Credit scores are vital when it comes to financing a car in Edmond, and approval rates for bad credit car loans are much lower than they used to be. Not to worry. We know the worries that Edmond consumers with bad credit have to deal with. When you apply, we can set you up with a lending expert in Edmond.
Edmond Car Dealerships for Bad Credit
Those dealerships that provide loans directly advertise themselves as in-house financing, tote the note, or buy here pay here dealers. Chances are you’ll have a better experience with car dealer that can offer you a bad credit Edmond auto loan through an accredited lender. As a general rule they are a safer option, as they are more heavily regulated than smaller car lots with in-house financing. In contrast to buy here pay here dealers, these dealerships offer:
- Interest rates that are fair.
- Down payments that are affordable.
- New vehicles, instead of only pre-owned ones.
The exact models you can purchase will be based on your monthly income and credit. We suggest you purchase a vehicle that won’t strain your budget, having a payment that’s equivalent to 10% of your income–no more. For people who earn $2,316 per month, the average among Edmond residents, this is a payment of $232. Submit your application to speak with an auto lending specialist about how much you can borrow.
Buying a Car in Edmond with No Down Payment
Do you want to purchase a new car or truck, but you haven’t got any money down? When you buy a car, you’re in a race with depreciation. If the your car or truck is worth less than what’s owed on it, then you are under water on it. A down payment works against depreciation–particularly crucial if you’ve got a high interest rate. While there are no money down car deals in Edmond, we normally encourage down payments, in particular when you’re going to pay an expensive interest rate.
Edmond Buy Here Pay Here Dealerships
Folks in Edmond and throughout Oklahoma resort to buy here pay here dealers, often called your job is your credit dealers, assuming they will only be able to get approved without a credit check. Not so. These dealers will finance nearly anybody, regardless of their credit, but there are issues.
Drawbacks include outrageous lending rates and down payments, along with overpriced vehicles and weekly payments Even worse, these dealerships seldom report to the credit agencies, and that means you could make all of your payments when they’re due without making improvements to your FICO score.
Will This Supercharge Your Credit Score?
When you don’t miss payments, financing a vehicle can in fact help you re-establish your credit. Financing a car:
- Provides you with the opportunity to revitalize your payment history (35% of your score).
- Improves your credit mix, or the array of credit types under your belt (10% of your score).
Missed payments, by contrast, can decrease your FICO score, and in a big way! Of course, the advantages of an increased score are monumental:
- Decreased rates of interest.
- Cheaper insurance rates.
- Elevated loan amounts.
- Minimized risk of application rejections in the coming years.