Bad Credit Auto Loans – Lowering your Loan Rates – Is it possible?

“Lowest Rates for Bad Credit People”

“Bad Credit Okay”

“Got Bad Credit? It’s OK”

“Cheapest Rates for Poor Credit”

“2.44% Auto Loan Rates for everyone”

Such myths are propagated by lenders. But, don’t get fooled by these marketing gimmicks. Getting lowest market rates on auto loan is not possible with bad credit history. Even though lenders market otherwise, credit history is an important factor for determining your credit score.

So, forget lowest rates. The lowest prevailing rate in the market is reserved for people with perfect credit history. Most lenders offer cheapest rates to car buyers with credit score more than 680. So, what should you do when you are not desired by the lending community?

Well, it’s simple. Don’t get lured by these advertisements. Even though lowest market rates are not available for you, you can certainly get affordable rates. You can improve your loan application and get better rates in comparison to other bad credit borrowers. Here’s your low rate guide when bad credit history seems to be your constant partner.

Be Realistic

Don’t think you can buy your favorite Lamborghini or your BMW now. You must take baby steps when you have bad credit history. Buy a reliable used car that can take you places and is low on maintenance. After your score improves, you can increase your car budget.

Remember that a bad credit buyer gets higher auto loan rates. And, if you opt for an expensive car, your loan amount will increase exponentially. So, choose an affordable vehicle and make your loan affordable.

Be Prepared

It doesn’t make sense to plunge into the auto financing world without thorough preparation. If you do so, your credit score may end up more bruised than before. So, learn your finances. Know how much monthly payments can be made by you.  It will help you in staying on top of the loan deal.

*Note- If you are not in urgent need of an automobile, you can start improving your credit score. This can be done by ordering your copy of credit report. Check it and remove errors (if any). Also, pay off few debts to better your score. Remember that this strategy will take at least 6-7 months as improvement in credit score takes time.

Only work with the Expert

You are facing constant rejection because you are applying with wrong people. Even though they advertise “Easy Approval Criteria”, most banks and credit unions check every aspect of your finances. They don’t approve auto loans of people with blemishes on their credit reports. So, stop wasting your time with such lenders. Instead, go for sub-prime lenders.

Also, don’t be in a hurry to submit the application form. Ask the lender about ways in which you can increase the probability of getting affordable approval. Here are a few common things that will get you lower rates on bad credit auto loans:

Down Payment – Most lenders ask for down payment to lower the loan amount and the risk factor. If you do not have ready cash, you can opt for trade-in/sell your old car to generate money.

Co-Signer - Lender will have the assurance of regular payments which will definitely help in reducing rates.

So, this is how you can manage relatively lower rates on auto loan. Be strong. Don’t get conned by deceits. All the best for the best of rates!

Car Destination is your perfect destination for bad credit car loans. The company has been working with sub-prime auto buyers for several years. It has a competitive edge in the field of bad credit auto loans. Apply now and avail better rates.

Simple Ways for ensuring Lower Rates on Bad Credit Auto Loans

Buying a Car – EASY

Buying a Car with Lowest Auto Loan Rates – IMPOSSIBLE

It is the story of every bad credit buyer in the nation. Today, every buyer with credit problem can get a car loan but getting cheapest rates is still a difficult task. Lenders and dealers will promise you lowest rates (as low as 2.49% for 6 year car loan) but provide shocking rates while signing the contract.

Here’s why

Lenders offer lowest rates for people with incredibly high credit score. Also, lenders charge higher rates from bad credit buyers because of the high risk factor. It means bad credit buyers should forget getting lowest market rates on auto loans. Instead, you should focus on lowering the loan rates that are available for you. You can still manage affordable rates. And, to get those rates you have to work hard. This way you will not get minimum rates but at least your loan will become much more affordable.

Here’s how

After years of experience in the sub-prime market, I have compiled the list of things that can help you get affordable bad credit car loan rates.

1. Make a car buying budget. Ensure that you don’t go overboard.

2. You will need down payment and co-signer as additional support.

3. In case of no down payment, you can sell your old car or opt for trade-in.

4. Always, always and always search for a sub-prime lender and not a bank/traditional lender.

Here’s what you should not do

Few bad credit buyers commit these mistakes and end up ruining their credit score. Make sure you don’t fall prey to such blunders.

>> Choosing an Expensive Car

Never buy an expensive car with bad credit history. It will increase your loan burden and cause harm to your credit score as well. Instead, opt for used cars as they are available at a lower price. This way you will be able to keep the loan amount under control.

>> Not considering your DTI Ratio

If you don’t consider current debts before buying a new car, you are inviting trouble. It is because you may end up increasing your debt to such an amount that it will become difficult to repay. And, when you cannot make regular payments, your score will further deteriorate. So, do calculate your DTI and ensure that you don’t have unmanageable debt.

So, this is how you can manage better rates despite your bad credit score. I understand that it looks hard but remember the words of Beverly Sills:

“There are no shortcuts to any place worth going.”

Car Destination gets you low rate bad credit auto financing in minutes. Get ready for lower rates on auto loans despite bad credit history. Apply now and enjoy 0 cost loan quotes.

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