The Truth behind Lowest Rates on Bad Credit Auto Loan
“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. Even if your lender says you can get lowest rates on bad credit auto loans, the truth is exactly the opposite.
So, forget lowest rates. The lowest rate is reserved for people with perfect 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 lose heart. Even though lowest rates are impossible, you can still avail affordable rates. You can get better rates in comparison to other bad credit borrowers. Here’s how you can do it.
Be Realistic
A bad credit buyer gets higher auto loan rates. And, if you opt for an expensive car, your total loan amount will become unaffordable. So, this is not the ideal time for buying your favorite Lamborghini or BMW. Start with an inexpensive and reliable used car. It will help in reducing the loan amount.
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.
*Note- If you are not in an urgent need of an automobile, you can start improving your credit score. For doing so, order your copy of credit report. Check it and remove errors (if any). Also, pay off few debts to increase 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
One reason of constant rejection can be applying with wrong lenders. Even though most banks and credit unions advertise “Easy Approval Criteria”, they check every aspect of your financial condition. They don’t approve auto loans of people with bad credit. So, stop wasting your time with such lenders. Instead, opt for expert sub-prime auto lenders.
Also, don’t be in a hurry to submit the application form. Ask the lender for suggestions that can lower your loan rates. Here are a few common things that will get you affordable rates:
Down Payment – Most lenders ask for down payment to lower the loan amount as well as the risk factor. If you do not have cash, you can opt for trade-in. Also, you can sell your old car to generate money.
Co-Signer – With a co-signer in picture, the lender will have the assurance of regular payments. This will definitely help in reducing interest rates.
So, this is how you can manage relatively lower rates on bad credit auto loan. Be strong.
All the best for the best of rates!
When you want to secure low interest rates, you must trust a bad credit auto loan expert. Trust CarDestination.com and the company will help you in getting competitive rates on auto loans. Apply now.