Looking for a new or preowned car? If so, chances are you will need a car loan to get yourself in the driver’s seat of the car you want. Rather than waiting until you’re in a high-pressure situation at the dealership, we allow you to get approved for financing ahead of time. Experience the convenience of working with a dedicated finance consultant who can address your questions and set up your loan.
Bloomington Car Dealerships for Bad Credit
Be sure to stay away from buy here pay here car lots, which have been criticized time after time for deceitful lending practices. There are larger dealerships that serve people who have less-than-perfect credit and provide an improved financing experience. As with all subprime loans, certain things are to be expected:
- Interest rates that are more expensive.
- Down payments that are more substantial.
- Payment periods that are shorter.
On the other hand, they will line up your financing through banks and finance companies that supply information to the credit reporting agencies–imperative if you wish to boost your credit score. At Motive Auto Finance, we work with many such dealerships, and when you submit your application, we work hard to match you with one who wants to fund your loan.
Picking a Vehicle: New versus Pre-owned
Have you thought about whether you’re going to buy a used or new vehicle? It’s something to think about. Brand new cars and trucks have much lower rates of interest. That said, they cost far more than their late-model counterparts, and they require bigger down payments.
|New Car||Pre-owned Car|
|Age||New||3 Years Old|
|Duration||5 years||4 years|
|Total Amount Paid||$11,932||$6,175|
Buy Here Pay Here Dealers in Bloomington, Illinois
In house financing, otherwise referred to as buy here pay here financing, has grown in recent years, mainly because so many consumers’ credit ratings were hit by the economic crisis. Dealers like these will approve practically anyone, regardless of their credit, but you will find disadvantages. Sadly, you can look forward to inflated annual percentage rates, massive down payments, and vehicles that are too expensive for their age and condition. And if that weren’t enough, these car lots don’t work with the credit reporting agencies, so you could make every single payment month after month without any boost to your FICO score.
Credit Recovery for Bloomington Borrowers
There are three major credit bureaus: Transunion, Equifax, and Experian. More often than not, lenders report your payments to these firms, making it possible to boost your credit score. But keep in mind, this impact isn’t automatic. You must pay back the loan as agreed, making every payment on time.
Never miss a payment, as this can have a dramatic effect: a reduced FICO score. Of course, the benefits to an improved score are considerable:
- Minimized APRs.
- Decreased insurance rates.
- Down payments often waived.
- Much better chances of credit acceptance.