Determine Your Credit Score and Evaluate Your Report
It helps to know your credit score before you apply for financing, so you can lay the foundation for working toward a better credit standing as you pay off the cost of your loan. Chances are you have an inkling of which end of the score range your past credit behavior fits into: high vs. low.
There are multiple credit providers out there but only one that’sgovernment sponsored and free. At AnnualCreditReport.com, you can request your credit report from the three credit agencies: Equifax, Experian, and Transunion.
You want to look over your credit report with a fine-toothed comb to make sure that all of the personal and account information and debts due listed are consistent with your past and current spending. If there are any red flags (accounts you’ve never seen before, etc.), you need to contact the agency immediately.
Create an Action Plan to Improve Spending Behaviors
Now it’s time to zero in on the risk factors section of the report for your next course of action. What can you do to minimize the debt you’ve built up in these credit lines?It helps to craft up a payback plan broken down by weeks and months for you to follow. You’ll go by this guide to gradually allocate small portions of your budget to paying off any outstanding charges. Be sure to include a little by little savings fund for a down payment on your to-be ride.
Apply for Approval
The next step is to apply for credit approval, preferably through a firm that specializes in helping those with poor credit or no credit. A lot of financing centers (Nissan 24’s included!) allow you to securely fill out an application online before you come out for your visit, which will save you plenty of wait time later on.
If you’re not proud of your credit score, you want to make sure that you can provide the financing firm with a complete picture of your current finances and the steps you’ve been taking in the past weeks or months to improve your credit.
Plan to bring the following items with you to your in-person visit:
- Driver’s license
- Documentation of recent bills that were hindering your score but are now paid
- A recent paystub
Discuss Your Options with Your Financial Provider
If you’re in a low-score, high-risk position, the majority of loan opportunities that you’re offered may have elevated interest attached. That’s why it’s beneficial to seek out a service provider with connections to a variety of trusted lenders in the area. This way, you get the best loan opportunity available without having to do the physical comparison shopping yourself.
Your financing associate will help you sort through the ins and outs of the plan that’s going to work for you right now and in the coming years as your credit improves.