Press "Enter" to skip to content

Posts published in “no credit”

Auto Added by WPeMatico

How to Get a Car Loan if You Have Bad Credit

Are you in desperate need of a car but don’t have the best credit? If so, you might feel like your situation is hopeless, but that’s not always the case. When I bought my first car I had zero credit. My first couple tries at getting a loan had me feeling like I’d either be carless or paying a 20% interest rate. It took a lot of looking to find a loan that made sense. Here’s how to get a car loan if you have bad credit or no credit. Check Your Credit Score When is the last time you checked your credit score? Is it really as bad as you think it is? If you haven’t checked your credit score for a while you can check it for free with Credit Sesame. This will give you a clear idea of what you’re working with and what to expect in terms of loan approval and interest rates. According to Bankrate the average credit score you’ll need to purchase a new car is 714. The average score you’ll need to purchase a used car is 655. Here is a chart, also from Bankrate, showing the average interest rate for new and used cars based on credit score. (Even if your credit score falls below the averages there is a chance you’ll still qualify for a car loan.) Once you know your credit score you’ll have an idea of what a going interest rate is for your situation. (This will help keep you from getting taken advantage of!) Also, if the interest rate for your current situation is astronomical you might need to postpone car shopping while you bring your credit up. Check for Preapproval with Local Banks and Credit Unions If you checked your credit score and it falls in the non-prime to deep-subprime range you’re going to need to do some serious legwork. Start with local banks and credit unions. They have more discretion over their in-house loans than the big banks and will be more willing to work with you. I got my first car loan when I had…

Cookies help us deliver our services. By using our services, you agree to our use of cookies. More Info | Close