If your credit isn’t very good, getting approved for financing is often the biggest barrier to shopping for a new car, especially since the downturn. We allow you to find a lender who can finance folks who have a history of credit problems. We’ve spent years building a wide-ranging network of lenders and dealers that can grant car loans to people with a variety of credit histories. Don’t delay: apply online, and you could be in the driver’s seat of a new car by end of day.
South Bend Car Dealerships That Work with Bad Credit
Most banks don’t finance individuals with credit problems. Thankfully, there are dealers and finance companies that accept credit-challenged borrowers. More often than not, these dealers offer:
- Interest rates that are affordable.
- Down payments that are realistic.
- Vehicles that have less mileage.
The types of vehicles you’re eligible for will be decided by your income and credit score. So as to avoid loan delinquency or repossession, go with a vehicle that won’t tax your budget, having a payment equal to 10% of your income–at maximum. If you make $1,905 a month, this is a payment of $191. Apply online to see your options.
How to Reduce Your APR Rates
Financing your vehicle at the least expensive interest rate possible is essential.
Have a look at this chart to see the impact of different rates.
|Good Credit||Average Credit||Poor Credit|
|Interest Rate||3.50% APR||7.00% APR||11.00% APR|
First and foremost, uncovering and disputing any errors on your credit report can give your credit a boost, and we all know that increased scores translate into better rates. After that, be sure you pay down any debts you can, as lenders prefer applicants with low debt-to-income ratios, charging them more attractive rates. Don’t resort to a long-term loan to purchase a more expensive vehicle. Finance for 60 months or less, and you’ll be rewarded with a decreased interest rate. Loan size, as a percentage of vehicle value, is another significant factor. A bigger down payment makes for a healthier ratio, which should help in minimizing your interest rate.
In House Financing Car Lots in South Bend, IN
Referred to as buy here pay here, tote the note, or your job is your credit car dealerships, these businesses generally have a few main features:
- They approve car loans without 3rd party funding.
- They rarely check your credit.
- They require weekly or biweekly payments, often in person.
If you’ve got really bad credit, South Bend buy here pay here car dealers tend to be the only real option, even though the cost of your vehicle will be inflated as a result of higher annual percentage rates, and it’s less likely that your credit rating will improve since these car lots rarely work with the credit agencies.
Managing the Cost for Your New Car
Dealer lots in South Bend are packed with vehicles that you are capable of purchasing, but which wouldn’t be advisable. At most, 8% of your monthly income ought to be put toward your new payment. If you live in South Bend and make $1,905 a month, this would be $152.
|Good Credit||Okay Credit||Poor Credit|
|Term||5 Years||5 Years||5 Years|
|Price with Interest||$11,238||$11,068||$10,896|