Can You Get Financed After Your Previous Car Was Repossessed?
Car repossessions do not paint a pretty picture on your credit report. The missed monthly payments plummet your credit score, and you are seen by the lending community as a risky borrower. But this does not mean that all doors are closed for you and you cannot get auto financing any time soon. The missed payment might have been a solitary incident. Maybe something unfortunate happened that strained your finances temporarily but things are back to normal now. While banks may still deny you an auto loan, an opportunity will be waiting for you at buy here pay here car dealerships. Yes, you can still get financed after repossession, and start working on your credit score after buying a used car.
Why buy here pay here dealerships will finance you?
Buy here pay here car dealerships finance customers with bad credit scores. Unlike banks, they accept the credit risk that bad credit score holders carry in return for a higher interest rate. You can approach such a dealer after your previous car has been repossessed due to missed payments and apply for financing if you currently have a stable job whose pay check can cover your monthly payments. You then stand approved; however, the amount of loan that you can take will depend on your credit report or more specifically, on your debt-to-income ratio that will help the dealer to calculate how much monthly payment you can afford and thus, the amount of loan.
How can you repair your credit score after buying a used car?
You will get financed at a buy here pay here dealership. But a few dealerships like Family Auto report your timely monthly payments to the respective authorities to help you improve your credit score. The best part is that you can work on your credit score after buying a used car from Family Auto; not wait for your score to improve, and then buy a used car. Vehicles are necessary for your quality of life. One hiccup in your professional career should not seal your eligibility of buying a used car.
How to get the best out of BHPH dealerships?
In the end, BHPH dealers are also lenders and they will want compensation for taking on your risk through interest rate payments. But you can flip that scenario by paying a high down payment. We recommend that you go through a cooling phase before looking for buy here pay here cars in Anderson, SC, and not apply for bad credit financing immediately after repossession. During this time, accumulate as much down payment you can. Next, stick to affordable used cars that will keep the net price low and improve your chances of getting approved. Lastly, opt for 3-year auto loans. This will not only reduce the interest rate payable but also enable you to improve your credit score further with the debt repaid in a short span.
So, leave the repossession history behind you and buy a used car from buy here pay here dealerships. At Family Auto, you can take advantage of our flexible financing system where the down payment can be as low as $500 and you can set the monthly payment date as per your convenience. Plus, our massive inventory of used cars gives you varied options and you can buy a used car at any price bracket you want.
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