Frequently Asked Questions About Second Chance Credit Financing

Second chance credit financing often gets a bad reputation, but that’s because it is misunderstood. We can also blame some dishonest dealerships who took advantage of their client’s poor credit to sell a vehicle and a financing plan they didn’t need for the poor reputation associated with second chance financing.

We want to set the record straight and answer some of the most frequently asked questions about second chance credit financing.

What is second chance credit financing?

Second chance credit financing is for buyers who need a vehicle and don’t have great credit. A poor credit rating can be caused by a lot of different factors including sudden job loss, being ill, getting divorced, or the pandemic. A poor credit is temporary, but it can impact your ability to get a loan with standard terms. This is where second chance credit comes into play.

Is the interest rate higher with a second chance credit financing plan?

Yes, second chance credit financing comes with higher interest rates than a traditional loan. On the other hand, the rate isn’t 20% or 30% like you may have been told. Rates can vary from buyer to buyer, but getting a loan with less than 10% interest is possible.

Will I be stuck with loan for a longer period of time?

Depending on your monthly budget, your loan may be longer. Our team will work with you to make sure we get the right loan for your needs and that you have all of the information about the term before you sign.

Will getting a second chance credit loan impact my credit?

The second chance credit loan can improve your credit over time. If you can’t get a traditional loan, your credit can’t improve. If you get a second chance loan, you have a chance to improve your credit over time by showing that you can meet your financial applications.

Can I get out of a second chance credit loan?

Yes, if your financial situation improves quickly, you can get out of your loan and get an improved rate. Contact us today to learn more, we will help you find the right financing plan for your situation!