When the process of buying a car and a poor credit situation come together you naturally end up wanting to find some of the best auto loans for bad credit.*
The characteristics of the best auto loans in such cases are likely to depend on your own particular circumstances and financial position, but here are some basic points that could help the search.
When looking at interest rates, be realistic with your expectations. You can still try to find a competitive interest rate for your credit situation though.
An auto loan that works well for you will have a monthly payment you can afford. A budget calculator can help work out what you might be able to allocate for a car payment. Other finance calculators can estimate the total cost of a car you may be able to afford, and what the monthly payment might work out to be, based on the information you enter.
As you search for potential financing, also think about what you’ll pay in interest over the entire course of the loan.
The Federal Trade Commission recommends shopping around for auto loans before making a decision. If you’re making comparisons, it can be useful to note any conditions the lender puts in place when offering auto loans. For example, there may be vehicle requirements such as the age and mileage of the car you can purchase, and these requirements can vary lender-by-lender. Other loan conditions may include the length of terms available, minimum loans amounts, and whether you can buy a vehicle from a private seller as opposed to a dealer.
When you have subprime credit, remember that you may need to provide a down payment in order to qualify for a loan. Lenders use numerous criteria when making a loan decision and this may be among them. Trading-in a vehicle and using an auto loan cosigner might also improve you chances of qualifying. If you’ve been through bankruptcy, not all lenders will work with you, so of course look for those that will.
Options when attempting to locate some of the best auto loans for bad credit include banks, credit unions, online lenders and finance companies. Direct lender RoadLoans operates online and specializes in financing for customers with bad credit, with 18 years’ experience in that field. It has helped tens of thousands of people buy the cars they want.
The RoadLoans process is quick and easy enabling you to apply online and receive an instant decision by email. RoadLoans works with consumers with all types of credit and qualified applicants can get approved before visiting the dealership to shop for a vehicle. The company has a customer-focused approach and its support staff is on hand to answer your questions by phone or through an online chat service. Once you’ve purchased your car, there are no prepayment penalties should you wish to payoff your loan amount early.
Apply for an auto loan here.
* “Bad” or “Poor” credit generally is considered a FICO score around 600 and below by sources including the Consumer Federation of America and National Credit Reporting Association (reported by the Associated Press), Bankrate.com, Credit.com, Investopedia, NerdWallet.com and others. The Congressional Budget Office identifies a FICO score of 620 as the “cutoff” for prime loans. FICO scores are not the sole factor in lending decisions by RoadLoans.com and Santander Consumer USA.