Financing a car became far more difficult following the economic crisis, but we can help. It’s essential to find a dealer or lender who will not only lend you the funds you need, but offer you a reasonable rate. We’ve established an unmatched network of dealers and finance companies who can pre-approve your loan in real time, resulting in a number of benefits:
- Quicker approval.
- Improved bargaining leverage.
- Increased confidence at the dealer.
Simply apply online, and you will be a few short steps away from the new car you want.
Fairbanks Car Dealers That Accept Bad Credit
If you’ve got weak credit, the majority of banks aren’t going to work with you. Thankfully, there are dealers and finance companies that will cater to credit-challenged consumers. In any sub-prime financing arrangement, expect elevated interest rates and higher down payments, combined with smaller loans. However, keep in mind you are getting not just a car, but also the chance to raise your credit score. We work with many of these dealerships, and when you submit your application, we work hard to match you with one who wants to fund your loan.
Affordable Interest Rates for Fairbanks Residents
In order to minimize the overall cost of your car, do something to lower your rate of interest. This could result in big savings over the life of your loan.
Check out this table depicting the impact of various rates of interest.
|Good Credit||Average Credit||Poor Credit|
|Size of Loan||$17,379||$17,379||$17,379|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
|Payment Per Month||$316||$344||$378|
Improve your credit score, and you will enjoy lower interest rates. At annualcreditreport.com, you can check your report once per year, free of charge, and challenge any errors you find, possibly improving your credit score. Also, paying down any outstanding debt can bring down your debt-to-income (DTI) ratio, thereby reducing your rate of interest. Lenders charge less to finance cars for 3-4 years than for 5 years or longer, and shorter loans have less risk of negative equity. To finish, a larger down payment will lower your loan-to-value ratio, also known as your LTV–yet another rate-reducing factor.
Buy Here Pay Here (BHPH) Car Dealers in Fairbanks, AK
Car lots in Fairbanks that advertise buy here pay here financing differ from conventional dealerships in several crucial ways. They…
- Furnish auto loans in house.
- Rarely require credit checks.
- Ask for weekly or biweekly payments, often at the lot.
Many people with really terrible credit think that a buy here pay here car lot is the only real establishment that will accept their credit. But keep in mind, Alaska poor credit car loans from banks and credit unions typically feature lower rates.
Re-establishing Your Credit in Fairbanks
If your credit isn’t ideal, you’re probably considering ways to boost it. In all actuality, a car loan is among the most powerful ways to re-establish your credit. When you make payments time after time, you prove to creditors that you’re a good investment.
On the flip side, you can make things even worse if you don’t keep up with your payments. It is hard to say the amount your score is going to go up, but some credit gurus have noted a 5-10% increase per month.