Your credit ratings are a key factor for auto loan companies financing car loans in Somerville and across the United States. The loan rates for bad credit auto financing in Somerville, Massachusetts, are significantly more expensive than those for borrowers with excellent credit, and approval rates aren’t as high as they used to be. Favorable credit may give you more options, but we help you, the applicant, get a bad credit auto financing package you need. Here’s how it works:
- You, the consumer, submit an application online.
- Our state-of-the-art matching software connects you with an auto lender.
- Your lending company reaches out about completing your bad credit vehicle finance package.
Bad Credit Car Dealers in Somerville, MA
Car dealers that have departments dedicated to sub-prime auto loans are often referred to as bad credit car dealers. In contrast to buy here pay here dealers, these dealerships offer:
- Interest rates that aren’t exorbitant.
- Down payments based on the vehicle’s worth.
- Vehicles that have less mileage.
You may not meet the criteria to finance all the cars on the lot. With credit problems, the maximum amount you can borrow is 6 to 8 times the amount you earn per month. For residents of Somerville earning $3,878 per month, this is $23,268 to $31,024. That being said, it’s smarter to borrow less than you can, reducing your monthly payment to just 10% of your income–$388, in our example. Submit an application to see how much you can borrow.
How to Reduce Your Interest
Getting a lesser interest rate will result in big savings.
The truth is, a cheaper rate of interest could save you hundreds of dollars over the life of your loan, as you can see in the table that follows.
|Good Credit||Fair Credit||Bad Credit|
|APR||3.50% APR||7.00% APR||11.00% APR|
A more favorable credit score will result in lower interest rates on not just car and truck loans, but credit cards and home loans as well. At Annual Credit Report, you can check your report once each year, at zero cost, and dispute any mistakes you find, potentially improving your credit score. Also, be sure to pay down any debts you can, as lenders prefer consumers without a lot of existing debt. Going with a shorter-term loan will also keep your rate more affordable, and it will also help you combat negative equity. Down payments are also crucial. The less you borrow in relation to the price of your vehicle, the lower your interest rate will be.
Your Job is Your Credit Dealerships in Somerville, MA
Known as buy here pay here, tote the note, or your job is your credit car dealerships, these establishments typically have a few key features. They…
- Offer auto loans on location.
- Rarely check your credit.
- Want you to make your installment payments every seven days, often at the lot.
If you’ve got terrible credit, Somerville buy here pay here car dealers tend to be the only real option, even though the cost of your car or truck will be inflated as a result of ridiculous rates of interest. As if that weren’t enough, it is less likely that your credit score will get better as you repay the loan. That’s because these car lots have no relationship with the credit agencies.
Credit-Building for Somerville Residents
When you pay off the loan as agreed, financing a car can actually help you rebuild your credit. The key is that you make your payments on time, each and every time. Late payments, by contrast, can hurt your FICO score, and in a hurry! Don’t underrate the merits of an improved credit score. It can save you tens of thousands of dollars in the years to come, and all you have to do is pay your lender in full on a monthly basis.