Bad Credit Car Loan Interest Rates – 3 Tips To Save Big On Your Next Loan
Getting any type of loan is difficult enough these days, let alone if you find yourself with bad credit. Unfortunately, the economic fallout from the crisis is only going to make things worse, but all isn’t lost. You see, if you take the right approach, you needn’t worry about bad credit car loan interest rates. This article will outline a simple approach that can help you save big on your next application.
1. Start By Increasing Your Down Payment
If you have bad credit then most lenders are going to charger you a higher that average rate of interest. The only way to increase your chances significantly of getting approved, is by increasing the amount of any down payment on the car you are trying to get. Not only will you have a greater chance of being approved, but your interest rate won’t be as high. The less you borrow, as poor credit risk, the greater you gain favor with lenders.
2. Show Solid Proof Of Consistent Income
Lenders like to know that when they give out a loan, there is strong likelihood that it will be repaid. The greater your demonstration of ability to repay, the greater your chances of being accepted. But no only that; you see, even though you may be deemed a bad credit risk, the fact that you appear to be able to manage a debt, at least through income proof, will cause lenders to relax their lending rates to you.
3. Scour The Internet For The Lowest Rate
So, we’ve established that your rate is probably going to be a bit steep, but that doesn’t mean you should settle for the first quote you get. There are literally hundreds of lenders online, and the competition among them for your business is fierce. This means no matter how bad your credit, a little digging can get you a favorable rate. Online companies tend to have cheaper lending rates traditionally anyway, so you can’t go far wrong by using an online loan provider.
You should be able to find some pretty decent bad credit car loan interest rates, now that you’ve read this article. The key to your success is taking action, so start looking online today.