All you always want to know about buying car on finance. No mater if you need car finance with bad credit or looking for guaranteed car finance. We're her to help you choose wisely.
If you are looking towards getting a car loan and have bad credit, then you need not worry. It means that there is a high risk of defaulting or not repaying the amount due to previous loans history. Banks and lenders do not tend to loan out to people with a bad credit most of the times. However, there are ways through which you can avail a car loan despite having bad credit. Your credit score defines how much interest you should pay.
A bad credit score which is less than 700 will end up having you pay higher interest rates. Whereas, a perfect credit can get you a car loan for an extremely low-interest-rate. Having a bad credit serves as a deterrent for lenders and banks providing you with car loans. In this case, banks and financing companies will charge you an excessively high-interest rate for getting a car loan with bad credit.
After you file for a car loan, the banks and lenders will go through your history. They will also look into your income and other details necessary before giving a loan. What you might define as bad credit may not be bad credit for your lender. Hence always check before you just choose a car loan, which has high-interest rates. Banks and lenders will also make a list of both brand new and used cars according to your credit score.
The best way to get a car loan with not the best possible credit score is to opt for a loan which is spread out over a shorter period. This would mean that you pay a lower interest rate and end up paying less. This also helps in increasing your credit score for future purposes.
In such difficult situation, the best option is to choose auto-financing companies and banks rather than car dealers since they are more reliable. Try to opt for new cars rather than used ones to keep your interest rate low. So in that situation, you can still get a car loan but with a few consequences.