Late Payment Car Loans
Having Late Payment should not stop you from applying for Car Loans
As much as one late payment on your credit bureau can scar your credit and change the entire look of your credit standing. Payment history is one of the most important aspects of calculating a person’s credit score. Whether it be a phone bill, credit cards or loans, by having late payments, you are essentially disproving to the banks/lenders of your responsibility and affordability. So what does this mean when it comes to acquiring a car loan? Does it make it impossible to get an approval? No! It is still very much possible to obtain and secure an auto-loan.
When you apply for a car loan knowing you have prior late payments you must prepare yourself as to what to expect. Depending on how frequency of late payments and how your bureau is overall, the outcome can still vary. If your late payments are at a minimal and your credit is still looking good, you can expect an ideal approval with a slight increase of interest rate. If there are multiple late payments showing on your bureau and your credit holds more negative traits, you can expect a subprime level approval with higher interest rates. At the end of the day, the objective is to gain an approval to not only obtain the vehicle you need to use every day, but also to re-establish your credit. When you have secured your auto loan, ensure that no further late payments scar your credit, especially on the car loan as it would hurt your credit further rather than rebuild.
People often find themselves in a less than idea credit situation and it can do to circumstances or a simple mistake; that does not mean that all doors and opportunities are closed to you. If you are in need of a vehicle and have had late payments on your credit bureau, give Autorama a call at 1(866) 979-2947 and speak to one of our finance specialists or fill out an online finance application to find out what options are available to you.