Tips For Getting Auto Loans If You Have Poor Credit
An auto loan is possible even if your credit score is not perfect. An auto loan is possible even if you have bad credit.
It is highly competitive in the auto loan industry so make sure you do your research and find out what deals are available. Online shopping is a great way to get quotes from multiple lenders. Many dealers have their own online sales divisions. Compare the rates and find a dealer or finance provider that offers the best rate.
Search for a cosigner
Consider a cosigner if you are unable to find a loan that is affordable on your own. The co-signer will legally be responsible for repaying the loan. The most common co-signer is a parent or a relative. You will be able to take advantage of the lower rates offered by your co-signer if you have poor credit.
Check with your bank or credit union
Although it is easier to get a loan for a car directly through a dealer than it is for you, it is not always the best option. Smaller banks and credit unions, especially those in smaller communities, are more likely to offer low rates for customers with poor credit. If you have an existing relationship with the bank, this is more likely.
The loan terms are the focus of
Low monthly payments are a common tactic used by lenders to finance buyers with poor credit. You might miss the entire cost of the loan if you only focus on your monthly payment. The monthly payment might be lower but you will pay more long-term.