Your FICO score is massively important when shopping for a car, and acceptance rates have dropped since the credit crunch. We allow you to find a lender who really does want your business. We’ve spent years building a vast network of dealers and finance companies that whose primary goal is getting you into the car you want. Simply submit your credit application, and you will be a few short steps away from a new car.
Bad Credit Car Dealers in Frederick, MD
Don’t allow credit to keep you from buying your next car. We work with dealers all across Maryland who are willing to compete for your business. Whenever you have adverse credit, there are certain things to be expected:
- Much higher interest rates.
- Larger down payment requirements.
- More stringent repayment terms.
On the plus side, keep in mind that you’re getting not just a car, but also the opportunity to raise your credit score. There are many of these dealers in our network, and they want to get you behind the wheel of the car you deserve. Just go here to submit your application.
Frederick APR Rates: How to Minimize Them
Many people are focused on paying the lowest price possible for their new car, but for those who have a low credit score, interest rate is equally as vital. Think about this: a 60 month car loan of $29,052 would cost you $2,658 at 3.50% APR, $5,464 at 7.00% APR, and $8,848 at 11.00% APR.
The good news is, there are some fast ways to limit your rate of interest.
- Credit Profile: Request your credit report and challenge any mistakes you see.
- Down Payment: A strong down payment will lower your loan-to-value ratio–the size of your loan as compared to the price of the vehicle–thereby decreasing the interest rate you can expect.
- Debt-to-Income Ratio: Creditors have a strong preference for consumers who have little in the way of existing debt, so paying off as much as possible is smart.
- Shorter-Term Financing: Lengthier loans offer lower payments, but shorter ones come with lower rates of interest.
- New Vehicle: Used vehicles are more expensive to finance than new vehicles, though they don’t cost so much to begin with.
Buy Here Pay Here Car Dealers in Frederick, MD
Car dealers in Frederick that offer in house financing have a few things in common. They…
- Offer car loans directly.
- Rarely check your credit.
- Want you to make payments every seven days, often at the lot.
If you have terrible credit, Frederick in house financing dealers are often the only way to go. But the truth is, there are a number of negatives:
- Elevated Financing Fees
- In-Person Payments
- Lack of Ability to Improve Credit Score
Financing Guidelines for Frederick Car-Shoppers
When considering the monthly payment on your car, it shouldn’t exceed 10% of what you earn each month. In order to avoid equity issues and inflated finance fees, consider a loan of no more than 60 months. If you follow these guidelines, you will wind up buying a car that costs around 50% of what you make per year. For Frederick residents with incomes of $38,739 per year, this is a car that costs $19,368. Cars don’t retain their value like most homes do, so it’s best to fork out the least amount possible to obtain a car that won’t cost you time and money in repairs.