Low credit ratings are a hassle. Nobody understands subprime credit like us.
Inside of 60 seconds, we can set you up with a loan agent in Salinas who will work hard to find you the funding you need.
Salinas Dealerships That Approve Bad Credit
With the prevalence of bad credit in California and across the country, a greater number of dealerships now have finance departments specializing in subprime financing. Just like any subprime loan, there are certain things to be expected more expensive rates of interest, more substantial down payments, and more stringent repayment requirements. With that being said, keep in mind that you are getting not just a car, but also the opportunity to build up your credit. We work with many such dealerships, and when you apply online, we can connect you with one who wants to put you in the driver’s seat.
Lowering Your Salinas Interest Rates
Getting a more affordable rate of interest on your loan may lead to a lot of money saved.
Take a look at this table to see the impact of various interest rates.
|Good Credit||Mid-Range Credit||Poor Credit|
|Size of Loan||$27,639||$27,639||$27,639|
|Interest Rate||3.50% APR||7.00% APR||11.00% APR|
The good news is, there are several simple ways you can lessen your rate of interest.
- Credit Score: Make certain that there aren’t any mistakes holding back your credit score. If you come across one, be sure to dispute it.
- Loan-to-Value: Save up enough for 20% down on your vehicle, which will cut down on the risk for the lender, resulting in a cheaper rate.
- Debt-to-Income (DTI): Do you have a good deal of additional debt? Reducing your other debts will bring down your debt-to-income ratio thereby boosting your credit score, which will mean a cheaper interest rate.
- Shorter-Term Financing: The faster you pay back your loan, the lower your interest rate will be.
- Vehicle Age: It doesn’t cost as much to finance a newer model–with regards to interest rate, at least.
Salinas Buy Here Pay Here Dealers
People in the buy here pay here industry would like you to believe that you have no option but them. However, this is seldom the case. These car lots grant funding in-house, in contrast to conventional dealers which outsource this, and they regard your job as your credit. You’ll find that used autos are the only ones you can buy, and you may be required to have a GPS unit mounted in your vehicle. Repossession rates are quite high, much like the interest rates. If that weren’t a problem, these dealerships don’t work with the credit reporting agencies, so you could make all of your payments as agreed without a lift in your credit score.
Rebuilding Your Credit in Salinas
It’s the truth: a vehicle loan can in fact improve your credit. When you make payments on a monthly basis, you demonstrate to creditors that they are likely to have the funds they lend you paid back as agreed. You really can’t fall behind on your payments, because this will surely have a dramatic impact: a weakened credit score. Of course, the benefits to an increased score are considerable:
- Lower rates of interest.
- Decreased insurance premiums.
- Increased loan amounts.
- Improved chances of credit approval.