Get a New Car, Even if You Have the Bad Credit Blues

So you need a car but have bad credit? Don’t worry; bad credit car loans are highly prevalent in today’s world, so you are not the only person in this boat. Nearly 25% of Americans have issues with their credit. As long as you prepare yourself and follow the right course of action, the Southtowne GM Superstore should be able to purchase the car you want as well as receive a bad credit car loan.

As I just mentioned, preparation is the key. Your first course of action should be to review your credit history so that you can ensure that there are no errors. There are many free credit websites out there you can use to help you.

The next important step to obtaining a bad credit car loan is to determine how much you can truly afford to pay for your car. It is absolutely essential that you be honest with yourself about how much you can afford and don’t let your eyes get bigger than your wallet. You should have a number in mind for how much you can afford for both a down payment and monthly payments.

Now that you have taken care of the preparation, you must be prepared to provide proof of employment and income so that the lender can have all of the information in front of them, which will facilitate your bad credit car loan. The lender may not always ask for these documents, but it’s better to be safe than sorry when applying for a bad credit car loan.

Once you have followed the aforementioned steps, you must take extra steps in the future to ensure a clean credit history. You must make it a priority to make on-time payments for your bad credit car loan so that there are no bad marks on your credit history. You will also want to avoid car title loans (or any other type of loan for that matter) in the event that you need cash. It is much more logical to consider a refinance car loan.

If you still have questions about bad credit car loans, you can find answers and other great information here at Southtowne and through other mediums, such as forums and reviews of companies. You can also get a lot of help through loan companies. Although your credit may be a little worse than you would prefer, these companies still want to be able to make loans work since that is how they make money so they will certainly be willing to discuss bad credit car loans with you.

So take a deep breath and don’t worry! You can still get a car.

Atlanta GM Dealer, Should You Use A Co-Signer To Secure A Car Loan

We all know who co-signers are and what they do, so we won’t go over the definition. Okay, that statement is only half true. We all know who co-signers are, but do you know how important they can be? Do you know what their obligation as co-signer is? This is important to know for any potential car buyers who are looking to have somebody co-sign their contract or for somebody who is being sought after to co-sign a contract. Here’s the bottom line, the creditor for your car loan may allow you to have a co-signer on the finance contract with you in order to make up for any shortfalls in your credit history. This is a good thing because it opens up criteria for issuing the loan. Don’t abuse the trust and good will of your co-signer by purchasing a vehicle you know you won’t be able to afford.

A co-signer has equal responsibility for the contract, not some, not most, but equal responsibility. If you skip on your payments, your co-signer is legally obligated to cover your debt. Further, this contract and any missed payments will show up on the co-signers credit history. Therefore, if being asked to be a co-signer, make sure that this is somebody that you have a large amount of trust and confidence in, because it could have dire effects on you if this person cannot hold up their end of the loan. Often times, co-signers are eventually asked to repay the obligation, so be certain that you can afford to do that before signing anything.

Have a question about an easy way to get a car loan? Ask your Atlanta GM dealer!

Do you know how to improve your credit score?

“So, how do I improve my credit score?” It’s not something you learn how to do in school and, to be honest, it’s sort of assumed that everyone just “knows” how the whole credit scoring thing works. Here’s a quick, short explanation:

People who utilize credit, from credit cards to auto loans, have three standard credit scores tallied separately by the three major credit reporting agencies.  The scores are known as FICO scores (Fair Isaac Corporation). The scoring ranges from 300 to 850.  The most current national median score is roughly about 675.

Let’s say you need an auto loan but have a low credits score.

Here are a few key principles you can follow to raise your credit score.

1. The most important way to improve credit scores is also the least complicated.  Pay your bills in full and on time. Your overall history of making payment on your current bills accounts for about 35% of the FICO score.  Missing credit card payments or submitting the minimum due each month will immediately lower scores, as will any debt collections or bankruptcy filings that show up on your credit report.

2. Build up an active and lengthy credit history.  Don’t close out all of those old credit cards! Keeping them open builds your credit history.  This makes up about 15% of the FICO score.  Keep a few dormant accounts active.

3. Don’t open new accounts within 60 days of making a major purchase.  This results in about 10% of your score.  Taking out new credit lines raises red flags because it makes you look riskier. Just be smart and think twice about your future purchases and what looks likely to take place over the next few months.

4. Maxing or topping out your credit cards will drop your score like a rock.   Even using 50% or more of your limit can cause problems because it increases the risk that you may not be able to repay.  If you have five credit cards with a $5,000 credit line each, for example, it’s not wise to carry a balance of more than $2,000 per card.  It’s better to carry smaller balances on several cards than to pile everything onto one card.

5. Get a copy of your credit report and make sure your credit report is accurate.  This is very important.  Since credit scores are based on credit reports, it’s very important to make sure the information in your reports are fee of errors and fraud.  Federal law gives you the right to get a free report from each of the major credit bureaus once per year.

6. Have a wide variety of credit experiences and loans, over time.  This is called diversification and you’ll get credit for having a variety of loans. It’s better to have an assortment, including installment plans like auto loans or mortgages rather than simply credit cards.

Sounds simple enough. Can any one add to this or recommend some more about this? If you think you need help with your credit because you need a new car, see the Southtowne General Motors Superstore.