Used Car Loans for People with Bad Credit
Getting a used car loan for people with bad credit may seem an impossibiity, but even people with damaged credit have options they often don't realize they have. After being turned down for the low-interest financing that dealerships offer and being rejected by local banks due to their low credit score, people with past credit problems can be discouraged and feel they will be forced to drive old, worn out vehicles forever.
However, there are ways of getting a used car loan for people with bad credit. The key is to know where to look. Car dealers handle a lot of financing deals, but it is important to understand that the car loans with low-interest rates they advertise are reserved for those with clean credit reports. Some dealers will not continue to search for financing for those who do not qualify for those advertised programs.
Other dealers do help people with credit problems find used car loans. Commonly known as sub-prime loans, these financing programs generally require a larger down payment and carry a higher interest rate. These loans are very often not advertised, and so a person who has less than perfect credit may not realize that they exist.
Basis for Used Car Loan Consideration
In deciding whether or not they will approve a local used car financing, lenders consider many different factors, such as:
- Overall credit history
- Amount of the downpayment
- Monthly income
- The length of time the loan will cover
It can be difficult to compare loan packages, as each lender weighs the various factors differently. Sub-prime loans for used cars can be even more difficult, as the age and condition of the vehicle are also factored in. All of this can be discouraging for a person who is trying to rebuild their credit while also finding an affordable loan. They may be tempted to take the first loan they are offered, especially if they have been turned down on previous attempts.
Rather than settling for the first loan offer, we invite you to chat with one of our financial experts. They will evaluate your situation and help you find the lender will best meet your needs. We work with lenders all across the region, so we are familiar with their requirements and the way they evaluate loan applications. Let our team help you find the right used car loan for your credit and financial situation and help you get into a better car and start to rebuild your credit.