Financing a Used Car with Bad Credit

Here at New Holland Chrysler Dodge Jeep Ram, we believe everyone should have access to a quality vehicle no matter their current finances.

If you’re currently in the market for a dependable used sedan, truck, or SUV but experiencing limited resources, our finance center is ready to help. To learn more, continue reading and don’t hesitate to contact us with any questions!

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Why Is My Credit Score Important to Financing a Used Car?

Think of your credit like a financial snapshot. When you go to apply for an auto loan, the bank or lending agency will use your current score to determine the amount of money they can safely lend you.

It almost goes without saying the higher your score, the more likely a lender will be to offer favorable terms. A high score can also help secure a better interest rate since you pose a lower risk of defaulting on your loan.

What Determines My Credit Score?

While your credit score fluctuates throughout your life, there are five factors that determine your score at any given time. These include:

• Payment History: Consistently paying your bills on time is the number one way to maintain a decent credit score.
• Amount of Debt: The second most important factor is the amount of debt you carry month over month.
• Credit History: A borrower with a longer history of using credit will often have a higher score than someone who’s new to the world of lending.
• Credit Mix:  Auto loans, home mortgages, and student loans show lenders that a borrower can handle multiple payment plans. One exception is having high credit card debt that can negatively impact your score.
• New Credit: When planning to make a large purchase, like a used car, it’s best to avoid opening a new line of credit in the months leading up to your purchase.

How to Finance a Used Car with Bad Credit

If you’re currently in the process of building your credit, you still have several paths to secure an auto loan.

If you don’t already know your credit score, take advantage of several third-party sites, like Experian or Credit Karma, to retrieve your info. Here, you can also learn tips on how to improve your score and contest any discrepancies.

If it fits your monthly budget, you also should also consider making a higher down payment or shortening the loan period. This shows lenders your willingness and ability to pay back the loan in full.

Finally, ask whether you might qualify for a new model or lease. It might seem counterintuitive, but you might be able to secure a lower interest rate or snag a special incentive!

Special Auto Financing

Apply for Used Car Financing Today

The best piece of advice we can offer is to speak directly with our financing specialists here at New Holland Chrysler Dodge Jeep Ram. Providing decades of experience, they often can leverage their relationship with local lenders to secure terms that fit your needs.

To get a head start, complete a financial application through our secure site. Before you know it, we’ll have you hitting the streets of New Holland, Lancaster, and Reading in no time!