Aug 10, 2024 / Auto & RV
If you’re trying to buy a car and worry about finding financing with your colorful credit, you’re not alone. It can be stressful when so many lenders are focused on credit scores. But at Utah First Credit Union, we get that life happens, and we believe in second chances — no matter your credit history!
Whether you have A+ or colorful credit, Utah First offers auto loans for all credit types. We know everyone’s financial situation is unique, and we’re here to help you find a solution that works for you so you can hit the road with confidence.
Your credit score is one piece of the auto loan approval process. Scores of 700 and higher usually get you the best rates and terms, but a less-than-perfect score doesn’t mean you’re automatically out of luck. Plenty of financing options exist for colorful credit, which means you can still get approved with a wide range of scores!
Lenders like Utah First take a broader look at your finances to help you find the right loan. We see beyond the numbers and offer flexible solutions for your unique needs.
Your credit score doesn’t just affect your approval odds. It also influences how much you can borrow, your interest rate, and repayment terms. A higher score can help you borrow more and pay less interest for what you borrow, while a lower score can mean fewer loan choices and higher interest rates to offset the lender’s risk.
But don’t worry — a low score doesn’t necessarily mean you can’t get a loan. With the right lender and a solid game plan, you can still work toward the car and future you want!
Even if your score isn’t where you want it to be, tackling debts, making on-time payments, and steering clear of new credit can boost your score and open the door to better loan options later on.
The first step in qualifying for an auto loan is understanding where your credit stands. Grab a copy of your credit report to find out. The three major bureaus offer you a free report every year! If you catch any errors, correcting them is an easy way to boost your score.
If you’ve got time before applying for the loan, work on reducing debt and making on-time payments to increase your score — and your chances of favorable loan terms. Even small steps to improve your credit can make it easier to qualify.
Before you dive straight into car shopping and loan applications, figure out what you can afford first. We suggest setting a budget to keep you focused on manageable loan options that fit your budget without the extra stress.
Keep in mind that there’s more to car ownership than your monthly payment — it also comes with ongoing expenses like gas, insurance, maintenance, and registration fees. A budget helps you comfortably plan for and manage all the costs of car ownership without getting in over your head financially.
Putting down a bigger down payment boosts your chances of getting approved for a loan, especially with colorful credit. The more you put down, the less you’ll need to borrow, which makes things less risky for the lender and can even help you score a better interest rate. It’s a win-win!
Some lenders are more flexible than others when it comes to loans for colorful credit. Utah First is all about helping borrowers with all credit types qualify for auto loans. With competitive rates and flexible terms, we’ll help you find a solution that works for your finances!
If you want to improve your credit score to get a better car loan, small, simple steps add up over time! Here’s where we suggest you start:
By understanding how your credit affects loan approval, setting a budget, and making a larger down payment, you can increase your chances of securing a loan that fits your needs.
Whether your credit is great or you’re still working on it, Utah First provides auto loans for all credit types, and we’re here to work with you no matter where your credit stands!
When you’re ready to get started, we’ll help you secure needed funding for first vehicles, used cars, and upgrades. Get in touch with us to learn more about our auto loan services and how we can help you qualify for the car loan that’s right for you.