Bad Credit Auto Loans in Colorado Springs, Colorado
Colorado Springs, Colorado is a mountain community located at the foot of Cheyenne Mountain and Pikes Peak, which is a region that can punish any vehicle and force a consumer to burn through his, or her, fuel budget faster than usual. As a community with a large military population, demand for goods and services can out-race supply – further driving prices upward. This also creates an unusual demographic of very young people just entering the economic market and retired military who have economic needs specific to them. This variance in purchasing needs versus purchasing power has led to an usually flexible auto financing market which has learned to embrace a population with bad credit while servicing still servicing a good credit population. Getting bad credit auto loans in Colorado Springs, Colorado is easy no matter who you are.
The large military population in Colorado Springs means there are a lot of people who are just starting out and, for many, are earning a paycheck for the first time in their lives. If you're new to the world of credit whether it's buying a car or a home, it's easy to get overwhelmed by the complexity of the process. To you, it's just a matter of going to the bank and filling out an application. This might work if you have perfect credit and are sitting on a pile of money. But, most young people are not so privileged – which means you need to do a few things before you go shopping for a car loan.
Check your credit score if you don't already know it. This is a key piece of information your lender will look at when you apply for a car loan. Your credit score can be found at one of a number of online resources, the three most reliable scoring services being Experian, TransUnion, and Equifax. At 600 you're at the top of the below average or subprime lending category. At 500, you have bad credit and fall into the deep subprime category. Getting auto financing at a low interest rate will be tough, but a reasonable interest rate is doable.
Your credit report is a completely different animal from your credit score. This is a detailed history of your debts, repayments, and delinquencies, which will have a much bigger impact on your ability to get a car loan. But, your credit report is not written in stone. Get your credit report and study it thoroughly to make sure it is accurate. If you find errors, you can have them corrected, which can help in improving your credit score. Under the Fair Credit Reporting Act, you can get your credit report for free from anyone of a number consumer credit reporting services.
In a place like Colorado Springs, it's easy to spend money with its proximity to major shopping centers, ski resorts, and casinos – especially money you don't have. Take a long hard look at how much money you owe versus how much money make each month and think about whether, or not, it's a good idea to apply for a car loan. A lender will look at income and compare it to the amount of debt you carry. This debt-to-income ratio is the last piece of the puzzle in getting auto financing. If your debts outrace your income, it's highly unlikely you'll qualify for a car loan.
If you can wait to buy a replacement vehicle, do it. By giving yourself some time to improve your credit rating you can qualify for better interest rate on a car loan and save hundreds of dollars over the loan's term. Do your best to pay down your debts. Close credit accounts you're not using and resist the urge to open any new credit accounts. Get your free credit report and make sure it's accurate. By improving your credit score just a few points, you can improve your position when it comes to getting a car loan. In a place loaded with shopping temptations like Colorado Springs, saving money wherever you can is a big deal.