How to Finance a New or Used Car With Less Than Average Credit

If your credit score is less than average, you can still finance a new or used car. Car loans are available for people with credit scores that need a little work. If you are looking for new cars for sale in Schaumburg, and you need financing, here are some tips to help you find a loan without breaking the bank.
 
Check Your Score

If you know what your credit score is before you start shopping for financing, it will give you insight into the type of car loan a bank may offer. For example, if your score is below 680 but higher than 620, you will pay a higher rate, but it should be a rate you can manage. If your score is above 720, banks will offer you the best possible rate. A simple check of your credit will save you time and money.
 
Make a Big Down Payment

If you can put up to 20% of the purchase price on new cars for sale in Schaumburg, most lenders will offer to finance the rest of the balance. A big down payment lowers your monthly payment and the terms of your loan. If you have a less than average credit score but have the money to put some “skin in the game,” lenders will work with you.
 
Buy What You Can Afford

Buying a clean and crisp new car is certainly exciting. However, your budget may not allow you to buy something brand new. Newer model used cars are just as rewarding as buying new, and it will save you money over the life of your loan. Even if a bank approves you for a large loan amount, you still want to consider buying something preowned. After paying all your monthly bills, calculate how much you have leftover and use that as a gauge to determine how much car you can afford.