Even if you shop for inexpensive tires, a new set of tires can cost you several hundred dollars by the time you pay for installation. If you don’t have the cash on hand to pay for your tires upfront and you don’t have the best credit, purchasing a new set of tires can be challenging. These five tips can help.
1. Explore In-Store Financing
Many online and brick-and-mortar tire sellers offer financing programs that may be available to buyers with low credit. Depending on the program, the lender may not check your credit at all or may take other factors, such as your current income and recent payment history, into account when making a decision. In-store financing provides an opportunity to pay for your tires over time and many stores offer special promotions when you use in-store financing to make your purchase.
2. Consider a Personal Loan
A personal loan can be more difficult to obtain if you have low credit, but some lenders may be willing to work with you. You may want to start with your local bank or credit union. If that option doesn’t work out, online lenders often have lower credit requirements than traditional lenders. Loan amounts are typically available from $500 up to $30,000 and you can use them for any purpose.
3. Rent Your Tires
Rent-to-own retailers usually cater to customers who have low credit, so most will be willing to extend you credit. When you rent-to-own, you usually pay a weekly payment and do not own the merchandise until you finish paying for it. A rent-to-own purchase is often more expensive than using in-store credit or a personal loan; however, it may be an option if you are unable to get approved for other types of credit. Additionally, many rent-to-own retailers will give you the option to return your tires and pause your payments if you are having trouble paying for them.
4. Shop Online for Low Credit Financing
There are a variety of independent lenders online that work with borrowers with low credit. Many of these programs are lease-to-own programs, but some may work more like a credit card or personal loan. This type of financing is usually more expensive than a traditional loan or in-store financing, but you may be able to reduce your overall cost by paying off your contract early.
5. Be Prepared
Most lenders will require personal and financial information from you to approve your financing. You may need a photo ID, proof of employment, address verification, current debt information, and proof of income. You may also need to provide personal information, such as your date of birth and Social Security Number. Additionally, before you consider financing, you should make a budget and determine the maximum amount you can afford to pay per month.
Low credit can make financing a tire purchase more difficult; however, it doesn’t have to make it impossible. Whatever your credit situation is, there is probably a tire financing option that will work for you.
This was super informative to read and I learned a lot. I’ve never heard of rent to own tires don’t know if they have that in my area or not. I like the tip about in store financing thanks for sharing.