May 25, 2022 by Rick Griffith
Most of us already know it can be stressful to buy a car. After all, it’s likely to be the second-largest purchase many of us will make.
It’s also a purchase that, in many ways, is a necessity for making an honest living. For many Americans, hardship can come in any form and at any time in their lives. No one’s life is untouchable when it comes to financial challenges; it’s just a fact of life that many of us face.
So if you fall into financial hardship, you have to make tough decisions when it comes to paying your credit card bills or keeping a roof over your head. The decision should be simple, you do the latter and keep the roof over your head.
These are adult decisions that come with adult consequences. It doesn’t mean you’re a terrible person or have done something wrong. There’s no shame in taking care of oneself or family first; it’s just something we all may end up facing at least once during our lives.
So if you are among the thousands of Americans in the last two years that made difficult decisions about prioritizing your finances, don’t worry; you are not alone. No one expects to get laid off by their company, and no one can predict the time it might take to land your next job. But once those decisions get made, they can hurt your credit score, and recovery can take a long time.
That’s why you divide and conquer by making a new plan. First, you need a new car or at least a reliable vehicle. So you can buy a car!
You certainly can talk with a new car dealership or a traditional lender, like your bank or a third-party financial institution, to obtain the financial means to buy a new or used car. But when you talk with a traditional lender about getting a car loan, they’ll pull your credit history.
If you decide to talk with too many financial institutions that pull your history multiple times in a short timeframe, your credit score will drop. But if your credit score is damaged by years of unpaid bills sent to collection agencies, your score will probably be too low anyway. Likely marred with adverse credit reporting from missed payments, repossession, or foreclosure.
Even with an excellent credit score of 725, some lenders could consider you high risk if your debt to income ratio is too high. That means you’re not earning enough money to cover the bills you do pay.
Thankfully there are options for financial recovery that can help, like Buy Here Pay Here dealerships. It sounds scary, but it’s not. These are people who want to help people financially recover.
They help get you into a car you can afford. A reliable vehicle to get you to and from work, grocery shopping, picking up the kids from school, doctor’s visits, and any other day-to-day car errands. These dealerships want to see you succeed. So if you keep your expectations reasonable, a dealership can help you figure out the car that fits your price bracket.
Once you understand everything about your credit score and history, you’ll need to find a reputable Buy Here Pay Here dealership. One that wants to help you rebuild your credit score by consistently reporting to the top three credit bureaus: Equifax, Experian, and Transunion.
There’s no traditional lending with these dealerships, and they don’t work with third-party lenders. They are owner-financed dealerships. They will ask you to supply a current employer paystub as proof of income. Then regular car payments are set up based on an employer’s payroll schedule.
For example, if your employer pays you every two weeks. You should expect to make a car payment every two weeks when you get paid. Another example is if your employer only pays you on the first of every month, you make your car payment on that same date.
Reputable dealerships will report to all three credit bureaus that you’re making consistent payments each month in return for making regular payments.
Also, don’t be afraid to discuss your financing with a dealership; their job isn’t to judge. Instead, keep in mind that these dealerships want to ensure you get the car you can afford without overextending yourself.
It’s not about making the sale for them. It’s about getting you back on track financially. The more informed they are, the more they can help you.
After checking into your personal credit history and understanding your credit score, you’re ready for the next step in researching a Buy Here Pay Here dealership website. Car Credit has the ideal online portal to make your visit simple and worry-free if you’re looking for a local dealership in the four-state area.
When completing Car Credit’s online form, you’ll need to complete five lines of basic information, attach a copy of your current paystub, and a copy of your current and valid state driver’s license.
After Car Credit receives your online application, they contact your employer to verify your employment status. Then, they will assess your income level to identify a list of vehicles they have in inventory that will match your price bracket.
So you don’t have to worry about figuring out how much you can afford before you arrive; they will have that all figured out for you. Your next stop is test-driving cars before making your final decision on your new vehicle. Then you can head on down the road to financial recovery.