South Dakota is the kind of state that makes you feel good. It’s beautiful, natural, and not overrun with such a large population you feel overwhelmed with all the people and traffic. On that note, it’s easy to feel frustrated when you need a vehicle but can’t purchase one due to your bad credit. It’s not a state well-known for its public transportation, which means most residents require a vehicle of their own if they hope to get around without any issue. Buying a car requires using cash or applying for a loan to purchase a car. Bad credit borrowers are typically turned down time after time for loans, which is frustrating. Just when you think you have no hope for a new car, you’re able to find a deal that works for you. You do have hope, you just need someone to help you find it.
South Dakota is home to many credit unions. If you are a member of one, you should visit their offices before you go anywhere else. Even though you have a poor credit score, your recent credit history could be very positive. If it is, your credit union might take it upon themselves to lend you the money to purchase a new car without good credit. The interest rate will be lower than it is with a bad credit loan, but it won’t be as low as it is for those who have a good credit score. It might do your confidence well to be looked at for a loan as more than just a number. You can handle this situation without much fanfare by simply visiting the bank and asking them to help you get credit.
If you don’t have a credit union to work with, you can work with a dealer. Many South Dakota car dealerships have a lender on their roster that helps those who do have poor credit. You will need a large down payment, you’ll need to amend what kind of car it is you’re checking out, and you’ll need to do yourself a favor by helping to keep your credit from crashing again. You can buy a car this way, but it typically requires your credit is on the upper end of bad. It’s not impossible to get one with mid-range bad credit, but it’s not as easy.
If your credit falls into the low category of bad credit, you’ll find you have no way to secure a loan in a traditional manner. The best thing you can do for yourself is go to a car dealer that allows you to take out a loan from them. This is often referred to as a buy here, pay here dealership. These are very expensive loans without exorbitant interest rates, often unreasonable terms, and payments that are made every two weeks. Interest is usually about the same as the purchase price of the vehicle, and it’s one of those situations you do not want to find yourself involved in unless you have no other choice in South Dakota.
Dealership Regulations in South Dakota
Dealerships working in South Dakota have specific rules and regulations to uphold when they go into business. The most important is a certified mechanic. This kind of partnership is required because all dealerships take in trades and used cars to put on their lot. When they do this, they must have a specific system in place. All cars have to be checked for recalls, they have to be checked for dangerous issues, and they must be repaired if there is any issue.
Your dealer should have a list of certifications and licenses on display at some location in their offices. The state requires all salespeople have their own state licenses to practice selling cars in South Dakota. This isn’t a typical problem when you find a nationally recognized brand dealership, but it can be problematic when your dealer is a smaller location without a national brand backing it. Ask to see these licenses before you do business with any location.
It’s also helpful to ask for a history report for any car you want to purchase. Dealers are required to provide these to all buyers upon request, and they are required to provide them free of charge. It’s not legal to charge a customer for this report.
Driving in South Dakota
South Dakota isn’t known for its large cities, but Sioux Falls, Rapid City, Pine Ridge Indian Reservation, Aberdeen, and Brookings are famous for being the biggest cities in the state. Though Sioux Falls is the largest city, there are still only 126,000 residents, and that’s not large. Traffic isn’t typically a problem for anyone driving in South Dakota, but it’s always wise to abide by the rules of the road when you’re behind the wheel of your car.
It’s difficult enough to get a loan for bad credit, but it’s even more difficult to get a second loan for bad credit if your car is destroyed in an accident. Don’t speed, watch the weather, and follow the rules of the road. If you have a bad credit loan in South Dakota, it’s helpful to use it to help your credit score. You can make all your payments on time, pay off your debt, and work to improve your credit score.
If you can do this and still secure a bad credit loan, you can possibly qualify for a better loan in the future. It’s not always easy to qualify for the correct loans, but you do have options when it comes to your credit score. Take care of your score, and don’t let it get any lower. You must make wise decisions when you apply for a bad credit loan so it helps you improve your credit future. You can apply for a bad credit loan, but you must use it wisely.