8 Steps For Used Car Buyers With Less Than Perfect Credit To Buy Used Cars Or Trucks

If you have less than perfect credit, or bad credit, financing a used car purchase in Salt Lake City should not be a huge problem (the National Debt is a huge problem, but not your individual credit situation). Lenders might be willing to loan money to those of us with less than perfect credit, but it will cost more. While it is possible to buy a used car with substandard credit, it is difficult. If you decide to borrow, consider these steps to take to obtain a used car loan with poor credit:

• Go online to get a copy of your credit report. There are many websites that offer this service for free. The three nationwide consumer credit reporting agencies are: Equifax, Experian and TransUnion. Print the reports and be ready to answer any questions about adverse credit history to the lender. Check your credit reports for potential inaccuracies, correcting mistakes with each bureau.

If your score is below 600, expect some trouble securing credit, at least with favorable terms.

• Determine your budget. If you are set on an expensive car, your chances of obtaining a loan can be diminished. Even if you are approved for financing, your monthly payment could weigh you down. Ideally, you should determine a budget based on income and expenses. A good online budget calculator can be found at http://www.bankrate.com.

Be realistic. When buying a used car, you not only have to consider monthly payments but insurance and maintenance. Up-front costs include vehicle registration, taxes and tags and in some areas, property taxes. Include those costs in budget planning.

• Arrange financing through the dealership. At our dealership, West Valley Auto Plaza offers creative car or truck financing options. See this video on how our creative financing options help you buy the used car or truck you need, without embarrassing hassle. Business is booming at our dealership, because of filling your used car and financing needs.
  
• Apply for credit at your local bank, where they know you and your credit history. If you can, become a member of a credit union. They are often more lenient in their lending policies than banks and often have their own used car auto financing department.
• Shop for a loan. Commercial banks, credit unions and other financial institutions are potential lenders. Before applying, explain to a loan officer your credit history and ask what rate is available. Do not authorize access to your credit report as that "pull" will lower your score. Only after you find a lender with a potentially favorable offer, fill out the application and give it permission to review your credit. Once you are preliminarily approved, a loan underwriter will likely follow with a formal approval.
• Show the lender mitigating circumstances. Demonstrate proof of steady and sufficient income and residence for at least one year as well as a telephone listing in your own name. Be prepared to have a large cash down payment, about 50 percent of the purchase price, to be considered for a new loan.
• Consider getting a co-signer. Choose someone you trust, who has sufficient and verifiable income and excellent credit. Remember that if you default, your co-signer is fully liable for your debt, so choose wisely.

Come out to our dealership-3899 South Redwood Road, West Valley City. Visit us online at WestValleyAutoPlaza.com, or call us at 801-886-1700.

West Valley Auto Plaza’s goal is to get you back on your feet in a good reliable pre-owned vehicle that you can afford at a fair price regardless of your credit situation. This is what we’ve done for over 11 years now, and this is what we’ll do for you. Feel free to shop around and see what others have to offer. We know you’ll end up choosing us, because we are the best out there, and we won’t jerk you around!