Late payments and unpaid bills can damage your credit score. We appreciate the problems that Iowa car shoppers struggle with when they’ve got bad credit. Each and every day, we help consumers in Iowa get a car financed despite challenges like:
- A Low Credit Score
- No Credit
- Unsettled Bills
It’s our mission. Want to get started? Visit here to submit your application.
Bad Credit Car Dealerships in IA
You might want to try to avoid buy here pay here car dealers, which are known for predatory tactics of one sort or other. There are larger dealerships that work with people with lower credit scores, while providing a better financing experience. With any bad credit loan, you can expect increased rates of interest, heftier down payments, and more stringent lending conditions. But keep in mind, the rates and terms are much more attractive than you would be offered at a used lot that does in-house financing with no credit checks. We work with many such dealerships, and when you apply online, we can match you with one who wants to put you in the driver’s seat.
Lowering Your Interest Rates
Having a reduced interest rate will pay off in a big way. For example, a car loan of $26,804,paid off in 5 years at 3.50% APR, would end up costing you $2,453 in interest. It would cost you $5,041 at 7.00% APR, and $8,163 at 11.00%. From 3.50% to 11.00% APR, your monthly payment would shoot up from $488 to $583.
Obviously, your rate of interest is critically important, and you’ll find that making sure it’s as low as possible isn’t that complicated.
- Credit Profile: Strengthen your credit score by requesting the correction of even the smallest inaccuracy in your credit file.
- Down Payment: Supply a down payment of at least 10-20% on your vehicle, which will minimize lending risk, bringing about a less expensive rate.
- Debt-to-Income Ratio: Have you got a lot of credit card debt? Reducing what you owe will bring down your DTI and increase your credit score, both of which will give you a less expensive rate of interest.
- Length of Loan: Long-term loans have lower monthly payments, but shorter ones come with lower interest rates.
- Vehicle Mileage: Lenders charge steeper rates for pre-owned vehicles than new vehicles, though they cost considerably less in the long run.
Buy Here Pay Here Dealerships in IA
Maybe you’ve thought of getting your car loan at a buy here pay here dealer in Iowa? These Iowa in house financing dealers offer auto loans on-site, typically without a credit check. Considering that they don’t depend on a traditional bank or credit union for approval, they’re able to assist a larger range of consumers. For people that have horrible credit, Iowa buy here pay here car lots tend to be the only way to go, even though Iowa bad credit auto loans from banks and credit unions typically have lower rates.
Revitalizing Your Credit in Iowa
There are three leading credit reporting agencies: Experian, Transunion, and Equifax. In all likelihood, your lender will report your payments to these bureaus, giving you a chance to restore your credit. The trick is making your payments on time, every time.
Your score won’t spike the second you pay back your loan. Rather, its increases gradually as you keep on paying your bills each month. It is hard to gauge the amount your score is going to climb, but some industry professionals have reported a 5-10% increase each month.