AutoFair Hyundai's mission is to help every customer leave our lot with the new or used car they desire - even those who are saddled with a low credit score. Our experienced and dedicated financing team is on call to guide you through the options you're eligible for according to your credit score and overall financial situation. A good portion of Americans with less than ideal credit ratings are still able to take home the car they've been eyeing, and many of them have found their solution with subprime auto loans. If you feel discouraged by your credit rating and feel like it's keeping you from moving forward, don't worry: come in and talk with our team.

 

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Bad Credit Auto Loans: What Are They?

Bad credit auto loans are a great option for those with a low or credit score (or who have yet to establish credit) who need help financing a vehicle. Credit scores range from a dismal 300 to a superb 850, with anything above 700 considered good. But a borrower whose FICO credit score falls below 620 is in subprime territory and will likely need this special type of loan.

Subprime loans carry higher interest rates than traditional loans because of the greater risk to the lender. After all, the person's credit score is most likely low because he or she has a history of not paying bills on time (or not paying bills at all), and no lender wants to take on a borrower who'll repeat that pattern. That said, more and more lenders understand that people go through tough times and temporarily can't make ends meet: good people fall on bad times and just can't pay everything until their finances improve. Once a credit score falls, it takes a lot of months with perfect, on-time payments on every account to bring that score slowly and steadily back up. It's during those times that subprime auto loans can be a savior.

The financing specialists at AutoFair will show you clearly what options you have and they'll guide you toward the wisest choice for your situation. Although you may have to take on a higher interest rate than you'd like, keep in mind that you can always work hard to pay that loan off early, reducing the number of months you'd have to pay that amount of interest. Of course, the sooner you pay off the loan, the sooner your credit score will improve.

Remember too that the more money you put down on the vehicle, the less you'll have to finance, limiting the total interest you'll pay over the life of the loan. So, save up, stay within your budget, work closely with your financing representative, and once you have your loan, try your best to pay a little extra on it whenever you can. By following this straightforward plan, you'll not only drive away with a reliable vehicle, but also a more desirable credit score.


Frequently Asked Questions:

What if I've filed bankruptcy, had a vehicle repossessed, or lost my job?
These are all relatively common situations, but you most likely need a vehicle to get to work and improve your financial standing. That's why subprime lenders, including some that AutoFair Hyundai works with, have developed solutions for difficult times.

Will I need to make a down payment?
Besides making your monthly loan payment lower, a decent down payment can help you get a lower APR because you'll be borrowing less. With the right loan, though you can still get approved for financing with no money down. Our financing specialists will explain all of your options and guide you toward the best choice for your circumstances.

Can I use a co-signer?
A cosigner with a good credit history will can go a long way toward helping you get approved, but it can be a lot to ask from a person. That's because a loan is a legal contract, and your cosigner is agreeing to make your payments if you fail to. That means your trusted friend or relative is putting not just their credit on the line, but their money as well. We suggest that you leave cosigning as the last resort and let us first explore every other option to get you approved on your own.


Common Causes of Poor Credit

Having a bad credit score can result from several factors, but at AutoFair Hyundai of Manchester, we tend to see the five outlined below the most often. Who knows, some of these might even strike a chord with you.

Going Through a Divorce

A common cause of low credit results from divorce. While already a devastating situation to deal with, having your credit tank as a result can feel like more than you can possibly handle. Let us try to ease the burden by finding you an auto loan with feasible payments so you can quickly be on your way to a better life.

First-Time Buyers with No Credit

First-time buyers tend to not have any credit established, making it difficult for them to secure an auto loan. If this sounds like you, then we're here to help you get started on the path to maintaining solid credit.

Losing a Home to Foreclosure

There are several people in the southern New Hampshire area who have lost their homes to foreclosure, and as a result, have seen their credit score plummet. If you've been the victim of a foreclosure, then come to AutoFair Hyundai of Manchester so that our financial department can show you what an auto loan can do to improve your credit. 

Declaring Bankruptcy

Believe it or not, filing for bankruptcy is more common than you realize. Many residents around Manchester, NH have filed for bankruptcy due to the state of today's economy, so if you're looking for a brand-new start, let AutoFair of Manchester help you make that first step to a brighter, more financially steady future.

Missed Payments

None of us are perfect, and sometimes missing a loan payment happens. While this won't negatively impact you in the short term, in the long term, you'll begin to notice your credit score drop. If you're having trouble managing payments, or you simply want to try to organize your finances so you can make sure bills are paid on time, give our expert financial team a chance to assist you.

Dealing with a bad credit situation is never easy, but at AutoFair Hyundai of Manchester, we're here to help you get back on track. How can we do this? By finding you a manageable auto loan that you can make consistent payments on to boost your credit. Bad credit can happen out of nowhere, no matter how hard we try to avoid it. With that said, it's a good idea to make sure you don't fall into worse habits as a result, otherwise it will be that much harder to claw your way back to financial security. If you're looking to get back on your feet and improve your credit score, then stop on over to AutoFair Hyundai of Manchester and visit our expert financing team who will help you take the necessary steps to move forward and embrace financial confidence.

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