The Auto Loans
Auto loans are often the quickest way to get a car, truck, or SUV. Depending on your credit and the lender you go through, a new car can range from above 20% APR to below 5%. You can save money by financing a used car above its value or by shopping around to multiple lenders to get the best rate possible. It’s also important to be honest about any past due bills or open credit card accounts if you’re applying for a car loan.
Best Auto Loans for Bad Credit
Bad credit can affect your ability to get an auto loan, but it doesn’t have to be a deal breaker. If you’ve got a few late payments or other blemishes on your credit history, you still have options when it comes to financing a new or used car.
You may want to consider:
• An auto loan with no credit check – These loans are often offered by dealerships and carmakers themselves. You’ll need good income in order to qualify, but the interest rates tend to be higher than those of traditional lenders.
• Auto loans for bad credit – Lenders such as Credit One and CitiFinancial offer subprime financing with interest rates as high as 25% APR. But these are still better than many other loan products out there.
• Auto refinancing – When you refinance an existing auto loan at a lower rate, you can use the savings for repairs or maintenance on your current vehicle. You can also use the money for something else entirely, like buying a new car outright or paying off another debt.
• Buy Here Pay Here dealerships – These dealerships often offer financing with zero percent interest and low down payments for people with bad credit. You’ll need to check with the dealer to see if they run a credit check, but this option can be a good way to finance your next car.
