Have you got a credit score of 620 or lower? Banks and finance companies base their approval decisions on your FICO score, and they rarely approve borrowers at the lower end of the credit spectrum. Buy here pay here dealerships, on the other hand, cater to such individuals. They make all credit decisions on-site, so they can support a wider range of customers. The dealer functions as both the dealer and the lender. But how do you know that a dealership provides this type of financing? Many will use phrases like: we tote the note, we finance, your job is your credit, or rent to own.
Can I Get Approved for Financing?
Yes, and we can help. Nobody wants to drive all over town, looking for a dealer who will approve your credit. There’s a better way to get the car loan you need. We get you approved for financing in the least time possible. The approval process is fast, safe, and secure. Don’t delay. You could be driving your new vehicle today! There’s no minimum FICO score for approval. That said, you will need a minimum income of $1500 per month or $375 per week. This is income before taxes, not what you take home. If you don’t earn $1500 per month, you can still apply with a cosigner, provided they have good credit. This focus on income, rather than credit, is the reason these dealers will often tell you: your job is your credit.
Down Payment: Do I Need One?
This is one of the disadvantages to this type of financing: down payments in many cases are a requirement. It’s just a fact: people with low credit scores default at a higher rate. A down payment lessens dealer losses in the event of a repossession. Down payments lower your monthly payment, but you must decide whether you’d rather have that money set aside for emergency situations.
Making Your Payments on Time is Key
Repossession, especially involuntary repossession, is a very unpleasant experience. You lose your vehicle, of course, and you may owe a deficiency on the loan. This is fairly common with BHPH dealers, given their clientele, and you should know that repossession has serious consequences. It’s utterly imperative to choose a vehicle with payments you can make even if you face a future setback in terms of income. Also, be sure to want to read the details in your contract. That way you’ll know just what to expect if you’re at risk of falling behind on your payments. Some dealerships actually mount GPS trackers or passtime devices in order to facilitate the recovery process. Be sure to ask your dealer for details.