Do you have a bad credit score and need to find the best car loans near you? If so, this article is for you!
What is a bad credit score?
A bad credit score could mean that you are paying too much for the loan that you have. If the loan is over 90 days and the interest rate is higher than 8%, then it’s time to get a better loan deal. Other ways of improving your credit score are by updating your information with all three major credit bureaus, having a secured credit card and getting an auto loan.
Credit scores can range from 300 to 850. A score of 300-550 is considered bad credit. A score of 600-800 is in the fair credit range and anything above 800 is considered good credit.
Types of car loans
There are many different types of car loans, but all depend on the type of car you’re looking for. If in need for a new or used car, you would likely need a financing plan that will allow you to get a vehicle. You could also take out an auto loan for a specific period of time.
There are four types of car loans: leases, manufacturer-financed, pre-owned car loans, and new car loans. Leases are cars with no money down and no payments until the lease is complete. This type of loan might be a good option for those who have low credit scores or those who want a higher monthly payment. New car loans have the lowest rates typically because they require the most due diligence on behalf of the lender. This includes a full background check and checking to ensure that you will make your scheduled payments.
Different loan options
To find the best car loans in your area, use our tool to compare rates and terms. Just enter the information about your loan needs and we’ll show you the rates available in your local area.
There are a lot of different loan options available, but you might want to consider whether your credit score is high enough for the specific loan option that you’re looking for. The average credit score required for a car loan is usually 620, but many people have their own mileage which will require a slightly higher credit score.
How do I get approved for a loan with a bad credit score?
A bad credit score can make finding the perfect car loan difficult. You may find that it is impossible to get approved for a loan or you may just feel that your odds are too slim. In this blog, you will learn how to get approved for a car loan even if your credit score isn’t great.
Before you apply for a loan, it is important that you know your credit score. The FICO score ranges from 300-850 with a higher score being better. Apply for your loan using the auto loans option and you can sometimes be approved with a bad credit rating.
What are the rates for car loans in different states?
In 2016, the average interest rate for a car loan was 4.4%. The interest rates in each state ranged from 0% to 6.6%. The highest interest rates were in Alaska, Connecticut, and New York at 6.6%. California had the lowest at 0%.
Your best option is likely to be a state where the states have some of the highest interest rates, like Colorado.
Conclusion
Car loans are a way to purchase a new car. Although some leases also offer financing, they typically have higher monthly payments and shorter terms. So if you’re in the market for a new car but don’t want to sign a long-term lease or make large payments, then you should consider getting a car loan.
Autos.com is the best place to find the best car loans near you. Use our tool to find the cheapest rates and a lowest possible APR. With our easy-to-use tool, you can compare different lenders and get quotes on instant approval!