You can’t get to work. You can’t get to school. You struggle to even buy groceries. Rest assured, you need a car.
Unfortunately, you have bad credit. Fortunately, there are bad credit auto loans available out there.
Interested in learning more about them? Then read on. Here’s what you need to know about the best bad credit auto loans.
What Is a Bad Credit Auto Loan?
A bad credit auto loan is an auto loan for those whose credit is below average. Below average, in this context, is generally regarded as below 650. Typically speaking, you can get a bad credit auto loan as long as your credit is above 500.
It’s important to note, though, that these loans carry very high interest rates. Therefore, over the course of the loan, you’re going to pay a lot more for the car than you would if your credit was great or even decent.
Ideally, you’ll improve your credit and then take out a loan. However, if that’s not possible, a bad credit loan will help you get back on the road.
Where to Get the Best Bad Credit Auto Loans
If you’re going to obtain a bad credit auto loan, you’re going to have to know where to get one. We’ll discuss the common lenders for these loans below.
Yes, you can get bad credit auto loans at banks. Note, though, that not everyone has luck with this method. That said, if you’re already in good standing with a particular bank, you have a much better shot at obtaining the loan you require.
So, if you’re a member of a bank or credit union, ring them up and inquire about getting a loan despite your low credit score. They might be willing to work with you.
You might also be able to get a bad credit loan from an online lender. To do this, you could simply Google something to the effect of “best loan for bad credit”. This will return a number of results and should help you find some lenders.
If you don’t have any luck with the other two options listed, you might be able to obtain a loan at the dealership from which you purchase the vehicle. Most dealerships will work with customers to make as many sales as possible.
Note, though, that this is typically the most expensive route to go. Because your credit is so low, it’s a bit of a risky transaction for the dealership and its lending partners. Therefore, most loans you receive from dealerships will come with huge interest rates.
All of that said, every dealership is different. So, if you’re looking for a dealership to finance a new car, it’s worth a shot.
Bad Credit Auto Loans Are Available
At the end of the day, bad credit auto loans are available. While they might not be the most desirable options, they will get you on the road. So, consider the options above and find the best bad credit auto loans that you can; your new ride is right around the corner.
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