Your credit scores are an important factor for auto loan companies who finance auto loans in San Luis Obispo. The loan rates for bad credit auto dealerships in San Luis Obispo are significantly more expensive than those for borrowers with excellent credit, and rates of approval aren’t as high as they used to be. Not to worry. We think that auto loans shouldn’t be such a struggle for people in San Luis Obispo, California, regardless of whether they have subprime credit scores.
In just one minute, we can put you in touch with a loan provider in San Luis Obispo who can get you behind the wheel of a new vehicle, despite your credit.
Bad Credit Car Dealerships in San Luis Obispo, California
Bad credit doesn’t have to stand in the way of your new car. We can pair you with dealerships in San Luis Obispo that are ready to give you a second chance at financing. In comparison with a buy here pay here car lot, such dealerships typically offer cheaper rates and more favorable terms. The types of vehicles for which you’re qualified will be based on what you earn each month, as well as how high your credit score is. So as to steer clear of missed payments or repossession, look for an inexpensive, fuel-efficient vehicle with payments that amount to just 10% of your income–no more. If you get paid $950 per month, this comes to a payment of $95.
A dedicated lending professional will determine how much you’re eligible to borrow, and at what APR. If you’d like to chat with one, be sure you submit your application.
Lower Auto Finance Rates for San Luis Obispo Borrowers
Have you ever bought a car on credit before? In that case, most likely you know APR rate is just as relevant as price, if you’re hoping to get the best deal you possibly can. For example, a 60 month car loan of $8,550 would cost you $782 in interest at 3.50% APR, $1,608 at 7.00% APR, and $2,604 at 11.00% APR.
Some 8 out of every 10 California consumers now have items that are outdated or fraudulent on their credit report. You would be recommended that you check yours. Getting any such problems corrected could lead to a cheaper interest rate. Also, paying down any existing debt can reduce your debt-to-income (DTI) ratio, thereby reducing your rate of interest. Opting for a shorter-term loan will also keep your rate low, and it will also help you avoid negative equity. Lastly, how much of a down payment are you planning to offer? A greater down payment will translate into a lower interest rate.
Tote The Note Car Lots in San Luis Obispo, CA
Maybe you’ve thought of getting your car loan at a buy here pay here car dealer in San Luis Obispo? These types of San Luis Obispo in house financing dealers provide car loans on site, typically without checking the applicant’s credit. Considering they don’t depend on a traditional bank or investment company for approval, they can support an extensive array of consumers.
Often consumers with really low credit assume that an in house financing car lot is the only establishment that will be willing to finance them, even though the interest rates are much higher than you’d be given by a traditional lender. Additionally, they seldom report payments to the credit reporting agencies, which means the consumer’s FICO score isn’t likely to go up as a result of the loan.
Improving Your Credit in San Luis Obispo
If your credit isn’t the best, you are probably considering ways to restore it. In all actuality, a car loan is one of the more effective ways to re-establish your credit. Getting a car financed:
- Offers you the chance to strengthen your payment history (35% of your score).
- Enhances your credit mix, or the spectrum of credit in your profile (10% of your score).
Conversely, you can make things even worse if you go delinquent on your payments. In order to make sure you don’t miss any payments, consider solutions such as automated deductions.