Overview
For most people, a vehicle purchase includes getting approval for a loan. Those with below-average credit scores (or who haven't established a credit history yet) will find it more difficult to get approved - but there are definitely some options out there. Working with AutoFair Subaru's experienced financing team can take away any uncertainty you're feeling and make the process smoother and less stressful. There are loan programs out there to fit a bad-credit situation - you just may need some professional guidance to find the one that works for you.      Â
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What is a FICO credit score? Why is it so important?
Your FICO credit score is a three-digit number that indicates your credit quality based on your financial behavior (both good and bad) dating back to the first time you were issued credit. It will also list if you've ever filed bankruptcy, had a vehicle repossessed, or lost a property to foreclosure. The FICO system evaluates everyone's credit based on the same factors, ensuring a level playing field for all. The information in your credit reports gives potential lenders a way to assess how likely you are to repay your loan so that they can decide whether to extend credit to you. A credit score can range from a low of 300 to a perfect 850, and there are five categories: poor, fair, good, very good, and exceptional.
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Is there a special kind of loan for people with credit challenges?
You've probably heard of subprime auto loaning: lending specifically for those with less than stellar credit. If your credit score is lower than 620, you are within subprime loan territory (although individual lenders can specify their own cutoff points). The caveat will be a higher interest rate, because the lender assumes more risk with a borrower who hasn't proven they can consistently pay their bills. That said, the goal is to get the loan. Once you've done that, you can work to raise your credit score and eventually refinance to a lower APR. At AutoFair Subaru, we work with a variety of lenders, several of which offer subprime loans.
How can I improve my credit score?
Bringing up your credit score will take some discipline in a few related areas. You'll need to limit any revolving debt to the necessities, always pay your bills on time, pay off as much debt as possible, keep the balances on your credit cards low, and don't apply for credit you don't need. You should also closely monitor your credit report to make sure it's accurate. The three nationwide credit reporting companies are Equifax, Experian, and TransUnion, and you are entitled to a free credit report every 12 months from each of them.
What can I do if I see an inaccuracy in my credit report that's affecting my score?
It's very important that you get the error corrected. You'll need to contact the creditor and provide them with proof that you've paid off the debt in question. Be sure to check all three of the credit reporting agencies' reports for errors and take the steps to correct each one that you find.
Common Credit Issues
Credit issues can arise from a variety of situations, but there are some that are more common than others. Check out the list below to see some of the most recurrent credit issues we deal with here at AutoFair Subaru.
Divorce
Securing an auto loan after a divorce might seem impossible on top of everything else you're dealing with. Let us help you through this difficult time by finding an auto loan that works for you.
Filing Bankruptcy
This might surprise you, but filing for bankruptcy happens more often than you might think. With that said, if you're someone who has filed for bankruptcy and is looking for a way to get back on sure footing, let us help by finding you a feasible auto loan.
Dealing with Foreclosure
This also may surprise you, but there are several people in Lawrence, Haverhill, Andover, and the surrounding area who have lost their homes due to foreclosure. While this situation is devastating, our financial team at AutoFair Subaru just might be able to help you improve your credit so you can get back to living well.
You're a First-Time Buyer
As a first-time car buyer, it's likely that you haven't established any credit yet. But we all have to start somewhere, right? Let AutoFair Subaru help you make that first step.
Forgetting a Payment
It happens to the best of us sometimes. Whether you didn't see a bill in the mail, or your automatic payment didn't register, missing payments is actually fairly common, but it's a surefire way to lower your credit score. So, if you're interested in learning about how you can ensure payments are made on time, or you simply want to go through your credit situation to see how you can improve, don't hesitate to schedule an appointment with our well-trained financial advisors.
Our team at AutoFair Subaru of Haverhill knows that financial difficulties can strike out of nowhere, oftentimes without warning. Knowing this, we want to help our customers get back on their feet by giving them the opportunity to rebuild their credit. There are so many factors that can contribute to a low credit score, be it losing a job or missing a loan payment. Whatever the reason may be, we just might have a solution for you. If you've recently experienced a financial hardship and are looking for a way to get back on solid ground, then come on over to AutoFair Subaru of Haverhill. Our expertly-trained financial professionals will help you secure an auto loan with a manageable interest rate, and when you begin to make payments on time, you'll quickly see your credit soar. So, what are you waiting for? Let AutoFair Subaru of Haverhill help you get back to financial security.
