Bad credit will result in higher interest rate or in most cases an outright denial of credit when applying for a car loan, however there are options. Bad credit is usually a sign of getting behind or not paying your debts, so larger banks will not take on the risks however there are some auto loan companies willing to take the risk but will have higher interest to offset the risks. There are a few options that can help with getting a loan and potentially lower the interest:

• Large Down Payment
• Personal Loan
• Buy Here Pay Here
• Collateral Loan

Large Down Payment

A larger down payment will reduce the size of the loan which can help reduce the interest.

Personal Loan

If you can get a personal loan from your bank, you can usually get better interest rates as [...]

 

How to Get The Best Rate on a Used Car Loan

If you need a loan to get a new car, you want the best rate, here are a few details to help you prepare to ensure when you are ready to purchase a new or used car you will get the best rate. There are a few factors that determine the rate and how much the bank is willing to lend.

Factors in Used Car Loans:

• Condition of Car
• Credit Score
• Payment on Time History
• Types of Credit on Credit Report
• Ratio of Debt to Income
• Size of Loan

Condition and Age of Car

The condition and age of the car will affect a used car loan as the banks don’t want to lend money for a car that won’t be worth much towards the [...]