If you need an auto loan and have bad credit, it can be a really frustrating experience. Especially in the current economic climate, where it can be tough to get an auto loan with a good credit score.
It may not be easy to do, or a lot of fun, but you can do it. It just takes a little more effort than it would otherwise.
First, there are many online lenders you can use to secure an auto loan even if you have a poor credit score.
There are also car dealers that specialize in giving auto loans to those with bad credit. Your interest rate may be quite high compared to the going rate for people with good credit scores.
You may also have much stricter loan rules. For example, on dealer I know of WILL repossess your car if your payment is one day late. And you must make a payment every two weeks.
But if you need a car and don’t have any other options because of your poor credit, this is much better than not being able to get a loan at all.
And keep in mind that sub prime lenders look at your overall financial situation not just your credit score.
This means things like:
Job Salary Becoming An Sba Lender
Amount of time at your current job
Time spent at current residence
Amount of down Alternative Investments Cfa Level 1 payment
Your Debt to Income ratio
So while you may have a poor credit score, you can still secure an auto loan with relatively decent terms if these other aspects of your financial situation are pretty good.
If you’ve been working and living in the same places for awhile, have a decent down payment, and your debt (mortgage payment, car payment, other loans) is not too big a percentage of your income, you will have a good chance at securing a loan.
Make sure that you are well prepared by having all the documentation you need on the above issues available for the lender.
Make sure all your information is accurate.
You may just have an auto loan preapproved online today.