Here are the most frequently asked questions about bad credit auto financing
What you need to know about bad credit auto financing
If you have poor or bad credit, we’re sure have a number of questions about what’s the best way to know that you are getting the right information about auto loan financing. Having been in this market for a number of years, we have lots of experience. Following are answers to the questions we are most commonly asked.
Q. If I have bad credit, can I get auto financing?
A. Definitely, yes. It’s not as easy as if you had good or excellent credit and you may have to pay a somewhat higher interest rate but it’s definitely available.
Q. What’s the first thing I should do to obtain financing?
A. Start off by knowing your credit score. This lets you know for certain where you stand and generally what you can expect.
Q. Where do I start looking for a loan?
A. We suggest you start looking on the internet. The reason is that its fast and you can survey a number of lenders and dealers very quickly. This will give you a good feel of the market you are working in.
Q. What’s the most important step I can take to reduce the interest rate I have to pay?
A. Try and put some money down on your next car purchase…………even if it’s just a few hundred dollars. Every little bit helps.
Q. Are there other ways to further reduce the interest rate I have to pay?
A. Yes, try for as short a term loan as you can and also we open to a wide range of cars. Rates are lower on cars that aren’t too popular.
Q. Should I get my financing lined up before looking for a car?
A. Without a doubt ………yes. You are in a much stronger position if you have your financing locked down before you buy your car.
Q. Where’s the best place to get my auto financing?
A. There are several places to look. As we answered earlier, we think there are many really good lenders and dealers on the internet that specialize in poor and bad credit. Local dealerships can also work with you. Banks and credit unions usually prefer good credit loans.
Q. Does a cosigner help?
A. A cosigner does help if they have much better credit than you do. If they don’t, then they don’t bring much to the table.
Q. If I have collateral should I pledge it up to get a better rate?
A. We often find that collateral is only helpful as a last resort. Make every effort you can to get a loan without the collateral. The residual value of the car along with the interest rate should provide enough “collateral” for a lender.