Bad credit can keep you from buying a new car, but you can get approved. Given how many auto lending companies have been unwilling to work with people with bad credit, it could take a long time to find a finance company willing to accept you for financing. Luckily, we are happy to lend a hand.
Listed here are the secrets to our program
- Advanced Data-Matching Program
- Extensive Network of Lenders
- Extensive Shopper Education
Lompoc Car Lots for Bad Credit
If you have some credit problems, dealer financing is generally the only option you have, because the majority of banks will be hesitant to approve you. Then again, there are dealers who have finance specialists in-house, waiting to get you financed. As with all subprime loans, you can expect increased interest rates, bigger down payments, and stricter lending requirements. But keep in mind, keep in mind you’re getting a car, yes, but also the opportunity to improve your credit score. We have a great number of dealers in our network, and you can get matched with one by submitting your application.
Lompoc Car Loan Rates: How to Reduce Them
If you’ve financed a car, then you know APR rate is as important as price is, if you’re hoping to get the best deal possible.
In order to see just how important interest rate is, take a peek at the numbers that follows.
|Good Credit||Mid-Range Credit||Poor Credit|
|Size of Loan||$20,349||$20,349||$20,349|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
Thankfully, your rate of interest can be minimized in several ways.
- Credit History: Challenge any error you discover on your credit report which could raise the rate of interest on your loan.
- Loan-to-Value (LTV): A substantial down payment will reduce your loan-to-value ratio–the amount of your loan as compared with the price of your vehicle–which should limit your interest rate.
- Debt-to-Income Ratio: Lenders always prefer applicants with little in the way of other debt, so paying off as much as you can is smart.
- Shorter-Term Financing: Financing for 60 months or less could result in a lower rate of interest.
- Type of Vehicle: Used vehicles are more expensive to finance, simply because they are more likely to have maintenance issues, etc.
Buy Here Pay Here Car Lots in Lompoc, CA
Have you wondered about getting financed at a buy here pay here car lot in Lompoc? These types of Lompoc in house financing car dealerships don’t depend on banks or third-party lenders for approval, so they’re able to assist an extensive array of borrowers. For folks with really bad credit, Lompoc buy here pay here dealers are sometimes the only option. But bear in mind, the interest rates are a lot higher than a bank loan. They also don’t often report payments to the credit reporting agencies, which means the consumer’s credit score won’t go up as a result of the loan.
Will This Help You Re-establish Your Credit?
If your credit isn’t the greatest, you are probably thinking about ways to improve it. In reality, a car loan is among the more effective ways to boost your credit. An auto loan:
- Offers you the ability to spruce up your payment history (35% of your score).
- Adds to the array of credit types under your belt (10% of your score).
Try your best not to get behind on your payments, because this will surely have a dramatic consequence: a decreased FICO score. You shouldn’t ignore the benefits of a better credit score. It will make your life better and more affordable, and all you have to do is pay your bills month after month.