New Hampshire residents are not immune to living with debt, which means many live with bad credit. While many choose to ignore their credit score in hopes they can forget how bad their financial situation has become, others are forced to acknowledge how poor their credit has become when it’s time to apply for a loan for a new automobile. Most lenders refuse to lend money for a new car to anyone whose credit score is lower than good. Some lenders offer loans to those with fair credit, but the interest rates make these loans so unaffordable many choose to ignore them and not purchase a new car. If your score is lower than fair, you have even bigger problems at hand. You won’t qualify for a traditional car note, which means you’re stuck without a car in a state with fewer public transportation options than other states.
The good news is bad credit shouldn’t stop you from purchasing a car. There are options, but it requires being very disciplined and learning to compromise. The first thing to do when you have bad credit is avoid shopping for a new car until you have saved a large down payment. Lenders are more willing to work with someone who has bad credit if they have a lot of money to put down. Save at least 10% of the cost of the car you want to purchase, but expect lenders to ask for as much as 50% of the cost of the vehicle as a down payment.
Now you must find a lender willing to work with you and your poor credit history. The first option is a dealership that specializes in bad credit loans. Many large dealers do this, but you’ll work with a lender that won’t let you choose just any car on the lot. You’ll choose from a specific list of vehicles set aside for those who do have poor credit, and you’ll pay far more than you want for the car thanks to the high interest rate the lender will hit you with.
A second option is to speak to your personal banker or your credit union. These are lenders who don’t use only your credit score when making credit decisions. Your best chance is to do this if your bad credit history is in the past. For example, if you have bad credit because of financial mistakes you made years ago, you might have a chance of getting a loan. Your lender might see you had financial problems three or four years ago and decide since you’ve been making on-time payments, paying off your debt, and living without financial issues since then, they can work with you. These lenders know negative items sit ominously on your credit report for a staggering 7 years before they go away, and they aren’t going to punish you for those items if your recent credit history is favorable.
If you have very low bad credit scores to work with, you’re not getting a bad credit loan in the traditional sense. Now is the time to consider saving up to buy a new car with cash or work with a buy here, pay here lender. These lenders are going to take your money, give you a car that’s older and has high mileage, charge you two monthly payments, and they’re not going to report to the credit bureaus.
Dealer Regulations in New Hampshire
If you’re looking for a new car in New Hampshire but you have bad credit, you want to find a reputable dealer. If you’re not working with a nationally recognized brand dealership, you’re going to want to ask to see the dealer’s credentials. This means state licenses and certifications, and it means asking to see the licenses held by salespeople. These are all required by law, and no dealer can do business without these certifications and licenses. If you come across one that is doing business without, call the DMV to report them and do not do business.
One more thing to check with any dealer is their mechanic. It’s a state law to have one on hand to inspect each car that comes onto the lot. This mechanic’s job is to fix issues with cars, check for recalls, and check for safety issues. If you do find a car to purchase, ask for a Carfax history. The law states all New Hampshire dealers provide customers with this information free of charge. If they don’t, it’s a sign you don’t want to do business with this particular lot.
Driving in New Hampshire
Driving in this lovely state can prove challenging when snow is heavy, which means snow days are called and drivers are encouraged to stay off the road. There’s some congestion during business hours in the biggest cities, which include Manchester, Nashua, Concord, Derry, and Merrimack. These cities are larger than others, but they’re not huge. You might find traffic heavier there than any other cities, but you’ll also find you can listen to the radio to find out which roads are congested, accident-prone, and worth staying off.
A few more little laws to be aware of driving in this great state is you cannot have a ferret with you while you drive to go hunting. This is illegal, and grounds for legal punishment. It’s also illegal to allow a cow to cross a road if it’s not fitted with a device or machine that prevents its waste from hitting the road. Please call law enforcement if you see a cow doing this while you drive your new car courtesy of a bad credit loan.
Driving in New Hampshire is not impossible for people who have bad credit. It’s not going to be as affordable or as simple to obtain a loan for a new car as it is if you have great credit, but you can make an effort to find a new car with bad credit. There are options if you take the time to look for them and resign yourself to pay more than you want.