How To Buy A Car with Bad Credit in Birmingham, AL
If you have adverse credit history, you're probably wondering how you'll be able to buy a car. Not everyone has an extra $15,000 lying around, and even if you do, who wants to spend their life savings all at once? Here at Jim Burke Nissan, we know that life events can impact your score. We want to tell you that there is hope and that your debt recovery journey does not have to be a rough one. There are few key things to take into account when you want to purchase a vehicle with bad credit in Birmingham, AL:
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- Calculate Debt-To-Income Ratio & Your Budget: This is one of the most significant factors when you are applying for any credit. Even if you have a great score, you can still get denied credit for having too much loaned to you. By law, a lender can only lend a certain amount to each person. If you're at your cap and you get denied, you may want to consider calculating your debt-to-income ratio. To calculate your DTI, add up all of your monthly expenses on your credit report - personal loans, credit cards, car loans - and then divide the total by your gross monthly income. The percentage you get is your DTI. Make sure that you have ample room to borrow if that is your plan. You will also find out exactly how much you can afford to pay, which will set you up for success.
- Save Save Save: If you are still in the process of rebuilding your credit and know that it will be difficult to secure a car loan, save as much as you can for a down payment. The more money you can put down, the better. Providing a hefty downpayment not only lowers the risk for your lender, but it also means you'll be able to pay off your car faster since you're financing less. After saving, you might even find that you can afford a reasonably priced used Nissan for sale in Birmingham, AL without financing!
- Explore Your Options: If one lender says no, don't be discouraged. The expert finance department at Jim Burke Nissan recommends that you research Bad Credit Financing and Sub-Prime Auto Loans near Tuscaloosa, Alabama, like ours! With our auto loan, people just like you can secure credit without worry of denials. These types of loans are designed specifically for those who have suffered from foreclosures, bad checks, divorce, missed payments, and even bankruptcy. A bad credit auto loan in Birmingham, AL may be exactly what you need!
Have Questions About Bad Credit Financing?
For more tips and tricks or questions regarding our sub-prime auto loan options, contact the experts at Jim Burke Nissan! We will gladly help you purchase a car in Birmingham, AL with bad credit.