null Can I Buy a Car with Bad Credit or No Credit?
Your credit history is a key component to getting approved for an
auto loan or financing. Because of this, car buyers with credit
problems may have difficulty finding credit approval when seeking to
purchase a vehicle.
Although buying a car with bad credit or no credit history may be a
challenge, it’s not impossible. Here are some steps you can take:
Check your credit Before you start visiting car dealerships, you can check your credit report and credit score.
Your credit report is a document containing your personal
information, credit account history, credit inquiries and
information gathered from public records, which may include
bankruptcies and open/closed accounts.
You can access your credit report for free once every 12
months through the three major credit bureaus — Equifax, Experian
and TransUnion. The information found in your credit report is
used to calculate your credit score, which is a numeric value that
informs potential lenders and finance companies about your creditworthiness.
According to Experian, you can check your credit score through
your bank, credit card, a credit score service such as Credit
Karma, or any of the three major credit bureaus.
Improve your credit Once you’ve checked your credit report, you’ll have a better
understanding of what’s impacting your credit and what you need to
do to improve your credit. According to the Consumer
Financial Protection Bureau, errors found in your credit report can
have a negative impact on your credit score, which could harm your
ability to get new lines of credit. Common credit report errors
Mistakes in your name, phone number or address
Loans, credit cards, or other accounts that are not yours
Reports showing late payments when you paid on time
Accounts you closed that are incorrectly listed as open
You can dispute and fix mistakes in your credit report by
contacting the credit reporting agency and/or creditor that
provided the account information. A simple fix in your credit
report has the potential to make a difference in your credit
score, so it may be a good idea to report any errors you find
before beginning your car-buying journey.
Determine what you can afford Putting together a budget and savings plan is a good way to
determine how much car you can afford. You can do this by reviewing
your current expenses, calculating how much you already have or need
to save for a down payment, and limiting any unnecessary spending.
Find a car dealer that will work with you If you are shopping for a car with bad credit or no credit,
it’s important to find a car dealer that can offer you the right
type of car loan or auto financing for your financial situation.
There are many dealerships that offer subprime auto financing to
credit-challenged car buyers in need of credit approval to purchase
Credit Acceptance works with a network of more than 13,000
enrolled dealers across the United States that can offer credit
approval on quality new and used vehicles to credit-challenged car buyers.
The most important factor when buying a car with bad credit or
no credit is doing what’s right for you and your situation. If you are
in the market to purchase a vehicle and in need of credit approval,
Credit Acceptance can help. Simply fill out the form on our website to get
connected with three enrolled dealers near you that can help you start
your credit approval today!