Used Car Financing: What if You Can’t Make Next Month’s Auto Credit Payments?
The recent COVID-19 pandemic made this a valid question for a lot of people who lost their jobs almost overnight. Even if you know that your job is quite secure, you need to explore all your options before visiting car dealerships in Easley, SC, and after having bought a used car with financing. Missing monthly credit payments mostly lead to repossessions. You certainly do not want that. And a missed payment will also cause your credit score to deteriorate, making future loans difficult for you. So, you need to plan well ahead and make sure that you do not miss your auto credit payments. However, if you feel that you might miss the next month’s payments, here is what you can do.
Talk to your lender immediately
Do not delay the difficult conversation till the very last moment. As soon as you get to know that the next month might be financially difficult, contact your lender and look for deferral plans. A top no credit check car dealership will help you if you wish to delay next month’s payment by a few weeks but you should be the one who should be arriving with the proposal, not the other way around. Communicate right and make the necessary arrangements. This will help you to avoid repossession and the missed payment might not appear on your credit books. Every lender should be willing to accommodate a genuine reason and you should be willing to talk as well.
Refinance the balance with another lender
Assuming that you have paid the monthly credit premiums diligently to date, the net loan amount must have reduced from what it was when you bought the car. You can always refinance the balance amount with another lender, foreclose the previous auto loan, and start your new credit payments after a month. This will bypass the missed payment schedule and you can keep your credit score intact. But you only need to take this deviated path if your first lender is unwilling to accommodate your needs for one month. The best Easley car dealerships with financing options generally do not mind one delayed payment as long as you clear it in the following month.
Try your best so that this situation does not arise
This is indeed the best way of the lot to avoid the hassles of missed auto credit payments.
• One, pay as much down payment as you can upfront to reduce your net loan amount. Pick buy here pay here used car dealerships in Easley, SC that accept old car trade-ins and allow you to use the dollar value of your previous car in your new used car financing.
• Two, stick to a particular budget. Dealerships like Family Auto of Easley have a large inventory and you can find quality used cars in all price ranges. Decide how much you can afford as per your pay check and buy a used car accordingly.
• Lastly, take short-term auto loans. Long-term auto loans may be enticing due to their low monthly premium rates but you stay at the risk of missed payments for that long. A 3-year credit plan is ideal, especially when you are looking at bad credit cars for sale.
Do not allow the what-ifs to keep you up at night. Missed credit payments should not be an option for you. Plan beforehand, come to Family Auto, and make an informed purchase.
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