Fri, Jul 18th - 12:40AM
Lowest Rates on Bad Credit Auto Loan – The Truth behind it
“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.
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.
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 low rate auto 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.