Legitimate online auto loans are available when you need to buy a car when is declined by banks and credit unions for a car loan. These are designed for car buyers with credit score under 600, which falls under the minimum requirements of banks. If you are going to consider auto loans for people with bad credit, you need to make sure your income and personal finances are strong enough to afford the higher lending rates. Click here to get a free quote now
Most likely, you have made some financial mistakes in the past, such as defaulting on a loan, late in repaying your debts/loans, high credit card debts, having your car/house repossessed, filed for bankruptcy etc. A bad credit score can affect you for a long time even when you have recovered financially and paid off all your debts. If this is the case, then buying a car with bad credit will not be a high risk decision even though it can still be expensive.
Buy A Car With No Money Down And Bad Credit
The recommended route is to fix your bad credit problems first before taking any big loans for car purchases. If you cannot wait, try to place a bigger down payment and never try to buy a car with no money down and bad credit. It will only aggravate the effects of high interest rates on your finances. At the same time, work on improving your credit score so that you are in time to refinance your bad credit auto loan.
There are many online and television promotion offers on guaranteed auto loans for bad credit programs available. In fact, there are many more such lenders willing to give poor credit car loans so make sure you get a few quotes and compare prices before you buy. Look at their business profile at the Better Business Bureau web site for any consumer complaints as well. You may want to avoid dishonest auto loan lenders which may sneak in some hidden fees after they have snare you with a cheap discount auto loan with bad credit.
Buy Here Pay Here Bad Credit Car Lots
You can also find buy here pay here bad credit car lots and dealerships with out there that offer instant approval auto loans for poor credit history. Instead of using your credit score, they will ask for income documentation and a big down payment to secure your car loan. Note that the interest rates may not be as competitive as compared to legitimate online car loan companies.
Many inexperienced car buyers with low FICO score often fall prey to such BHPH car loans with no credit check. They find it very convenient to view cars, test drive and then settle the financing in house at a single location. These dealerships also tend to advertise heavily on the local TV and radio media to attract customers to walk in without comparing bad credit auto loan rates online in advance.
Cheaper Car Loan From Major Banks With Cosigner
There are some ways you can try for a cheaper car loan from major banks. Firstly, ask your friends and family to be your car loan cosigner. If your FICO credit is 550 while your cosigner is 720, you will have no problem having the bank to finance your new car purchase. Note that your loan cosigner need to be responsible for paying back the bank in the event that you default on payments. You can also try to refinance auto loans with cosigner to get out of high interest debts.
If you do not want to risk your relationship with friends or family, then you just need to be more diligent in comparing prices and rates for car loans. It does not matter whether the companies call their products as guaranteed affordable car loans for bad credit, what is important is how much you need to pay to buy a car.