Determining Car Loan Interest Rates: Bad Credit Auto Loans

Determining Car Loan Interest Rates: Bad Credit Auto Loans

Posted 6.12.2012 in Articles by Neil-Denny

Are you constantly dreaming about getting a new car but don't think you'll be pre-approved for an auto loan because of your poor credit score? Luckily, there are plenty of places that offer bad credit auto loans. Don't be discouraged or embarrassed if you've been turned down in the past. The whole point of bad credit auto loans is to give you a second chance. Not only will you have a new form of transportation, you'll also reestablish your car credit, rebuild credit history, and raise your credit score. Get “back on the road” to better credit and apply for a bad credit auto loan.

Before you start shopping around for a dealership or a lending source that offers car loans for bad credit, you can save time by familiarizing yourself with the necessary qualifications. Bad credit auto loans have generally the same requirements across all highly reputable lenders. All bad credit auto loan applicants must be over the age of 18 with proof of U.S. citizenship. You must also have a stable job and place of residence to qualify for a bad credit auto loan. You are typically expected to have been with your current employer for at least one full year, with a monthly income of at least $1500. The last thing lenders will look into is your bankruptcy and repossession history. Most lenders will avoid applicants in an open Chapter 13 bankruptcy, and require that all Chapter 7 bankruptcies are discharged. Any repossessions that have occurred within the past year, that was not included in a bankruptcy, can also prevent you from qualifying for a bad credit auto loan.

Once you've met the requirements, it's time to start researching reputable dealerships or car loan websites with a bad credit auto financing plan that works for you. Auto Trader is a great place to find dealerships within your area that offer bad credit financing. If you are reluctant to discuss financing directly with the dealer, online car loan firms like AutoCreditExpress and myAutoLoan.com work to pair you up with an associate dealership within your area. 

As you would with car dealerships, see what other car loan websites are out there to compare quotes and get a better idea of what service works best with your situation. Online applications will require you to provide your personal information, including your birthdate and social security number, your place of residence, and current employment, so have all the necessary info readily available when applying for a bad credit car loan online. They will then review the information you've submitted to find a lending institution or auto dealer best suited to get you back on your feet. 

Although the road to financing a new car with bad credit may look rough, it's not a road less traveled. Auto dealers and finance firms are on hand to help people with bad credit land a second chance at buying a new car and reestablishing credit. A second chance at anything should always be taken advantage of. By opening yourself up to the opportunity of a bad credit car loan, you'll have a second chance at getting a car you need, and a second chance at building your credit to eventually get the car you've always wanted.


 

 

Image (CC) Auto Loans for Lancaster, PA

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