A bad credit score impacts around 1 in 4 California car-shoppers. Good credit may give you cheaper rates, but we can help you get the auto financing package in Palmdale you need. Here’s how we help our clients to overcome their bad credit and obtain car loan they need:
- Step 1: Our web application can be completed in under a minute.
- Step 2: We leverages scores of lenders and dealers to place your application.
- Step 3: Getting approved ordinarily takes less than 2 days.
Palmdale Car Lots for Bad Credit
If you suffer from below-average credit, dealer financing is probably the only option you have, because the vast majority of banks in the area won’t be willing to lend to you. There are dealers, however, that want to get you the loan you need. For the most part, these dealers offer:
- Interest rates that aren’t exorbitant.
- Down payments that are fair.
- New vehicles, as well as pre-owned ones.
Your credit and income dictates the cars you’re eligible to finance. With less-than-perfect credit, you can get approved for six to eight times your monthly income. For the Palmdale resident who makes $2,697 per month, this is $16,182 to $21,576. At the same time, just 8% of your income ($216, in this example) should be allocated to your car payment, which may restrict the amount you can spend.
An auto finance consultant can help you determine how much you’re qualified to borrow, and at what interest rate. Just go here to apply online.
Lowering Your Interest
APR rate is of utmost importance if you want to reduce the total amount you have to spend on your vehicle.
Have a look at what you’ll pay in interest at an interest rate of 11.00% versus 3.50%.
|Good Credit||Average Credit||Poor Credit|
|Rate||3.50% APR||7.00% APR||11.00% APR|
Thank heavens there are steps you can take to help reduce your interest rate.
- Credit Profile: Start to improve your credit score by notifying the appropriate credit bureau of any and all errors in your credit profile.
- Loan-to-Value: A larger amount of money down often results in less total interest having to be paid, as the loan is that much smaller.
- Debt-to-Income Ratio: Have a ton of existing debt? Paying some of it down will lower your DTI and boost your credit score, both of which will translate to a reduced APR.
- Loan Length: Keeping your finance term to 60 months or less could result in a lower rate of interest.
- Vehicle Age: It costs less to finance a new or nearly new car–at least with regards to rate of interest.
Buy Here Pay Here Auto Loans in Palmdale, California
The BHPH industry would like you to think that nobody but them will approve you, yet this is very rarely the way it is. They might not conduct credit checks, so bad credit probably won’t be an obstacle, but you will wind up paying a lot for this. Regrettably, you can expect exorbitant loan rates, huge down payments, and vehicles that are too expensive for the kind of shape they’re in. There’s a good reason that these retailers don’t have the best reputation. We want to connect you with a reputable dealer who can get you in the car or truck you need, even if your credit is horrible.
Will Financing Raise Your FICO Score?
Besides providing you with the funds you’ll need, an auto loan can actually help you get your credit back on track. By making payments time after time, you demonstrate to lenders that you’re someone they can depend on.
On the other hand, you can further damage your credit if you go into default on your payments. It’s hard to know how much your score is going to increase, but boosts of 5-10% have been noted.