are poor. The options available to you will depend on your circumstance and even your assets. Some of the options include:
One of the simplest options for getting car finance with bad credit is Buy Here Pay Here, or BHPH, finance. You can often get easy approvals with Buy Here Pay Here finance, and this makes it appealing to those with damaged credit and a low credit score. Not only can you get the finance you need with the right BHPH dealer, but you might be able to get the finance even without a deposit to put down. So, this is one of the options worth considering if your credit is poor.
Secured Loan for Homeowners
If you are a homeowner, you could consider taking out a loan that is secured against your property. The amount you will be able to borrow will depend on the equity level in your home, and the interest rate will depend on the amount borrowed, your credit score, your financial status, and the repayment term among other things.
While this is a possible option, some people are wary of risking taking out a loan against their home, as it could result in them losing their home if things do not go to plan.
One of the other options you may be able to consider when it comes to raising finance to purchase a car is a guarantor loan. These loans are often offered to those who have damaged credit, and this is because there is someone else that is backing the repayments in case the borrower defaults.
Again, this can be quite a risk, as the guarantor will be stuck with the repayments if you fall behind. As such, you may struggle to find a guarantor and you may not like the idea of getting someone else involved.
These are just some of the options you can consider when it comes to getting the money you need to purchase a new vehicle.
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