How Special Financing Auto Loans Rebuild Credit
With a special finance auto loan, each time you make a payment on time a report gets sent to major credit bureaus like Trans Union, and Equifax. Over time, from having a good payment record, this will have a positive impact on your credit score. When it’s time to apply for your next auto loan, which could be anywhere from 3 to 12 months, all sorts of lenders will be eager and compete to work with you because you have re-established good credit history. You may even be able to refinance your car loan at a lower rate after making payments for several months.
What Kind Of Cars Are Available
Not only can special finance lenders help you rebuild your credit, but it can also help you get back on the road in style. Some people assume that they can only afford old, worn, and even unsafe cars without good credit. This is not true. You might even find that you can get better rates if you purchase a new or like-new used cars with special financing auto loans than if you were to buy older vehicles.
Getting A Better Quality Car
Lenders consider the financial situation and credit rating of borrowers. However, they also consider the type of vehicle that will end up securing the loan. If they are going to provide you money, they would rather have you purchase a more reliable and more valuable vehicle that is likely to outlive the term of the loan. Please note, sometimes banks and lenders refuse your application NOT because of your credit, but because of the vehicle that was selected, after years of experience, we do know how lenders think. Getting you into a well maintained vehicle gives the banks more assurance that the loan will not put you in a bad situation. This is because your car will not get runned down quickly or need to be replaced before the loan term is over. In the end, this makes auto financing companies more eager to have you as a customer.
In other words, you may very well be able to use a high-risk loan to buy a very nice car. This might be a new vehicle right from the manufacturers delivery truck. In other cases, it might be a late-model used car. Either way, you can drive out with a reliable and safe vehicle that you can be proud of.