Home Car Buying 101 Car Buying 101 - Credit

Car Buying 101 – Credit

Regardless of the vehicle you are searching for, there are certain things that we feel like all car buyers should know. Some might say these are secrets but we feel like that the vehicle purchase experience is made more transparent if both sides, dealer and customer begin the process with some common shared knowledge.

Car Credit

First, lets have a clear understanding of one of the most important factors in a car purchase for most, credit. For over a third of the US population that means dealing with “bad” credit* which is widely considered to be a credit rating under 600.

We understand that a person is not defined by a credit score however vehicle loan payments are. Many dealerships claim that they have special programs for all credit profiles but before you choose a dealership just because they claim to have guaranteed credit approval, make sure they know how to use that program. Programs targeted at certain credit profiles should be there to help however there are many complexities that the dealer you choose should know how to best use them for your benefit.

There are some steps that you can take if you are considering purchasing a vehicle that will improve that include: paying your bills on time, paying off or settling collection accounts, reducing or increasing the open accounts you have (depending on your situation), consolidating higher interest rate credit cards into a single lower interest loan. You can look at numerous articles that will assist you in improving your credit score such as this one https://clark.com/credit/5-sneaky-ways-to-increase-your-credit-score/

If you need a vehicle right away your Melloy Los Lunas dealer is ready to serve you, regardless of credit. We do offer programs that will help you finance your next vehicle regardless of your past credit history.

*https://www.foxbusiness.com/features/how-many-americans-have-bad-credit

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