Auto financing can be difficult when you've had credit challenges in your recent past. Events like a divorce, repossession, foreclosure, or bankruptcy can put a real damper on your ability to get approved for an auto loan or lease. Unfortunately, having credit challenges doesn't change the fact that you need a new vehicle. What should you do? The finance center at Clayton Motors Inc, located at 9715 Parkside Drive in Knoxville, TN, has some tips and tricks that might help you in your attempt to buy or lease a vehicle from our new Volvo selection, or used inventory.

How to Finance a Car with Credit Challenges

Although it may seem hopeless when you have negative items impacting your credit score, the truth is that is not the case. There are many things that you can do to improve your positioning when you are applying for auto financing. The finance team at Clayton Motors Inc has some helpful hints below for those currently looking to get an auto loan or Volvo lease at our dealership:

Improve Your Score by Paying Off Debt

One factor that lenders look at when you apply for a car loan is the debt-to-income ratio. If you have some credit cards or personal loans on your credit report, you can improve your standing by paying down the balances. It will make your debt-to-income ratio look much better to our lending partners.

Consider Adding a Cosigner

Although our finance center may be able to approve you for car financing without a cosigner, you may want to consider having one. A cosigner with excellent credit can help bring down your interest rate, and your monthly payment.

Choose the Shortest Loan Term Available

If your budget can handle it, the team at Clayton Motors Inc advises you to take the shortest loan term available. When you do that, you lower the amount you pay in finance charges. You'll also be out of debt in a shorter period of time.

Be Open to Different Vehicles

Depending on your credit challenges, your vehicle choices may be restricted. Be open to different choices from our new and used inventory. Paying back an auto loan successfully will open up your choices the next time you go car shopping.

Contact Us

Do you want to discuss your specific situation with one of our finance experts? Contact a finance professional at Clayton Motors Inc, in Knoxville, TN, or apply for auto financing today, and find out what our finance center can do to assist you.