Bad Credit Auto Loans
// December 9th, 2009 // Loans
The best place to look for auto loans for bad credit applicants is on the Internet. Many lenders looking to break into this special market have gained an online presence. Before checking out either an online or traditional lender, here are a few things you should know.
Know Your Score
First, find out what your credit score is from one of the 3 major credit reporting bureaus-Experian, Equifax and TransUnion. A score lower than 650 will mean that you will be paying a higher rate if you get approved. There are quite a few auto lending sources that establish high rates and lending policies just for those who have substandard credit.
Fix It
If at all possible, correct all the smaller credit problems and fix any errors existing in your report, as this can help to raise your credit score.
Larger Down Payment Produces Less Interest
Next, you might want to consider offering a larger down payment. Since the value of the car you are purchasing becomes collateral for your loan, the bigger your down payment, the more financial investment that you’ll have in the vehicle. Also, if applicable, using a cosigner can help you qualify for a loan because their credit is considered along with yours.
