Financing a car became a lot tougher following the recession, but it isn’t impossible. We allow you to find a bank or dealer that will not only accept your credit, but help you rebuild it. For years, we’ve been establishing an unparalleled network of lenders and dealers that would like to approve you for financing, no matter your credit. Go ahead and submit your online application, and you could be driving home your new car by the end of the day.
San Leandro Car Dealers That Finance Bad Credit
If you are searching for a car dealer that funds loans for individuals with poor credit, you’re in the right place. As with all subprime loans, you can expect:
- Elevated interest rates.
- Significant down payment requirements.
- Stricter lending conditions.
With that being said, they will get you approved for financing through banks and finance companies that submit information to the credit bureaus, thereby allowing you to increase your credit score. Here at Motive Auto Finance, we work with many of these dealerships, and you can get matched with one by submitting your application.
Reducing Your APR Rates
Getting a more affordable rate of interest on your loan will pay off in a big way. As an example, a $38,205 car loan, financed for 5 years, would cost the following in interest:
- 3.50% APR: $3,496 in interest.
- 7.00% APR: $7,185 in interest.
- 11.00% APR: $11,635 in interest.
An incredible number of consumers in California now have misreported debts on their credit report. You’d be best to check yours for any problems. Getting your report all squared away could lead to a much better credit score and a minimized rate of interest. Do you have a good deal of credit card debt? Paying some of it off could decrease your debt-to-income ratio your rate of interest along with it. Opting for a shorter-term loan will also keep your rate more affordable, and it will also minimize negative equity. Last but not least, remember that a larger down payment will lessen your loan-to-value ratio, also referred to as your LTV–an additional way of reducing your rate.
Buy Here Pay Here Dealers in San Leandro, CA
Commonly called buy here pay here, tote the note, or your job is your credit car dealerships, these dealerships ordinarily have a few chief features. They…
- Offer car loans on-site.
- Don’t check your credit.
- Want weekly or twice-monthly payments, often at the lot.
If you’ve got horrible credit, San Leandro buy here pay here car lots are often the only real way to go, even though the rates of interest are much higher than a loan from the bank. Aside from that, they don’t often report payments to the credit reporting agencies. This means your FICO rating won’t get better as a result of the loan.
Credit-Building for San Leandro Borrowers
If you’re hoping to begin repairing the damage to your credit, don’t buy from buy here pay here dealers. The lenders and dealers in our network can help you get your credit to a better place. If you pay your lender on time each month, you’ll quickly find yourself developing a good payment history, which makes up 35% of your FICO score. However, you could potentially damage your credit by allowing your payments to be late. In order to ensure that you don’t miss any of your payments, consider a scheduled calendar reminder or automated deductions from your bank account.