Loans for the Credit Challenged | Gainesville FL

Tips for Working with Bad Credit in Gainesville, FL

Tips for Working with Bad Credit in Gainesville, FL

Experiencing the repercussions of bad credit? We understand how discouraging it can be, especially when it's keeping you from buying a new car or making another important purchase. Even if your credit score is decent, there's a good chance you can make it even better. We're here to help you succeed. Don't forget: We have something for everyone! In our finance center, we work with a variety of customers, including those with bad credit.

At Parks Ford Lincoln of Gainesville, it's our goal to see you drive home in the vehicle of your choice. So today, we're giving you some tips for fighting bad credit so you can eventually see those three digits improve.

1. Check Your Credit Report & Fix Any Errors

If you're not sure where your credit stands, start here. There are three major credit bureaus: TransUnion, Experian and Equifax. Your credit reports will come from these three bureaus, and you can request these reports from www.AnnualCreditReport.com. By checking your report, you'll have a starting point to see how much you need to improve.

It's not uncommon to find an error on your credit report, causing your report to be inaccurate. The good news is that you can dispute these errors. However, you'll have to do this for each credit bureau, as there may be differences in each report. Plus, you'll need to dispute each error separately.

According to Experian.com, your credit score comes from the information on your credit report, and while you have multiple credit scores, the most common score that lenders use is the FICO® Score 8. FICO® scores range from 300-850, with 300-569 considered poor, 570-669 considered fair and 670 and above considered good. While FICO® Score 8 isn't used by everyone, we'll use it as our reference point. To learn more, see also this article.

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2. Make Payments on Time

This is extremely important. Late payments have the biggest impact on your credit score, causing potential lenders to be wary. 35% of your FICO®  score is based on your payment history, so it's crucial to keep up with your payments without fail. If you struggle to remember payment due dates, try automatic payments or set reminders on your phone.

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3. Stay Below Your Credit Limit

About 30% of your FICO® score is made up of how much credit you're using, also known as credit utilization. This large percentage gives you a clue to how crucial it is to not exceed your credit limit. And, according to Experian.com and Credit.com, it's best to stay below 30% of your credit utilization. But if you find this is a struggle for you, you may be able to increase your limit.

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4. Be Patient

While it may be difficult to do, try to be patient, as you won't see immediate results as soon as you've taken the necessary steps. Once you've done everything you can, look forward to seeing your bad credit eventually turn to good credit!

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5. Make a Budget + Get Pre-Approved

Figure out how much you're able (or willing) to spend on a new or used vehicle. Your decision will be based on your needs (larger vehicles are more expensive), your bank account (how much of a down payment you can afford) and how long you plan on making payments. After you've made a budget that includes car insurance and an estimate of annual repairs and maintenance, get pre-qualified with our online finance application.

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6. Big Down Payment + Shorter Term

Once you've been pre-approved, you're one step closer to owning the car of your dreams. Next, you'll talk to our financial experts regarding your options for financing. We recommend putting down as much as you can and agreeing on a loan term that's no longer than 60 months. But, depending on your credit situation, those numbers will vary for everyone. You can always plan on paying off your auto loan early if possible — your credit score will thank you.

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Many dealerships are willing to work with customers who have bad credit. At Parks Ford Lincoln of Gainesville, we'll do our best to find a plan tailored to your needs. Start by filling out our finance application. If you'd like to learn more about rebuilding your credit score, contact us today or stop by our dealership at 3333 North Main St., Gainesville, FL 32609. Our finance department is always here to help. We welcome customers from Alachua, Starke, Ocala and Lake City.

 

For further tips on fighting bad credit, check out the following articles:

https://www.experian.com/blogs/ask-experian/credit-education/improving-credit/improve-credit-score/

https://www.credit.com/credit-repair/how-to-improve-credit-score/

https://www.nerdwallet.com/blog/finance/how-to-rebuild-credit/

https://www.nerdwallet.com/blog/finance/raise-credit-score-fast/