If you’re ready to take out a car loan here at B and B Automotive, will low credit stand in your way? Unfortunately, when it comes to used car financing, a low credit score can often be an obstacle. However, there are some things that you can do to make it easier to gain approval or take the sting out of a higher interest rate on your loan.

Taking Out a Smaller Loan

One way to improve your chances of approval could be by taking out a smaller loan. This means looking at a vehicle that’s less expensive or making a larger down payment on the car that you’ve had your eye on.

A smaller loan is less of a risk for the lender, so that can up your chances of approval. You’ll also end up paying out less interest as you pay off your car. You would be surprised at how much of a difference it can make to put down some extra money.

Getting a Co-Signer

If you’re struggling to get approved for a loan, a co-signer could help. This is someone who signs onto your loan with you. They essentially agree to be responsible for the loan if you were to default. This can give a lender more confidence and make them more likely to lend to you.

Having a co-signer can also help improve the terms of your loan. If you’re approved for a loan at a higher interest rate, getting a co-signer could sometimes help lower that rate. That can save you some serious money.

If you have any more questions about financing, our used car dealers in Fairless Hills, PA can help. We can help you find a vehicle you love and a loan that works for your budget. We look forward to assisting you!