There are all types of loans out there for people with bad credit, including debt consolidation loans, personal loans and auto loans for people with bad credit. Awhile back, that might mean you’re paying as high as 20 percent interest on an auto loan, but these days, you can get much better rates than that.
Auto loan rates are down, mortgage rates are down, and you can get just about any type of loan these days at a much lower rate. Now you might be saying to yourself that it doesn’t mean people with bad credit can get approved. However, there are plenty of ways to get car loans for people with bad credit.
Some people will tell you that auto loans for people with bad credit are still going to be based quite a bit on FICO score, but that’s just simply not the case. Your job is your credit with many of these companies that cater to people with less than perfect credit. You do need a job, and you need to be able to prove your income.
If you’re not sure who can approve you, you can always look at what they require and work on pre-approval first. If things don’t look right, they will tell you and you won’t have necessarily taken a hit on your credit report. You can always have your credit report pulled already to show them and see if they can tell you if you’re going to likely be approved.
Don’t expect to get a loan with a down payment, but all dealerships want a down payment it seems like, regardless of credit history. They would at least like you to think that. If you want to try without a down payment, by all means go ahead. You just might get what you want.