| With most lenders, having bad credit or a past | | | | interest rate a few points. |
| bankruptcy is not a problem. Thus, you can obtain an | | | | If the lender approved you for a 10 percent interest |
| automobile loan with a low credit score. There are | | | | rate, the dealership may charge 11 or 12 percent. To |
| certain advantages to having good credit. These | | | | avoid paying the extra fees, look for private financing. |
| individuals generally pay a few percentage points less, | | | | Private financing could come from a bank, credit union, |
| which equals a lesser monthly payment. However, | | | | etc. If possible, get pre-approved before visiting |
| qualifying for a car with bad credit is easy. Here are a | | | | dealerships. |
| few tips to help you get approved. | | | | Check Credit Report for Errors |
| Requirements for Getting an Auto Loan with Bad | | | | Having bad credit does not always mean getting hit |
| Credit | | | | with the highest interest rate. Prior to applying for an |
| To get approved for a bad credit auto loan, applicants | | | | auto loan, attempt to make some credit improvements |
| must meet certain requirements. For starters, car loans | | | | and correct errors. For a few months leading up to |
| are not offered to minors. Therefore, applicants under | | | | financing a new or used car, pay all bills on time. This |
| the age of 18 must have a parent or other adult | | | | could make the difference in getting a loan with 12 |
| co-sign for the loan. Moreover, applicants must be | | | | percent interest and 9 percent interest. |
| employed and have a driver's license. | | | | Explore Different Types of Lenders |
| Auto loans are the easiest types of loans to obtain | | | | Common lenders used for an auto loan include banks |
| because they are secured. With this said, auto loans | | | | and credit unions. However, there are lenders that |
| are perfect for those hoping to build a solid credit | | | | offer bad credit auto loans at reasonable rates. Sub |
| history, and individuals hoping to raise their credit score. | | | | prime lenders are becoming increasingly popular. They |
| Skip Dealership Financing | | | | offer online applications and quick pre-approvals. |
| Securing financing through the car dealership seems | | | | Moreover, various lenders will provide a no-obligation |
| simple and convenient. Nonetheless, keep in mind that | | | | auto loan quote. This way, you can review their offer |
| dealerships will make a small profit off of your | | | | before making a decision. |
| financing package. To do so, they must increase the | | | | |