Bad credit is a problem for roughly 1 in 4 Maryland consumers, and that percentage is increasing. Given how many banks and finance companies in Waldorf are still rejecting people that have bad credit, it could take longer than you’d like to find a lender all on your own. Fortunately, we can offer you a proprietary system for auto loan acceptance.
Day after day, we help men and women finance a car even with hurdles such as:
- Very Bad Credit
- Limited Credit
- Credit Card Debt
It’s our specialty. Ready to get cracking? Click here to apply online.
Waldorf Dealerships That Work with Bad Credit
Have you given thought to where you could buy your new car or truck? If you’ve got bad credit, you’ll probably have to get your car from a dealership, as opposed to an individual seller, as lenders hardly ever fund these types of loans for people who have sub-standard credit. Thank heavens there are dealers that work with bad credit. In comparison with a BHPH dealer, such dealerships typically offer cheaper rates and more desirable terms. Your income and credit determines how much car you can get financed. With adverse credit, the most you can borrow is 6 to 8 times the amount you earn per month. For residents of Waldorf earning $3,961 a month, this is $23,766 to $31,688. That said, only 8% of your income ($317, in this case) should be spent on your car payment, which may very well restrict what you can spend. Submit an application to find out your options.
Decreased Rates of Interest for Waldorf Borrowers
Financing at the most affordable APR rate possible is very important. As an example, a car loan of $35,649, repaid in 60 months, would cost you the following:
- 3.50% APR: $3,262 in interest.
- 7.00% APR: $6,705 in interest.
- 11.00% APR: $10,857 in interest.
For starters, finding and resolving any errors on your credit report can boost your credit score, and we all know that healthier credit equates to cheaper rates. In addition, lenders take into account both your income and existing debts. If you pay off any existing debts, you will decrease your debt-to-income ratio (DTI), which will result a lower rate of interest. Going with a shorter-term loan will also keep your rate more manageable, and it will also help prevent negative equity. As a final point, how much of a down payment have you got? A more substantial down payment will lead to a lower APR rate.
Buy Here Pay Here Auto Loans in Waldorf, MD
Buy here pay here car dealers typically work with people who’ve got significant credit problems such as:
- Chapters 7 or 13
- Involuntary Repossession
- Debt Settlement
Such car lots provide financing on site, while traditional dealers farm this out to separate lenders, and they finance just about everyone. Disadvantages include:
- Ridiculous Interest rates
- Huge Down Payments
- Overpriced Vehicles
- Aggressive Repossession Practices
Is improving your credit important to you? Then you should contact a vehicle finance specialist through us, seeing as BHPH dealers won’t help you improve your credit.
Credit-Building for Waldorf Borrowers
The vast majority of legitimate auto lending companies have relationships with the big three credit bureaus–Experian, Equifax, and Transunion–which gives you the chance to restore your credit. Getting a car financed:
- Provides you with the chance to improve your payment history (35% of your score).
- Improves your credit mix, or the spectrum of credit you’ve utilized (10% of your score).
Payments missed, on the other hand, can damage your credit score, and severely! Of course, the benefits of a better score are enormous:
- Decreased insurance and loan rates.
- Chance to refinance existing car or home loans.
- Faster loan approval.