4 Steps to Buy a Car with Low Credit in Hannon

4 Steps to Buy a Car with Low Credit in Hannon

Posted on March 28, 2022

These tips are intended for anyone who wants to buy a car with low credit in Hannon. Don't feel ashamed about having credit challenges; it could happen to anyone at any time.

Our Hannon car loans team are going to show you how credit works and what you need to do to rebuild it.

Step 1: Accessing and reviewing your credit score

The first step is triaging your credit to understand what is causing your score to drop into the poor range.

Next, sign up for TransUnion and Equifax to get free access to your credit score and reports.

When you have gained access to these reports, you can look them over to find out what is causing your low credit score.

A potential cause of your low credit score is negative errors inside the report. Items stay inside your credit report for up to seven years.

Suppose there are negative items, especially errors. In that case, you should go through the dispute process on the credit reporting agency's website to get the items removed.

This problem is not going to solve itself, so be sure to dispute any and all errors on your credit report.

Step 2: Rebuilding your credit score with these best practices

After you have dealt with the errors inside your credit report, the next thing you need to do is work on rebuilding your credit score.

Start by paying your delinquent accounts and bringing everything up to date. It may take a little time, especially with the tough economic times we are all facing.

While you are working on bringing your currents up to date, you can reduce the total amount of debt you are carrying to below 30% of your total available credit.

Bringing down the total amount of debt you are carrying will boost your score and reduce the total amount of money you are paying to service this debt.

You might consider opening an additional credit account to raise your total amount of credit, this strategy will take a little time to generate positive results, but it will help improve your credit score.

Having a stable income is key

Having a stable income will make all the difference when trying to get a poor credit car loan. Lenders will give you a chance, but your income needs to be verifiable and substantial; you can prove this by showing the lender your latest payslips.

In addition, the payslip should be enough to meet the lender's underwriting requirements.

Where to get the best car loans for borrowers with poor credit

We covered how to rebuild your credit, but you can still get one if you need a car today, even if you have poor credit.

First, you need to contact a local dealership that specializes in this type of financing; when you meet with the dealership, they will assess your situation and then find a lender that will give you a fair shake.

The dealership is going to provide you with customized suggestions on how to revamp your credit so your score will increase quickly.

When you follow all of these suggestions, you will be able to buy a car with poor credit and begin living your best life.

We’d love to help you buy a car with low credit in Hannon. Simply fill in the form below and we’ll get back to you ASAP or see our selection of new and used cars at our Burlington dealership. 

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