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Bad Credit Auto Loan
 Bad
Credit Auto Loan, Poor or No Credit Auto Loan, Bankruptcy.
Bad credit and poor credit record usually cause
much higher interest rates and even keeps you from opening a checking
account, but financing a car may help You improving Your credit record
and get new car at the same time - through the sub-prime loan.
Interest rates will be higher than usual, and You'll face restrictions
when it comes to car types You want to buy, and their price-range.
(No RV's, commercial or vehicles for business use, limousines, ATV's,
desertbikes, etc.)
Getting
a poor credit auto loan from a dealer is not a good idea, it usually
involve too large interest rates, high rebates, overpriced car value
and overall price that turns out to be just too high. Online auto
financing from an independent source (direct financing),
on the other hand, gives You the flexibility, and opportunity to
get a better deal if You run on it, because it's non-obligatory.
If You haven't checked Your credit score yet, it's time to do so.
Get a free
credit report online now.
If Your credit score lays below magical line at 600, be careful when
applying for loan. If Your score is <550 consider repairing
Your credit before applying for auto loan.
(Read more on credit repair)
TIPS:
- Having a co-signer with good credit status will definitely
help your chances of getting an approval.
- Stay away from long and large loans!
- Repair Your credit, it
may take up to 60 days, but it's definitely worth waiting for!
What is the Price you are already
paying for Bad Credit?
| If
you are making payments on a car, you are probably
paying between $5,000 and $9,000 more in interest just
for having bad credit. This added interest shows
up every month in a higher payment. |
| Credit
Status |
Rate |
Payment |
Over
5 years |
Monthly
Cost of
Bad Credit |
| Perfect |
10% |
$424.94 |
$0.00 |
$0.00 |
| Mildly
damaged |
14% |
$465.37 |
$4,722.54 |
$76.17 |
| Damaged |
20% |
$529.88 |
$8,593.30 |
$138.60 |
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| Bad
credit in auto financing can really hurt, but it
is nothing compared to the cost of bad credit when
a home is involved. A typical home can cost between $50,000
and $130,000 more in interest if you are buying
the home with bad credit, as indicated below. |
| Credit
Status |
Rate |
Payment |
Over
30 years |
Monthly
Cost of
Bad Credit |
| Perfect |
7% |
$655.30 |
$0.00 |
$0.00 |
| Mildly
damaged |
9% |
$804.62 |
$50,155.24 |
$139.31 |
| Damaged |
12% |
$1,028.61 |
$130,791.63 |
$363.30 |
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| If
you are looking to make a major purchase in the
next 6 to 12 months you should obtain copies of
your credit reports from all three credit agencies
ASAP. You can learn more about obtaining and reading
your reports as well as a variety of ways to dispute
negative information by ordering your copy of "Give
Yourself Credit". |
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