Overcoming Credit Issues

When you apply for financing for your new car, you will fall into one of three categories.

 Less than perfect credit

 Little or no credit

 Good credit

Chances are as a new car buyer, you may not have much of a credit history that lenders can use to base their decision on. While some lenders are willing to take a chance on you, others will not.

Less Than Perfect Credit

If your credit is not perfect, you may have trouble qualifying for a car loans. This can be very frustrating, especially if you found the perfect car. Credit issues can range from missed credit card payments, missed mortgage payments, missed student loan payments, and other loan payments. Credit issues are not uncommon. Banks and other lending institutions can work with you if you have minor credit issues. There are several options for you if you have less than perfect credit:

 Decrease time of loan repayment

 Increase down payment

 Find other lenders who will approve loan

 Agree to higher interest rate

 Find a lower priced car