Have Bad Credit? Hard Time Getting A Car Loan?
Have you been late on a few credit card payments? Had a previous car repossessed? Do not worry you and over a million other Americans have and you both now face lower credit scores. Unfortunately, with the lower credit score comes a harder time getting your next new or used car loan. Not every lender is keen to take risk on an applicant with bad credit.
Down Payments and Interest Rates:
Depending on the severity of your credit score, credit and legal limits of a particular US State, the down payment ranges from 20 % to 50 % and the interest rates from 5 % up to 49.99 %. Yes, that is right, 49.99% interest rates. What makes matters worse is that most bad credit loans may be a 18-36 month term, while people with good to excellent credit may see up to 84 month terms.
Some dishonest dealers at times increase the interest rates on the loan financed for that car. This leads to a borrowers failing to pay on the loan further, and thereby, runs into the more bad credit. Even if that person makes all monthly payments, the person ends up paying the double or the triple value of that car.
If you need help getting your next new or used car loan click the “FREE ADVICE” link above and we can help you find the best financing rates based on your credit.