If you are looking to take out an auto loan, or any type of loan for that matter, you’re going to have a tough time if you have a less than desirable credit score. Even if a company does approve you, chances are you will be faced with astronomical interest rates over 10% higher than the national average. So what can a person with bad credit do to secure a reasonable loan?
As it turns out, there are companies out there who offer auto loan financing with bad credit. These places are well known for working with individuals to provide them with multiple options, low rates, and more. All you have to do is apply!
First Things First
While working on raising your credit score, it is a good idea to monitor your score for free with a site like creditkarma.com. This way, you can keep an eye on your progress and use your improved score when it comes time to refinance your loan. Utilizing these online tools is the best way to help improve and maintain a good score.
Where to Look
When it comes to bad credit, the internet can be full of horrible advice and loan sharks looking to profit from your predicament. Instead, find a site that compares lenders side by side while showing their pros and cons, and what types of rates you can expect from them. Often times, these sites will also point out which companies are well known for working individuals whose credit is on the low side.
Using these sites, you can find a list of reputable lenders who are in good standing with the Better Business Bureau, state, and federal sites. Always make sure to double check those sites before giving out any personal information.
While they may be best known as a credit card company from their commercials featuring Samuel L. Jackson, Capital One is actually one of the biggest names in helping those with bad credit secure reasonable auto loan rates on new and used cars alike. The bank will allow you to take out a loan for any vehicle up to 10 years old, so long as it has less than 125,000 miles and is not bought from a private seller. That’s fantastic news for anyone looking to save money by opting to purchase a used car.
They will help you to get pre-approved, helping to narrow your budget by letting you know exactly how much you can afford. Buyers can also take advantage of their various online tools such as loan calculators and FAQs filled with helpful information. They also feature a tool called Auto Navigator that lets buyers compare monthly payments on specific vehicles.
Auto Credit Express
With an A+ rating from the Better Business Bureau, Auto Credit Express has built themselves around aiding anyone with bad credit, even if they have already filed for bankruptcy. They offer a wide array of options, and can help you to find some of the lowest rates possible. You won’t be restricted from applying based on the amount of the loan, or the age and mileage of the vehicle you’ll be purchasing.
They work on a case by case basis, making your experience unique while ensuring you won’t fall into a rate bracket based on your credit score.
The Best Loans
Don’t let your bad credit hold you back from securing the best rates on a reasonable loan. Capital one and Auto Credit Express are just the tip of the iceberg, there are plenty of companies out there who are willing to work with your situation.