I’ve Got Bad Credit - Will That Affect My Auto Loan Rate?

Like any other loan, bad credit will affect your ability to get normal interest rates on auto loans because you are considered a higher risk. There are, however, several different companies that offer auto loan rates for people with less-than-perfect credit. If you have bad credit, you should expect to pay higher interest rates and realize that getting a loan will be a difficult process.

I Don’t Feel Like I’m Getting a Fair Chance on My Application

Lenders will sometimes drop your application immediately if they see bad credit. The best way to get better auto loan rates is to improve your credit score before you apply for a loan. You can do this by paying your bills in a timely fashion and consolidating your debt onto one card. Also, make sure that you review your credit report before you apply for an auto loan in case it contains errors. You can fix these mistakes by filing disputes with the appropriate credit bureau. Even one small error could end up costing you thousands of dollars on an auto loan. Unfortunately, you still may not get a fair chance on an auto loan application if you have poor credit. So if you want your application taken seriously, you need to do all you can to improve your credit at least to an average level.

There Are Some Options Out There for You

Bad credit doesn’t necessarily have to preclude you from auto financing for the rest of your life. You still have other options you can pursue when you need an auto loan. You will probably have to pay more in interest and fees, but at least you will have some form of financing. Finding an auto loan and paying it on time consistently will also help you rebuild your credit so you can secure better rates next time around.

Keep Up The Good Credit Repair Work

If you currently have bad credit, do everything you can to raise your score. Once you’ve done everything you can to boost your score, try shopping around for several auto loan quotes. The more quotes you receive, the more likely you will be to find a competitive rate.