How To Get A Bad Credit Auto Loan The Right Way

Do you want to buy a car, but have low income or have suffered bankruptcy or have lots of unpaid bills? Then bad credit auto loans are definitely for you. Though it involves high interest rates but when a car is a necessity then it can be overlooked. Read on to learn how you can get bad credit auto loans:

You need to provide the proof of your employment, your income, and your residency to the auto loan company. If you have a temporary job or have very low income, under $1500, then you will not be able to get any bad credit auto loans.

Update your credit report accurately. Credit report showing a score of 640 or less is the range for bad credit auto loans. Also make sure that you do not apply for other loans as they will reflect negatively on your credit report.

Calculate the down payment which you can easily come up with. Get as much cash as you can to put down on the car; it will help in making the loan cheaper. Moreover, if you go for a low-mileage car or a relatively less expensive newer model car, then your monthly payments will be lower but the length of the loan will be longer, and the total cost will be more as more interest will be applied on it. It is recommended to go for the shortest affordable loan. The interest rates vary; you may be able to get a rate as low as a few percentages above the regular auto loan or as high as 20 – 30%.

Tags: ,

Leave a Reply

You must be logged in to post a comment.