Smart Motorist » Buying Tires with Bad Credit- Everything You Need to Know

Buying Tires with Bad Credit- Everything You Need to Know

Consumers with bad credit have long complained about the lack of tire financing, but not anymore. Today, there are multiple options available, as well as several lenders who are happy to help you get a new, full set of wheels, even with an unimpressive credit score.

Knowing the process inside out makes sense before you go ahead with a bad credit tire financing plan. It can help one plan repayments better and avoid unexpected shocks. Keep reading to learn more.

Why Bad Credit Financing for Tires Is Good

Replacing damaged rims and a full set of wheels is a pricey affair today. Things were never like this, even a decade ago. You could have gotten fresh rims and new tires mounted, installed, and aligned for less than $1000. Along came custom wheels, and the game changed forever. With the supply chain shortage triggered by the pandemic, the consumer tire market took a hit. As a result, prices went up.

Say you spot tire cupping in your car that has 20″ rims. Replacing a full set of off-road tires would cost over a thousand dollars. For anyone sincerely pressed for cash, that’s a lot of money to invest.

Besides, some vehicle owners believe buying a full set of tires at such a high price isn’t practical. That’s because the warranty of these tires might outlive the lifespan of their current vehicles. Considering tires are indispensable, bad credit financing is a befitting option. 

The Difference between No-Credit-Needed and No-Credit-Check

Concepts like “no credit check” and “no credit needed” can be confusing. To be an informed customer, you will need to know the difference. It will help you analyze your repayment capacity for tires financed. Besides, you can also help save a negative impact on your credit history. Here’s what you need to understand. No credit needed means the lender can check your credit history before financing. However, that alone isn’t responsible for final approval. In contrast, a no-credit-check means your credit score won’t be fetched when approving finances for new tires.

Do All Kinds of Tires Qualify for Bad Credit Finance?

The short answer is yes. Despite one’s poor credit history, all kinds of wheels, tires, and rims can be financed. The tires, of course, vary in size depending on the vehicle type. For example, sports and luxury cars, especially European-made, use 18″ run-flat tires. On the other hand, pick-up trucks and jeeps work well with 20″ off-road tires. Standard automobiles like sedans, hatchbacks, minivans, and SUVs get financed for all season 16″ tires. Finding the right lender makes the difference no matter what kind of tires you need to be financed. 

Exploring Different Consumer Financing Options

Merchants agree to finance tires for consumers with bad credit for one reason-increased revenue. Nowadays, both small and large tire sellers have lending partners. It saves customers time as they don’t have to run around for financing. 

The eligibility check, the application process, and the sanctioning- everything is done under one roof. All you have to do is sign a few pacers and drive home with a new full set of tires. Generally, poor credit financing for wheels and tires sees two different lending options: 

  • Primary- This one’s a lending program that promises attractive loan terms, competitive merchant fees, and lower risk for lenders.
  • Subprime- One of the most popular bad credit options most customers qualify for. Subprime lending is usually preferred as it promises zero risk with multiple options for non-recourse loans to merchants. \

Both prime and subprime lending can be either a no-credit-check or no-credit-required program. It helps address unique customer needs, like those with unestablished credit histories. Thus, bad credit financing is also a good way to rebuild one’s credit. 

Bad Credit Financing For New Tires- A Befitting Choice 

Tire financing for customers with poor credit is a win-win situation. For a customer, it helps fulfill their necessity despite being cash-crunched. For merchants, it’s a surefire way to retain consumers, build brand identity, and boost revenue. 

Nevertheless, as an educated customer, read through all terms and conditions before signing the lending agreement.

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