A vehicle is a big investment. You want a vehicle that is reliable, affordable, looks good and helps you feel good. But sometimes life can make your dreams more difficult to achieve. Low credit can affect your life in predictable and unpredictable ways. For example, your credit is used when purchasing a vehicle, a house, getting a job, or getting car insurance. Your credit level has a far-reaching impact on your life and your goals.

That is the reason we created this guide. At Courtesy Volvo Cars of Chico, we want to help you achieve your dreams of owning the new or used automobile you are looking for. To that end, we are proud to provide a few tips to help you on your way to becoming an owner of your very own vehicle.

01. Paying Down Debt

Yes. This might seem obvious at first glance. Regardless, paying down your outstanding debt is one of the best things you can do to show lenders that you are serious about paying back the money they loan. For those with no credit history, this section is not for you. But if you are looking to finance paying down debt is the smart choice. In the months leading up to your decision to buy, pay down as much debt as you are able. Not only will you improve your debt-to-credit ratio, but your credit score may also go up as a result.

02. Shop Around for the Best Rates

Whether you have a limited credit history or low credit, taking the time to shop around for rates can benefit you a great deal. Dealerships, banks, credit unions, or other lending firms all offer financing opportunities. The trick is finding the right one for your situation. If you already have your money in a bank or a credit union, it is a good idea to check their rates, as you already have a relationship with them. Additionally, they may already be aware of your financial history. Limit any adverse effect to your credit score by keeping your searches limited to a 2-week period. Outside of that period, additional pulls to your credit report may result in lowering your credit score.

03. Pay Your Bills on Time

Nothing makes a lender more nervous than the belief that you will not pay back the money they lend. Having late payments on your credit history decreases lender confidence and might prevent you from getting financed. If you do manage to get financing, your less than stellar payment history might mean you receive a higher interest rate.

Purchasing a vehicle takes time and effort. But with the right plans in place and the right people behind you, it can be an enjoyable and rewarding experience. Courtesy Volvo Cars of Chico want to help you make the most out of your time and money.