Jay North Auto Is A Car Dealership That Works With Bad Credit In Springfield Ohio.

The first thing you should always do as you’re shopping for a car with bad credit is obtaining an official credit report and begin considering how your report will look in the eyes of a lender. A good rule of thumb is to start monitoring your credit report about three months before you start really digging into your car search because this will help you when it comes to properly address any outstanding items. 

This of course isn’t always an option for everyone as their dream car suddenly comes on the market, but it simply goes a long way when you understand your credit score and can pay off some outstanding loans or credit card debts prior to obtaining your car loan. 

It’s important to understand that your credit score will have a direct impact on the interest rates you’ll be offered from lenders, but once you understand your credit score you’ll then have a good foundation for initiating your car shopping! 

Shopping for used cars with bad credit can sometimes make it a little more difficult for the average car shopper to understand their budget in terms of monthly car payments, but it’s also important to simply keep your focus on the bigger picture.

Monthly payments won’t include everything that goes into a car purchasing budget, because you’ll also need to consider insurance and fuel costs. Insurance typically tends to be more expensive with bad credit, which is why we always recommend a used car if you’re on a tight monthly budget.

What’s important to keep in mind while you’re shopping through the inventory of a car dealership that works with bad credit is that bad credit can detrimentally affect your interest rates, which subsequently has an effect on the total costs of your monthly payments.

Our team will always help you when it comes to understanding how your credit score will affect your interest rate and monthly payments on particular cars, so we’ll always guide you towards vehicles that fall within any budgetary constraints you may have.

It’s always important to have all your paperwork in order as you’re beginning the process of applying for a car loan, and many lenders will want to see 1099 or W-2 forms as proof of your income.

There are of course instances in which people work in a way that’s more difficult to prove income, so if you’re in this type of situation then it’ll be important to print out your bank statements that show proof of your weekly/monthly deposit history.

It’s also possible that a lender will want to see proof of your housing agreement (rental agreement/mortgage statement) to prove your address. Lenders typically want to know where people live because it provides proof of stability, so banks will highly consider how long you’ve lived at your current residence. But they also simply want to know where you live just in case the vehicle needs to be repossessed!

By simply having all of these financial documents when you come to our dealership, you can potentially get a response on your loan application within hours instead of days. It’s also important to note that you may need to provide personal references for lenders as well.

The sometimes hard truth for car shoppers with bad credit is that they’re likely going to need a down payment, and most banks will require a minimum of 10% down or $1,000.

It’s definitely possible to utilize a trade-in as your down payment, but there may be the possibility that a bank would prefer cash. Cash down payments will always go a long way in proving to lenders that you’re absolutely committed when it comes to maintaining the integrity of your auto loan.

It’s also important to note that the more you put into your down payment, the more likely you’ll be approved of a better interest rate.