It could seem like any person with subprime credit has a bulls eye on their forehead when it comes down to looking for auto loans for folks with subprime credit. You just know that finding a loan will be challenging enough but if you find a loan you?ll have to pay large when referring to your interest rates. Still, what are you able to do? You want a auto to get you around and to and from work. I finished up in that exact situation one or two years back. After an extremely unpleasant divorce my credit was ruined. I was driving a ten year old car (it was intensely trustworthy though and I actually loved that old auto) that just started to require too much upkeep. I simply could not afford to keep it any longer.
I did not have any money saved, well not enough for a car anyhow, but I needed a vehicle. So I threw caution to the wind and went to a local car dealer to see what, if anything, they could do. I was awfully stunned and impressed that they were able to work out financing for me on a very nice used vehicle.
My regular payments were something I could nicely afford and I had an auto that I knew I could count on. The dealer even offered a short term warranty of my ?new ? used car.
The sole problem was that my interest rate was huge. Rates for folks with great credit were around 5% but mine was over 20%!! How was that even legal? But what could I do I needed an automobile.
The interesting news is that I made all my payments on time and after only about 6 months I was able to improve my credit history enough to sell that auto and buy myself a brand new car. My interest rate still wasn?t the absolute lowest it could have been because I still didn't have perfect credit, but it was much better than my first auto loan. I was moving forward and improving my money situation? And I had a new automobile too!
If you find yourself in the situation where you need a new automobile but have blemished credit here are some other tips that might help a little;
1. Don?t limit your search for a loan to only your local bank. You can frequently find better deals with a web bank. Regardless of everything else , don?t restrict yourself to only 1 or 2 lenders.
2. Do anything and everything you can to enhance your credit score before you start your search. Often you may even be in a position to find a mistake or two on your credit report and that can boost your score nearly instantly.
3. Try to come up with at least a tiny down payment. Which will let the banks view you as someone that does have some resources even though your credit is bad. It will also mean you will have to borrow less which will generally make you more engaging to the lender.
There are such things as auto loans for folk with bad credit, it just takes a little more effort and time to find them.
Joe Wilson has worked in the loan industry for over two decades. Let him share with you his years of experience with payday loans, auto loans, student loans and the new peer to peer loans.
Source: http://freefinancearticles.info/auto-loans-for-people-with-poor-credit-insanity-turned-sane
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