At AutoFair Honda, we want all of our customers to have the transportation they need, even those who've been turned down elsewhere because of a poor credit score. Our friendly and experienced financing team wants to help. They'll talk with you and get to know your credit situation, including your FICO score, and they'll walk you through all of the options you might qualify for.

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What is a FICO score?

Your FICO score is a three-digit number used to rate your overall credit history. It's based on the information in your credit reports, dating from the very first time you were issued credit. Every time you've been given credit, it goes on your credit report and stays there, even if you've paid it off and closed out the account. Your FICO score helps lenders gauge how likely you are to repay a loan. An individual score can range from 300 (poor) to 850 (excellent), with "fair" and "good" categories in between.

 

Can I really get financing if my credit is poor?

As mentioned above, AutoFair Honda's financing team is here to help, and they have the experience and knowledge to match you to lenders who do indeed work with credit-challenged buyers. Depending how low your credit score is, you may need to apply for a subprime auto loan. This loan type can save the day for the car buyer whose credit isn't great, but the caveat is that it will carry a higher APR than other loan programs. Still, the first goal is to get financed; once you're in your new car, you can work to raise your credit score and eventually apply to refinance to a lower rate.

 

What's a subprime loan?

A subprime auto loan is a type of loan offered to those who have either limited or poor credit history. A FICO score below 620 is generally considered subprime, but this can vary among lenders. Because it represents more risk to the lender to lend to someone who hasn't demonstrated responsibility with their credit, these loans carry higher interest rates. Buyers who haven't yet established credit also need to prove their responsibility, but they may be eligible for better terms. Whatever your situation is, our financing specialists will help you weigh all of your options and guide you through the entire process.


I've been approved! What should I do now?

First, be realistic about your budget. When you have your heart set on a particular model, you still need to figure out if you can afford it with breathing room for not just your regular expenses but the unexpected ones, too. You don't want to commit yourself to an ongoing struggle to make a payment that is really too much. It will cause you stress and put you in danger of further credit damage and maybe even repossession - something that will severely hurt your credit history for years.

As you consider which vehicle to buy, be honest with yourself about what features you need and which ones you can live without. You can always upgrade your vehicle down the road when your budget is larger. Just keep on making your payments on time while also paying down any other debt you have. Slowly but surely, your credit score will improve, and you can look in to refinancing to a lower APR.

Common Credit Issues

Financial trouble should not force you to submit to defeat. While experiencing it can completely drain you of all hope, our team at AutoFair Honda of Manchester is here to show you that getting back on solid ground is easier than you might have come to expect. How exactly? Oftentimes, financial hardship paves the way for bad credit, but we have a solution that could very well put you back on the path to financial confidence. By helping you secure an auto loan with an interest rate that you can manage, you'll begin to notice your credit score rise with consistent payments.

We believe that nobody should be burdened by financial insecurity, so we promise to go the extra mile for you. If you're ready to learn about how an auto loan can help improve your credit, schedule an appointment with our financial department today. In addition to booking an appointment, check out the list of common credit issues we see among our customers in the southern New Hampshire area and how we go about amending them.

Late or Forgotten Payments

Has this ever happened to you? It's not the end of the world if it has once or twice; however, when your payments are neglected on a regular basis, this can be a recipe for disaster. Are you looking for a way to work out issues related to missed payments? Then give our expert financial professionals the chance to assist you.

Declaring Bankruptcy

While it might seem to be a means to overcome debts, bankruptcy will leave you with terrible credit. If you've recently filed for bankruptcy and are hoping to build back your credit, we might have the solution for you.

First-Time Loaner

Our well-trained financial team has a lot of experience dealing with first-time car buyers. Typically, these customers don't have any credit established, making it difficult for them to take out an auto loan. If this sounds like you, then let us help you go through your options.

Recently Divorced

The last thing you're thinking about while going through a divorce is securing an auto loan. If you've suffered from bad credit as a result and are looking to get back on your feet though, an auto loan may be exactly what you need to get started. While it might seem impossible to manage, we're here to show you that it's not.

Losing Your Home to Foreclosure

Sadly, many New Hampshire residents have recently lost their homes to foreclosure. Our dedicated finance professionals will do everything they can to help you get out of this rut by finding you an auto loan that will raise your credit score if regular payments are made.

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