subject: Finding Car Loans For Low Credit Scores [print this page] It's a fact - people with low credit scores pay higher interest rates on car loans and can end up getting further into debt as they struggle to keep up with crippling repayments. If you can, the best advice is to repair your credit rating by ensuring that you pay all your bills fully and on time over time, your credit score will raise and you will be a less risky loan candidate, which will ultimately save you an enormous amount of money through lower interest rates. It's also not necessarily a good idea to be taking on a loan when your financial situation might be less than healthy. However, sometimes you need to buy a car before you have the time to repair your credit score and, although you will have to pay more, car loans for low credit scores are available.
You have a few options when it comes to where to look for car loans for low credit scores. The traditional method is to pop along to your bank, speak to your manager and arrange it through them but many banks don't look too favourably on those with less than perfect credit and won't approve car loans for low credit scores. If they do, they can take a while to process applications. Don't discount your bank though if you are a loyal customer your bank manager might be able to work something out with you and maybe even offer you a better rate than expected.
Many people head straight to the dealership, decide on a car they want to buy and finance it through the dealer, but that is not advisable, especially when it comes to car loans for low credit scores. Dealerships take a cut on all finance arrangements that they organise so you're bound to end up paying more, especially if you haven't done your research first and figured out what rate you can get from other providers of car loans for low credit scores. If you would rather arrange it through the dealership, at least be armed with the knowledge of the rate you are eligible for that way you won't get ripped off and you have a bargaining tool with which to negotiate a better rate.
Often the best, the quickest and the easiest route to obtaining car loans for low credit scores is via an online lender. You can apply for an auto loan online any time of day or night and often they can be granted and in your hands overnight. There are also many e-lenders that specialize in car loans for low credit scores so you know you won't be judged and are pretty much guaranteed to be approved. Using a comparison website makes the process even easier simply type in your details and they will bring up a list of lenders and their rates and conditions in an easy-to-compare format.
As long as you keep in mind that interest rates for car loans for low credit scores will be high, there is no reason that you can't obtain an auto loan if you have bad credit. You can even use the loan as a great opportunity to improve your credit score just ensure that you keep up your repayments and your credit will soon look much healthier.
