Already on ArticleSlash?

Forgot your password? Sign Up

Subprime Auto Loans - How To Get Financed With Bad Credit


Visitors: 288

Finding a bad credit auto lender is simple. When buying a new or used car, the auto dealer may offer bad credit financing, or refer you to a good lender. Even so, car buyers should consider arranging their own financing. Bad credit auto loans are tricky, and some lenders will take advantage of you. For this matter, it helps to choose a good lender and know your available options.

Check Your Personal Credit Report

Before applying for an auto loan, bad credit applicants should request a copy of their personal credit report. Review the report, and take note of your FICO score. Upon submitting your application, the auto lender will base approval on your credit score and credit history. Additionally, checking your report prior to applying reveals your credit standing. Some auto lenders classify sub prime borrowers as persons with scores below 640. On the other hand, another lender may qualify a borrower with the same score for prime rates.

Compare Different Auto Loan Rates

Making comparisons is a surefire way to get approved and find the best auto loan rate. Auto lenders qualify applicants for varying rates. If you have bad credit, failing to shop around and obtain multiple rates will cost you more money. For example, a dealer’s finance company may charge an interest rate of 10%, whereas a credit union may charge the same applicant 8.5%. The percentage difference could save you $50 - $70 a month.

The best way to compare rates is to visit an online auto loan broker site. Request a no-obligation quote, and wait for a response. Each quote received will include details such as qualifying interest rate, loan approval amount, loan term, and estimated monthly payment. Review the quotes carefully, and pick the lender that offers an affordable deal.

Make Efforts to Boost Low Credit Score

Improving your credit score doesn’t happen overnight. However, if an auto lender recognizes improved credit habits, they are more inclined to approve a bad credit loan application. Before applying for a car loan, practice submitting regular payments to creditors. Furthermore, attempt to reduce your overall debt ratio.

For a list of Recommended Poor Credit Auto Loan Lenders , visit ABC Loan Guide , an informational website about various types of loans.


Article Source:

Rate this Article: 
Bad Credit Auto Loans The Downside of Bad Credit Auto Loans, and the Upside
Rated 4 / 5
based on 5 votes

Related Articles:

New Auto Loans - Simple Way to Get Financed for Your New Car

by: Patricia Martin (September 06, 2011) 
(Finance/Auto Loans)

Bad Credit Mobile Home Loans and Mortgages - Is it Possible to Get Financed ..

by: Benjamin Robert Ehinger (August 10, 2008) 
(Finance/Mortgage Refinance)

Subprime Auto Loans - What They Are and Where to Find Them

by: Henry Andrews (September 11, 2008) 
(Finance/Auto Loans)

Take the Driving Seat With Subprime Auto Loans

by: Carney Alden (July 24, 2008) 
(Finance/Auto Loans)

Subprime Auto Loans - Flexible As Per Your Economic Condition

by: Kalvin Jason (September 15, 2008) 
(Finance/Auto Loans)

Subprime Auto Loans - Shun Your Monetary Worries

by: Kalvin Jason (August 28, 2008) 
(Finance/Auto Loans)

Subprime Auto Loans Helping Poor Creditors to Buy Vehicle

by: Carney Alden (October 09, 2008) 
(Finance/Auto Loans)

Helping Poor Creditors in Purchasing Vehicle Subprime Auto Loans

by: Kalvin Jason (July 17, 2008) 
(Finance/Auto Loans)

If You Have a Bad Credit History, Consider Subprime Loans

by: Herald Gumpsten (August 08, 2008) 

Bad Credit Auto Loans The Downside of Bad Credit Auto Loans, and the Upside

by: Benjamin Robert Ehinger (July 23, 2008) 
(Finance/Auto Loans)