The Bluegrass state is one in which many people live happily, even with bad credit. While it’s not ideal to live with less than perfect credit, it’s not the end of the world. It takes time to get it back on track, but with on time payments every month, no missed payments, and paying down your debt, you can get your credit back on track before you realize it. It takes dedication and patience, but the end result is always worth it. Your credit score determines what kind of auto financing is available to you in Kentucky, if any. While you might assume your bad credit will prevent you from purchasing a new vehicle, the truth is that it might just be a roadblock you must overcome on the path to financing a new car.
Kentucky residents with bad credit should know how bad it is. If it’s exceptionally low, you might find it nearly impossible to purchase a car. If it’s bad but on the higher end of bad, you might find it’s much easier to obtain auto financing than you previously thought. Once you know where you stand, it’s time to take action. You’ll need a down payment. Few creditors in Kentucky are willing to lend money to anyone with bad credit and no guarantee they’ll get at least a little of their investment back if the consumer defaults on their loan. This is when saving money for a down payment is necessary.
Once your down payment is a reality, it’s time to decide how you want to finance. Do you have a favorite credit union in Kentucky you’ve banked with for many years? This is a great option, and it should be your first choice. Even if your credit is imperfect, your credit union rep might work with you. This is because they look at more than the number on your credit report. They check out your payment history and your entire credit report. if you’re bad credit happened a long time ago and your payment history has been nothing short of positive for the past few year’s you’ll find it’s much easier to obtain financing.
You can also apply for financing with a lender through a car dealership that specializes in loans for bad credit. Many big name dealerships work with people who have bad credit, and they do it on their own accord through the dealer. Call a dealer you want to work with and ask them what their bad credit financing looks like. Now is not the time to be coy about your credit score. Let them know in advance your credit is bad and your financial history isn’t perfect. They’ll need to know before you fill out a credit application that might lower your score even more.
The last option is a buy here, pay here dealership. These aren’t something you want to deal with, but you shouldn’t rule them out if your credit history prevents you from purchasing a car another way. These lenders don’t report to credit bureaus, they charge interest rates that sometimes double the price of the car you buy, and the vehicles on their lots aren’t always in great condition. They are available if you don’t have other options.
Dealer Requirements in Kentucky
Laws in Kentucky require all dealerships work within the realm of the law. This means they must adhere to all the financial rules, car rules, and salesperson rules in the state’s law book. All lenders, dealers, and salespeople must be licensed. Anyone working without a license will be fined and even face prison time when caught. All car dealerships are required to work with a certified mechanic. All cars brought onto their lot must have an inspection, and all issues must be fixed. If a car owner trades in a car with an open recall, the law states the recall must be fixed before the car is placed for sale.
If you as a buyer want to see the history of the car you want to purchase, the dealer is required to provide you with a free Carfax report. This report details the vehicle’s ownership history, accident history, repair history, and even its maintenance history. This is all information you want to have, and it’s illegal for the dealer to tell you they won’t work with you.
Driving in Kentucky is beautiful, because this is a state with many lovely scenic routes. The weather can become icy, cold, and even snowy in the winter, and sometimes you’ll need to take special care in weather conditions of this nature while on the road. In the biggest cities, Lexington, Louisville, Bowling Green, Owensboro, and Covington, you’ll find traffic is a big heavier and the commute a little longer. It’s going to require you find the local radio station that outlines this information so you know where there are accidents and other issues at hand so you can avoid them in advance.
Kentucky laws aren’t all serious, though. The state has instituted some hilarious driving laws in the past, and they’re worth learning when you get on the road here with your new car and your bad credit loan. For example, women between 61 and 199 pounds may not wear their bikini on the road in Kentucky unless they are covered completely, have a club on hand, or are accompanied by no fewer than two officers of the law. The only animal you are legally able to shoot from inside your vehicle in Kentucky is a whale, which you simply won’t find on the roads.