When you have bad credit, securing a traditional loan to purchase a car is a challenge. A bad credit auto loan provides you with the opportunity to purchase a car so that you can drive to work or school. Choose a vehicle that will meet your needs, and apply for this particular type of auto loan to make your purchase. Consider these two ways in which bad credit car dealerships are willing to give you a chance at boosting your credit for future needs.
Establishing a Good Payment Record
The credit bureaus keep track of your record of payments. By taking out a bad credit loan at an auto dealership, you have the opportunity to establish a good payment record. By making 100 percent of your payments in full and on time, you can raise your credit score. After about six months of on-time payments to your auto loan, your credit score will begin to rise.
Keeping Your Debt Load Low
Auto loans of this type allow you to purchase an affordable vehicle. The amount of your loan will be relatively low, and your monthly payments will be affordable. When you have a low debt to income ratio, your credit score will also begin to improve. Each time you make a payment on the auto loan, your debt load will decrease. This leads to a further improvement in your financial status.
Welcome to Dick's Hillsboro Hyundai, serving the greater Portland, Beaverton and Vancouver, WA area. We sell new Hyundai vehicles, used cars, as well as Hyundai parts and service to all our Hyundai customers looking for great prices and a great buying experience. We have auto financing experts eager to provide financing for your new car, or we can assist in used car financing, no matter if you have no credit or bad credit.
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