How to secure a bad credit car loan
Can you secure a bad credit car loan?
Your bad credit car loan options can be limited. Your credit score plays a key role in your ability to finance a new vehicle, so a challenging credit history can cause trouble when you visit the dealer.
The good news
Nevertheless, bad credit car loan applications are more promising than before. A recent study conducted by CNW Marketing Research shows that subprime new-vehicle lending is up 92 percent compared with last year. If you are searching for a new auto, today's market is shifting in your favor.
The bad news
Even with an increase in lending approvals for new-vehicle purchases, remember that your subpar credit can stick you with subpar rates. Dealers advertise tempting offers such as big rebates and low-interest financing, but the fine print reveals an important fact: Not everyone qualifies for these deals. In fact, only 1 in 10 can take advantage of these promotions.
Make your own news
Unless you are in desperate need of a new automobile, waiting to strengthen your credit history can pay off. Check your credit report to ensure there are no errors, and focus on paying down any credit card balances. With some additional points, you may be able to secure better interest rates or explore those attractive dealer offers.
Looking for a car now? Even with bad credit, car loan quotes are only a click away. You can search for the best auto loan rates to determine averages in your area.