Now you want wheels, but your credit score looks like your GPA in college. I am sorry to tell you this but you are definitely not the only one among youngsters who faces such a financial situation.
The first thing that you need to do is accept your current situation. Take your credit report from any of the three companies – Experian, Equifax, and TransUnion. The knowledge is half of the battle, and here you need to know everything about your creditor’s point of view before he or she knows something about you.
If your credit score is too bad, then the traditional bank won’t help you because it is too risky for them. It might be a good idea to go to the credit unions such as PenFed or Navy Federal in case if you have enough money. Yes, it will require some additional effort, but your chances will improve.
A higher down payment will change your situation in your favor. Your risk will decrease, and your monthly payments will reduce. If you make 20% or more as a down payment, then you will feel a little bit more free.
It is not a smart choice to go to the car dealership and wait till they offer you a car you want. This way, you will get a car with a 20% interest rate for your Nissan Versa. It would be wise to be pre-approved for a loan online through such site as Capital One Auto Finance before going to the car store. You will get a check, and thus, increase your chances.
If you are rejected by all possible lenders, you should think of finding a co-signer. But it is a serious step, which requires respect and care. You should ask your relative or parents to co-sign your loan. They will take the risk by risking their credit score. In case of your missed payment, they will suffer too.
You may have to purchase a less expensive car than you wanted. You will buy a car such as Honda Civic and not a luxurious one. The price of your future car will be reduced by a few thousand dollars. It will allow you to go to work on time, and you will be able to purchase another car later when your credit score will be better.
Finally, remember to make all payments for your loan regularly and fully. Set auto-pay to be sure that all your payments will be made. Even one skipped payment will ruin all your progress for the next several years.