Bad Credit Car Loans: Why “Bad” Is Misleading
How can shopping for a car be both exciting and stressful? It’s exciting to explore your options and test drive your top contenders, but the stress of the purchase process eventually overshadows that excitement. Buying a vehicle is an investment, but the stress of that investment heightens for individuals with low credit scores or limited credit histories who don’t qualify for a traditional automotive loan. So, what’s the best solution for buyers in the Vermont area? We here at Faith’s Automotive suggest visiting one of our multiple dealerships if you’re looking for a bad credit car loan near Bennington.
Bennington drivers who don’t qualify for a traditional automotive loan aren’t entirely out of luck or without options. Conventional automotive loans are ideal, but that doesn’t mean all bad credit car loans are necessarily “bad.” The name is misleading because finding the right bad credit car loan can offer numerous benefits, from establishing your credit history to rebuilding your credit one payment at a time.
As your destination for bad credit car loans near Bennington, our teams are happy to share our expertise with customers like you. A bad credit car loan can set you up for success behind the wheel without forcing you to compromise or settle for less in your next vehicle. Here’s a closer look at the benefits that await.
#1. Looking Beyond Your Credit Score
One of the top benefits of a bad credit car loan is that the lender doesn’t determine your creditworthiness based on your credit score. While that three-digit number will follow you throughout adulthood, its impact varies from one lender to another. What do we mean?
Each lender determines what they consider a good or excellent score that carries minimal risk. The three major credit bureaus–Equifax, TransUnion, and Experian–offer general guidelines for how the scores are determined and categorized, which is helpful as you rebuild your credit. However, a bad credit car loan lets you work beyond the credit score because the lender looks at multiple factors, like your living and employment situation near Bennington, monthly income, etc. So, rather than a three-digit number determining if you’re worthy of a loan, a bad credit car loan looks at the bigger picture.
#2. It’s a Critical Step in Breaking the Cycle of Bad Credit
Bennington residents with low credit scores or limited credit histories are often caught in a cycle of bad credit. For example, you need a vehicle to get to work, but your limited credit history or low credit score makes it impossible to secure a loan. Without a vehicle, keeping your job is hard, creating a ripple effect that impacts your financial situation and leads to another string of late payments and a steady decline in your credit score.
A bad credit car loan can successfully break that cycle because it puts you behind the wheel of a vehicle that can navigate your life in Bennington without forcing you to compromise. Whether your credit score is low from unemployment, bankruptcy, or something else, a bad credit car loan can be the olive branch you need to regain your financial footing. It gets you in a vehicle and a line of credit, which can dramatically impact your financial future.
#3. It Can Positively Impact Your Credit Score
Did you know that not all bad credit car loans are the same? Ideally, securing a bad credit car loan with a dealership that reports your payments to the major credit bureaus is best. For example, some dealerships offer bad credit car loans where they serve as the dealership and lender but don’t report your loan activity to Equifax, Experian, or TransUnion. Because of this, your bad credit car loan does not affect your credit score.
A dealership that reports your monthly loan payments has a vested interest in your financial success. Why? The dealership is ensuring your bad credit car loan has the potential to positively impact your credit score with each monthly payment made on time. This setup is designed to hold you accountable for the loan and gives you every opportunity to improve your credit score and reestablish your creditworthiness.
#4. A Broader Selection of Cars, Trucks, and SUVs
Bennington drivers with low credit scores often feel they have to lower their standards or ignore their must-have list as they shop for a vehicle. For decades, the industry has reaffirmed that belief by asking drivers to settle for less on the used car lot and even less at bad credit car loan dealerships. Fortunately, that’s no longer the case.
As you shop for a bad credit car loan near Bennington, you’ll find your options are plentiful. Used cars are in high demand, with more drivers discovering the benefits of investing in a pre-owned model that offers more value and features for their money. These benefits trickle down to bad credit car dealerships, where you’ll find every car, truck, and SUV imaginable from the world’s most revered automotive brands. As a result, your options are more extensive, making it possible to find the perfect vehicle at a price that fits your financial situation.
#5. The Approval Process Is Straightforward
Getting approved for a bad credit car loan is straightforward and usually hassle-free, a stark contrast to a traditional automotive loan. But why is this the case? We understand your financial situation isn’t ideal and that you’re looking for a way to reestablish your creditworthiness and drive home in a reliable vehicle. It’s not beneficial to make the finance process complex or more stressful than it should be; that wastes valuable time. So, what can you expect?
In most cases, securing a bad credit car loan starts with the approval process rather than shopping the entire lot of cars, trucks, and SUVs. Reversing the process is essential because it lets you know how much you can afford to spend. It eliminates the endless guessing game that leads to frustration and sticker shock as you realize the car you selected is beyond your budget. Our finance team sets you up for greater success by tailoring their approach, learning more about your financial situation to determine your budget, and securing the best bad credit car loan.
Once approved for the loan, you’ll have the information to shop our selection confidently. Moreover, our sales team can guide your experience, showing you the models that fit your driving, style, performance, and budget needs. The result is a bespoke and straightforward experience that saves you valuable time and money.
Bennington Drivers and Bad Credit Car Loans
Bad credit car loans near Bennington are often treated as less-than-ideal alternatives to conventional automotive loans. However, this shouldn’t be the case because of the many benefits these types of loans offer our Bennington customers. In fact, they’re often the best route for our customers to rebuild their credit scores and establish their credit histories from the driver’s seat of a reliable vehicle.
So, where does that leave you? As you navigate your next purchase, we encourage you to consider a bad credit car loan as a viable alternative if you have a low credit score or a limited credit history. This automotive loan offers numerous benefits, from positively impacting your credit score to helping you build equity with each monthly payment. These benefits prove that “bad” credit car loans aren’t actually bad at all.
