Bad Credit Auto Loans
If you have bad credit, getting an auto loan can be a challenge. At the same time, an auto loan can be a great way to re-establish and rebuild a positive credit history. In many cases, such as when you have been turned over to collections or experienced bankruptcy, an auto loan can quickly improve your rating.
Some of the best ways to do this are to first get pre-approval for an auto loan. You can do this through a dealership but you may not get the best interest rate. It is preferable to secure pre-approval with your own bank or an online loan source before you even step foot in a dealership.
When shopping online auto loan lenders, be sure you compare several before deciding. You should also know what your credit score is as the quote application will request that information and will play a large role in the rate and terms lenders offer. Once you review all your quotes, you can choose the best one and submit the formal application.
While it is possible to get an auto loan with a poor credit score, you better your chances by submitting a sizable down payment, typically 10% of the purchase price.
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