Auto Loans For People With Bad Credit - Insanity Turned Sane
It may seem like anybody with subprime credit has a bulls eye on their forehead when it comes down to looking for auto loans for folk with bad credit. You know that finding a loan will be challenging enough but if you do find a loan you'll need to pay large when it comes to your rates. Still, what can be done? You need a auto to get you around and to and from work. I found myself in that precise situation a few years ago. After a particularly nasty divorce my credit was messed up. I was driving a 10 year old car (it was intensely reliable though and I loved that old car) that just started to want too much maintenance. I simply couldn't afford to keep it any longer.
I did not have any cash saved, well not enough for a car anyhow, but I needed an auto. So I threw caution to the wind and went to a local car dealer to see what, if anything, they could do. I was really shocked and amazed that they were able to work out financing for me on a nice used car.
My regular payments were something I could nicely afford and I had an auto that I knew I could count on. The dealership even offered a short term warranty of my 'new ' used car.
The only problem was that my rate was huge. Rates for folks with excellent credit were around 5% but mine was over 20%!! How was that even legal? But what could I do , I required an auto.
The welcome 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 automobile and buy myself a new auto. My interest rate still wasn't the absolute lowest it may have been because I still failed to have perfect credit, though it was miles better than my first auto loan. I was moving forward and improving my money situation... And I had a new auto too!
If you find yourself in the situation where you need a new auto but have poor credit these are some other tips that might help a little;
1. Don't limit your hunt for a loan to only your local bank. You can frequently find better value deals with an internet bank. Irrespective of everything else , don't limit yourself to only 1 or 2 banks.
2. Do everything you can to boost your credit history before you start your search. Sometimes you might even be in a position to find a mistake or 2 on your credit report and that can increase your score about immediately.
3. Try to come up with at least a small deposit. That may let the banks view you as someone who does have some resources even though your credit is bad. It will also mean you must borrow less which can generally make you more enticing to the lender.
There are such items as auto loans for people with poor credit, it just takes slightly more time and effort to find them.
I did not have any cash saved, well not enough for a car anyhow, but I needed an auto. So I threw caution to the wind and went to a local car dealer to see what, if anything, they could do. I was really shocked and amazed that they were able to work out financing for me on a nice used car.
My regular payments were something I could nicely afford and I had an auto that I knew I could count on. The dealership even offered a short term warranty of my 'new ' used car.
The only problem was that my rate was huge. Rates for folks with excellent credit were around 5% but mine was over 20%!! How was that even legal? But what could I do , I required an auto.
The welcome 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 automobile and buy myself a new auto. My interest rate still wasn't the absolute lowest it may have been because I still failed to have perfect credit, though it was miles better than my first auto loan. I was moving forward and improving my money situation... And I had a new auto too!
If you find yourself in the situation where you need a new auto but have poor credit these are some other tips that might help a little;
1. Don't limit your hunt for a loan to only your local bank. You can frequently find better value deals with an internet bank. Irrespective of everything else , don't limit yourself to only 1 or 2 banks.
2. Do everything you can to boost your credit history before you start your search. Sometimes you might even be in a position to find a mistake or 2 on your credit report and that can increase your score about immediately.
3. Try to come up with at least a small deposit. That may let the banks view you as someone who does have some resources even though your credit is bad. It will also mean you must borrow less which can generally make you more enticing to the lender.
There are such items as auto loans for people with poor credit, it just takes slightly more time and effort to find them.
About the Author:
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.