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SpanishCan a Bad Driving Record Affect Your Car Loan Approval?
At Indy Car Financing, securing auto financing near Fishers is typically a straightforward process. But before providing car loan approval, our experts review everything from an applicant’s financial history to their driving record. A bad driving record can have a negative impact on the financing process and what options are available to you. Read on to learn just how much a poor driving record can affect auto financing.
How a Bad Driving Record Affects the Finance Process
When a lender considers a financial application, they are likely to pull your driving record. If you have a history of speeding tickets, traffic violations, accidents, or delinquent payments on a car, a number of outcomes are possible.
- There’s a high likelihood that you might not even receive a loan, since your driving record would indicate that you’re too risky to lend to.
- You could still receive an auto loan, but it would be available with a higher down payment or a higher interest rate to offset the risk.
Before applying for an auto loan, be sure to pull your driving record, and ask your insurance company for a copy of your claim history. Make sure that there are no discrepancies with either document.
What You Can Do to Avoid High Interest or Loan Denial
If your driving record only reflects one or two traffic tickets, your credit rating is high, and your claim history is clean, the chances of receiving an auto loan are still quite favorable. Even if you have a bad driving record, a lender can still offer you a loan with a higher down payment or high interest rates. Keep in mind that you will always have the opportunity to refinance your loan later on when your driving record improves. A co-signer with a clean driving record will also improve your chances of receiving an auto loan.
Receive Car Loan Approval at Indy Car Financing
When you apply for an auto financing near Fishers with us, we can provide competitive solutions no matter what your credit rating or financial situation may be. If you have any questions about the loan application process, you can contact us at 855-468-6215.