In South Dakota, as you probably know, lenders just haven’t been been granting auto loans like they did a decade ago. No one knows the frustration of financing a car with bad credit like us. When you apply, we can put you in touch with a car lending company in South Dakota who can approve you for financing, despite your credit.
South Dakota Car Dealerships for Bad Credit
When you have a low credit score, dealer financing is likely the only option you have, seeing as most banks in the area won’t be able to approve you. There are dealers, however, that want to win your business. Compared with a buy here pay here dealer, such dealers offer less expensive rates and more favorable terms. The dealer will use your credit and income to determine which vehicles you are eligible to finance. We suggest you purchase an affordable, fuel-efficient vehicle that has payments amounting to 10% of your income–no more. For people making $2,638 per month, the average among South Dakota residents, this equals out to a payment of $264.
An experienced lending consultant can help you determine how much you’re qualified to borrow, and at what rate of interest. If you want to speak with one, make sure you apply online.
Documentation Requirements for South Dakota Borrowers
Before you sign for your new vehicle, you will need to provide certain documentation.
- Driving License: This allows the lender to double-check that the name listed you your application is you.
- Proof of Income: If you are self-employed who doesn’t have pay stubs, offering income tax returns from the past 24 months will typically do.
- Proof of Insurance: Your lender will require you to purchase full coverage for any vehicle they finance, ensuring you can pay back the loan if there’s an accident.
- Proof of Residence: In case you go into default and the vehicle has to be repossessed by a recovery team, lenders have to be sure that they have your most current address.
- List of Three References: Usually, you don’t have to supply these if you don’t have a bad credit score. If you do, personal references are used by auto recovery agencies if ever your vehicle has to be repossessed.
When you submit your application, we put you in touch with an auto lending consultant who’ll be able to give you all the details.
Buy Here Pay Here Dealers in South Dakota
Car dealers in South Dakota that advertise buy here pay here financing are distinct from regular dealerships in a few significant ways:
- They supply auto loans in house.
- They do not check your credit.
- They want you to pay them every week, often at the lot.
For folks with horrible credit, South Dakota buy here pay here car lots tend to be the only real way to go, even though the interest rates are more expensive than a bank loan. At the same time, they don’t usually report payments to the credit reporting agencies, which means the borrower’s FICO rating isn’t likely to increase even if they pay off the loan as scheduled.
Credit-Building for South Dakota Residents
The vast majority of respected auto lending companies report consumer debt payments to the three main credit reporting agencies–Equifax, Experian, and Transunion–giving you the ability to rebuild your credit. A car loan:
- Offers you the opportunity to spruce up your payment history (35% of your score).
- Multiplies the types of credit in your profile (10% of your score).
Your score won’t rise the day you pay the balance of your loan. Rather, it will increase little by little as you keep on paying your bills on time. To be sure you never miss any payments, consider solutions like automated deductions.