You need an auto loan and yet your credit is too weak to qualify for a loan from a dealer. Auto loans for bad credit are available for buyers who need extra help to get the car they need to get back and forth to work. Even if you have been struggling to find a lender, you may still be able to find the right auto loans for your needs.
Applying for auto loans for bad credit may take some research. Since most dealers do not offer poor credit loans, you may have to spend some time finding the right lender. One of the things you can do is make sure that you have a fair amount of your down payment available since the less you have to borrow, the more likely it is you will be able to find a loan.
Interest rates on auto loans for bad credit are typically higher than standard loans. The good news is the terms are often more flexible than standard auto loans meaning you have more time to pay the money back. An added advantage is you get to reestablish your credit while you pay the loan back meaning your next loan may be easier to get.
Before you start considering auto loans for bad credit, you should ask yourself a few simple questions:
Do I need to buy a car right now?
You may get a better rate on your car loan if you wait until you have a larger down payment
Can I get a co-signer?
Auto loans for bad credit may be a good option but a co-signer can make a difference in the rate you will pay
How bad is my credit?
Before you apply, request a free copy of your credit report and verify your credit
How much can I put down?
Keep in mind the more money you can put down, the less you have to borrow. This can be very helpful
Before you select a car, find out if you are eligible for auto loans for bad credit. Many lenders have strict guidelines about monthly income and may ask you to set up automatic payments. Keep in mind in addition to paying your loan, you will also have to maintain insurance on your vehicle and pay for maintenance and upkeep.
Just because you are having problems with your credit does not mean you shouldn't be able to buy a car. Regardless of whether you want a new car or a used car, bad credit auto loans can help you get started right away. With a number of lenders, we can help you find the best lender for your needs.