Poor Credit Car Loan
Posted by admin on July 18th, 2009 at 12:00am
Question:
Has anyone here had a poor credit car loan?
I have poor credit, very bad, and need a vehicle, so I am thinking about applying for a poor credit car loan since I have no co-signer. Has anybody here ever taken one out? Do you wish you hadn’t? What kind of interest rate did you have to pay? Thank you.
Answers:
The interest rates for borrowers with poor credit can be anywhere from 15% to 29%. It is all based on what State you reside in and the specific details of the deal. The people that result in regretting getting a poor credit car loan are those that go too far.
Here is a very good tip: if you have poor credit, Do not get into the bad habit of expecting a 15 to 20 thousand dollar vehicle. You may be able to locate a place that will have you approved on one, but you may lose your leg due to the interest rate. If you are sincerely wanting to rebuild your credit rating and join the ranks of many others that can purchase whatever they want and whenever they want, then purchase a car that’s cheap. If you are required to pay a high APR, why not pay it towards a small amount? Use the additional money you will get to keep and pay off whatever is causing your credit rating to be bad. Do this two, perhaps three times, and before you know it, you’ll be able to purchase something you actually want and maybe have a lower payment than you had before.
Just be certain that you will never be late on anything in the future.
My partner was doing it when I met her and she happened to be paying 23 percent on a poor credit car loan.
Essentially, it was a $400 a month car payment for six years on a 17 thousand dollar car.
If she would have paid that much during the loan, that is the same as about $29 thousand in total payments for a 17 thousand dollar car.
It is painful to look at the interest being paid every month being larger than the principal being paid.
We refinanced very quickly after she established and built up her credit rating a little.
Under Cars and Bad Credit