With the average cost of a new car pushing $30,000, car loans are a necessity for many Americans. Understandably, the process of obtaining car finance is relatively simple due to the high demand. But what you may not realize is that it can be straightforward for people with bad credit. Although those with low credit scores might think that an auto loan is off-limits to them, this couldn’t be further from the truth.
Why a bad credit car loan is accessible for all
Automobile financing allows a consumer to own their vehicle outright from the get-go, by taking a loan for the total value of the car and repaying this each month, in manageable installments. It is a great alternative to paying the total cost in a lump sum and makes the possibility of owning a new vehicle a real eventually for many.
How it works
When a consumer is ready to look for their next car, they can search for a range of car financing companies. By comparing lenders and applying for loans, they can receive a competitively rated loan that covered the cost of the vehicle.
Is it still possible to obtain an auto loan with bad credit?
PersonalLoansForBadCredit.net features a range of auto loan finance companies that specialize in offering affordable loan packages to those with bad credit, low credit or sometimes even no credit history at all. Each of the lenders has their own terms, rates and offers which you can compare for free via our site. Bad credit car loans are a very popular way to cover the cost of a car, especially for the “subprime” demographic – consumers with credit scores below 620. In 2012, the number of car loans made to individuals with poor credit rose by 22.4% from 2011.
Maximize your chances of being accepted for an auto loan
A number of factors influence the likelihood of being accepted for a bad credit car loan and can affect the amount you will pay, for better or for worse. Some of those factors include:
Although you might have already spotted a car that you want, you should still be realistic about what you can afford to buy and, of course, how much you can afford to borrow. Just because you may well be able to get a bad credit car loan to cover the cost of your next car, this doesn’t necessarily mean that you can or should borrow that much. Remember that with bad credit you will most likely be paying a little more for your loan than a consumer with good credit, so budget for this accordingly.
How to apply for a bad credit car loan
Using our free auto loan introduction service is a great way to be considered by top car lenders and compare what is on offer without any obligation to say yes. Before this, you should investigate your credit score to find out exactly what category you fall into. If your credit rating is higher or lower than you originally thought, you can target your search for car financing towards the most appropriate lenders.
Download this infographic.