Banks and dealers will perform a credit check when deciding whether or not to fund your loan, and a bad score could result in:
- Your application being denied.
- High APR.
It’s imperative to find a lending company that wants the opportunity to fund your loan, whatever your credit. We’re very proud to work with an extensive network of dealers and finance companies that provide car loans to people with all sorts of credit histories, not just those with pristine credit. Your vehicle finance professional will help you:
- Review interest rates.
- Choose your lending company.
- Make an appointment to choose your vehicle.
Visit here to get started.
Bad Credit Car Dealers in Chico, CA
Don’t let credit keep you from the driver’s seat of your next car. We have access to dealers all across California who are willing to compete for your business. In comparison with a buy here pay here dealer, such dealers can offer more affordable rates and better terms. Your credit and income dictates which cars you’re eligible to finance. Here’s an example based on an income of $1,396 per month, the average in Chico:
|Credit History||Multiplier||Loan Amount|
|Temporary Bad Credit||8||$11,168|
This is nothing but an approximation. You may not get to borrow this much, depending on such factors as your credit card debt, housing payment, and the type of income you have.
An automobile finance professional can help you determine how much you can borrow, and at what interest rate. If you want to talk to one, be sure you submit your application.
Is a New Vehicle a Good Idea?
New and used cars each have their own benefits. You can finance a new car for longer, and at a lower rate of interest, but you end up paying considerably more in the long run.
|New Car||Pre-owned Car|
|Total Amount Paid||$15,437||$7,989|
Buy Here Pay Here Car Lots in Chico, CA
Referred to as buy here pay here, tote the note, or your job is your credit car lots, these businesses typically have a few main features:
- They approve auto loans on location.
- They rarely check your credit.
- They require weekly or biweekly payments, often at the lot.
Sometimes folks with really low credit feel like a buy here pay here car lot is the only place that will be willing to finance them. However, the cost of your vehicle will be inflated on account of higher rates of interest, and it’s less likely that your credit score will get better since these dealers rarely report to the credit reporting agencies.
Will This Improve Your Credit?
Nearly all auto finance companies report consumer data to the major credit reporting agencies–Equifax, Experian, and Transunion–which provides you the opportunity to rebuild your credit. When you make payments each month, you show creditors that they’re likely to have the funds they lend you repaid in a timely manner. Late payments, by contrast, can decrease your credit score, and severely! Of course, the benefits of a better score are enormous, including cheaper interest rates and insurance premiums, along with smaller down payments and much better terms.