5 Secrets How To Get A Good Rate Car Loan With Bad Credit Score
A bad credit score will not disqualify you from receiving a car loan. Here are some tips that can help you receive more favorable terms for a car loan with bad credit.
1. The first way to receive the best car loan rates for your situation is to bring a down payment to the table. Ideally, you’ll want to put 20% down, if this isn’t feasible aim for 10%. The more you are able to put in for a down payment, the less your interest rate could be.
2. Next, you may want to consider a cosigner. Though there are many lenders that offer car loans with no credit, they come at higher rates. To combat this, find someone you know who has a good credit score and is willing to sign for you. This can drop your interest rate dramatically, which will save you much money in the long run.
3. You also increase your chances of receiving better rates on a car loan with bad credit with a stable job. If you have been at your place of employment for more than six months, you are showing a pattern of responsibility. Along with stability, having a higher income will also make you much more attractive to lenders.
4. By comparison shopping online, you can find the best deals for car loans for college students. When you do a little research you can find the companies with the best reputation that offers good rates for car buyers. This can save you money on a car loan with bad credit.
5. Once you have been in a loan for a year or two, you can try to do a car loan refinance. As long as you have been making all of your payments on time your credit rating will improve, which will make you a better candidate for credit. Use this to your advantage by asking to refinance your loan. If your current financial institution won’t do it try to refinance at your local credit unions as they offer some of the best rates.
By following these tips, you can receive better rates on a car loan with bad credit. This in turn can save you much money over the course of your loan.