Have you been thinking of getting pre-approved for financing? It’s a good idea, as the benefits are significant:
- Less time spent on the car lot.
- Chance of a less expensive rate of interest.
- Improved bargaining leverage.
Rather than waiting until you are in the dealer’s F&I office, we allow you to apply for a car loan ahead of time. You will enjoy the convenience of having a committed finance professional who can address your questions and line up your loan.
Honolulu Car Dealers for Bad Credit
Certain bad credit car dealerships check out your income as opposed to your credit. Sometimes they promote themselves as your job is your credit car dealerships, and they don’t do credit checks. That sounds all well and good, but odds are they won’t be helping you restore your credit. It’s far better to work with a dealership that can finance your bad credit through an established lender. As with all subprime loans, certain things are to be expected increased interest rates and larger down payments, as well as more exacting lending conditions. But keep in mind, the experience is far superior to that of a buy here pay here dealer, and your vehicle will likely cost you less in both upfront costs and interest. We work with many of these dealerships, and they want to get you the car you deserve. Go here to apply online.
Honolulu Car Loan Rates: Reducing Them
Obtaining the least expensive interest rate you possibly can–it’s key.
Consider how much more you’ll pay in interest at an interest rate of 11.00% as opposed to 3.50%.
|Good Credit||Decent Credit||Sub-prime Credit|
|Rate of Interest||3.50% APR||7.00% APR||11.00% APR|
The good news is, there are some fast ways to minimize your rate of interest.
- Credit History: Start to improve your credit score by requesting the correction of even the smallest mistake being reported on your credit.
- Down Payment: More money down often leads to cheaper interest rates, because a smaller percentage of the vehicle is being financed.
- Debt to Income Ratio (DTI): Banks and lenders strongly prefer borrowers with little in the way of other debt, so paying off as much as you can is just common sense.
- Shorter-Term Financing: Lengthier loans have reduced payments, but shorter ones offer better rates of interest.
- Type of Vehicle: Lenders charge steeper rates for used cars and trucks, simply because they’re more susceptible to maintenance issues.
Your Job is Your Credit Dealerships in Honolulu, HI
Generally known as buy here pay here, tote the note, or your job is your credit car dealerships, these dealerships ordinarily have a few key features:
- They approve auto loans directly.
- They don’t require credit checks.
- They demand weekly or biweekly payments, often at the lot.
Often folks with really bad credit assume that a buy here pay here car lot is the only real place that will be willing to finance them. Unfortunately, the cost of your vehicle will be higher on account of higher interest charges, and it’s unlikely that your FICO score will show improvements as you pay back the loan. This is because these dealers rarely work with the credit agencies.
Credit Improvement for Honolulu Consumers
Nearly all auto lending companies report consumer debt payments to the three main credit agencies–Transunion, Experian, and Equifax–giving you the ability to re-establish your credit. Your history of debt payments is an enormous part of the Fair Isaac scoring formula. And as you know, financing a car means 3-7 years of payments. Needless to say, this is a double-edge sword, in that you can exacerbate your credit problems if you go into default on your payments. Many lenders and dealers allow you to set up an automatic monthly payment, so the funds are deducted directly from your bank account.