What to Know When You Get a Car Loan And Have Bad Credit

Trying to get a car loan when you have bad credit can be difficult. Often you will wind up paying higher interest rates and having to put up a larger down payment in order to get approved. Here are a few things to keep in mind as you look for a new car and work to get approved for a loan.

Make Enough Money

If you live in Broken Arrow, OK, bad credit auto financing is available at local dealerships. These dealerships and lots often require, however, that the buyer is making a certain amount per week minimum. This will vary by location but is usually a few hundred dollars per week to be approved. In these cases, you are usually able to get approved no matter your credit, but there are some downsides.

High-Interest Rates

As with any bad credit loan, expect to spend higher premiums on interest rates. This is simply because the loan company is taking a higher risk lending to someone with poor credit and they want extra money to make the risk worth it. The interest rates will vary by the customer and the lending agency.

Down Payment

This is another one that is going to vary by dealership. While some dealerships and banks will let you get a car without a down payment if you have good credit, this is usually required with poor credit. The size of the down payment will depend on the price of the car, but a 20% down is a good place to start. This shows the lending agency that you are serious about your purchase, and they are more likely to give you a loan and give you a lower interest rate.

When you have bad credit getting a car can seem like an impossible challenge, but it is not. If you find the right car dealership to work with, then you can still get a car and work to improve your credit.

If you need a car or live in Broken Arrow, OK, and need bad credit auto financing check out The Key. Contact they can help you get a car loan after bankruptcy or any other financial disaster.

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