Has a dealership in Germantown turned you down because of poor credit? Don’t worry. We believe that way too many people are being declined for car financing, regardless of whether they have bad credit. Day after day, we help people in Germantown finance a car regardless of hurdles such as:
- Poor Credit
- Limited Credit
- Delinquent Bills
That’s our first priority. Want to get moving? Click here to submit your application.
Germantown Car Lots That Work with Bad Credit
Some dealerships that provide financing in-house, also known as buy here pay here car dealers, don’t do credit checks. However, odds are they won’t be helping you increase your credit score. In all likelihood, you’ll have a better experience with car dealer that can secure your approval through an authorized lender. Yes, they’ll check your credit, but they also report to the credit agencies – uncommon among BHPH car lots that offer financing on location. Whenever you have bad credit, there are certain things to be expected increased rates of interest and larger down payments, as well as stricter lending conditions. But keep in mind, the rates and terms are much more attractive than you would be offered at one of Germantown’s buy here pay here dealers. We have a great number of dealers in our network, and you can get paired with one by applying online.
The Best Auto Loan Rates for Germantown Borrowers
Most shoppers concentrate on the price of their new car, but rate of interest is as crucial.
In order to see how vitally important your rate of interest is, glance over the table that follows.
|Good Credit||Average Credit||Bad Credit|
|Size of Loan||$33,741||$33,741||$33,741|
|Interest Rate||3.50% APR||7.00% APR||11.00% APR|
Fortunately, there are a few quick ways to decrease the amount you end up owing in interest.
- Credit Score: Be sure that there aren’t any misreported or fraudulent items being reported on your credit. If you find one, you should definitely file a dispute for it.
- Loan-to-Value Ratio: A strong down payment will bring down your loan-to-value ratio–the size of your loan as compared with the price of the vehicle you’re financing–which should decrease the interest rate at which you’ll be approved.
- Debt to Income Ratio (DTI): Have a good deal of credit card debt? Reducing your other debts will lessen your DTI thereby helping increase credit score, which will mean a more affordable rate of interest.
- Loan Length: Long-term loans offer smaller monthly payments, but shorter ones have cheaper rates of interest.
- Type of Vehicle: It is significantly less expensive to finance a vehicle that’s new–so long as you don’t pay a higher purchase price.
Buy Here Pay Here Dealerships in Germantown, Maryland
Have you considered heading to a buy here pay here dealer to get approved? Usually, there are better alternatives. For the most part, dealer financing isn’t direct to the consumer, in that dealers work with a network of lenders to provide the loans, but BHPH dealers engage in direct lending. They are the actual source of the loans.
Sadly, you should be prepared for exorbitant interest rates, massive down payments, and cars and trucks that are too expensive for their mileage. Worse, these dealerships rarely report to the credit reporting agencies, and that means you could make every single payment punctually with no lift in your FICO score.
Credit Recovery for Germantown Borrowers
Want to restore your credit? Then keep your distance from in house financing dealers. Our dealers and lenders can help you restore your credit. The process of improvement isn’t immediate, but after a year of punctional payments, you should find your credit score begin increasing. You should never miss a payment, because this will have a drastic effect: a weakened credit score. You don’t want to ignore the merits of a much healthier FICO score. It makes life so much quite a bit easier and more affordable, and you need to simply pay your lender by the due date month after month.