Poor Credit Loan

Posted by admin on September 27th, 2009 at 12:00am

Question:
Am I able to obtain a poor credit loan for an automobile of my choosing?
I want a particular car. I realized that with every poor credit loan lender they have to provide you with a car of their choosing. How may I get what I need with a co-signer? I really do not want to get rejected again.

Answers:
Do you currently have a co-signer? if your co-signer has decent credit, it will not be an issue.
I have poor credit, and my score is approximately 540, and my car has been repossessed in the past, but I got the vehicle I wanted through a dealer chain. The fact that it was a national chain was a significant factor since they cooperate with more banks than the independent dealers.
My interest rate is not good, and i had to settle for a six year loan rather than five, but I achieved it without any co-signer, which means i’m re-establishing my credit and can refinance my vehicle in a year or two.
so, based on what you want, try to locate a dealer that works with a larger number of banks than your local dealers. Be certain you have good monthly income and a significant down payment. They will want between 25% and 50 percent, but you can possibly get away with as small as 20%. if you do not currently have these two things, find a co-signer.
Also, i forgot to mention that I initially set out for a used vehicle but could only get accepted for a new vehicle. it seems the bank views that as less of a risk because of the higher value.

Yes you would be able to obtain the loan, but your interest rate is going to be so high that during the first year or so, all you will be paying on is the interest, if you get a co-signer with you, it will probably make it easier to obtain the loan, but don’t let them suck you in to a very high interest rate, or else you will be making payments on that car for a very long while if that happens. Best of luck.

Under Loans for Bad Credit