Auto Loans for People with Bad Credit

It will come as no surprise that the worse your credit score; the harder it is to get a car loan. If you are just a little delinquent on your bills you might be able to get an auto loan with a higher interest rate, but if you are seriously delinquent you are going to have a hard time finding someone willing to write you an auto loan.

However, there is hope for those with poor to bad credit. They are called Bad Credit Car Loans. They simply write auto loans to those that have bad credit.

Your credit rating follows you wherever you go – to buy a house, a car, even get a loan for home improvements. If your credit rating is low, you will find it difficult to get any kind of loan and if you do you will have to pay a very high interest rate. Your credit score is simply the way you pay your bills. If you pay them on time and don’t have a lot of outstanding debt you will have a great credit score. However, if you have a lot of outstanding debt, or a lot of debt and late payments, this will cause your credit score to be lower.

You have probably seen ads for 0% interest on car loans – these kinds of programs go to those that have great credit. Those with poor credit are looking at more like 7-8% for their auto loan. Those with bad credit are looking at more than 10%.

If you have bad credit and need to get a car loan, the best thing to do is look for those that offer bad credit car loans. If you go to the dealer and they approve you, you will pay a higher interest rate than if you go to a credit union or outside bank. You want to do your research above all else so that in the long run you end up paying as little as possible.



Back to March 2008 Archives