Bad Credit Auto Loans in St. Peters
March 10, 2016
If you have a less than favorable credit score you may have wondered exactly how you ended up in this situation. It may be that you were not even aware that your credit was poor until you sought financing for a home or vehicle. Know that it is possible to secure bad credit auto loans in St. Peters.
It may be difficult to believe, but bad credit does happen to good people. Your payment history is from 30-40% of your total credit score. Even when you have been faithful and diligent in paying all of your bills on time, your credit can have marks against it.
A high debt to limit ratio or utilization rate is a primary cause of a lower credit score. This means that your cumulative balances of credit cards, loan payments and other debts you have is excessive. Your credit cards may be close to the limits set by the card company and you may be only making minimum payments. This shows potential lenders that you are at a higher risk of defaulting on your debts than someone with more credit available on a card. However, there are auto loans with high risk credit for people in your situation.
The length of your credit history is also a factor that a lender considers. The longer the period of time that you have established credit, the better.