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Auto Loans in Michigan (MI)

Has your credit been denied because of issues like delinquent debts or collections? We enable you to find a bank or dealer that will not only approve you for financing, but do so at an affordable rate. Over the years, we’ve established an extensive network of lenders and dealers that are willing to accept your finance request, whether you have good credit or bad.

Your vehicle finance professional will serve as your guide, helping you set up your finance package before you ever step foot on the dealer lot. Feel free to get started.

Michigan Car Lots for Bad Credit

Most banks don’t cater to individuals with poor credit. Thankfully, there are dealers that accept consumers in this demographic. Compared with a buy here pay here car lot, such dealers are able to offer:

  • Less owed upfront, in terms of money down.
  • Less expensive rates of interest.
  • Opportunity to re-establish your credit.

Your income and credit determines how much car you can afford. With less-than-perfect credit, you can get approved for 6 to 8 times your monthly income. For the Michigan resident making $3,613 a month, this is $21,679 to $28,905. However, only 10% of your income ($361, in this example) should be allotted to your car payment, which will very likely result in a smaller loan.. Submit your application to see how much car you can afford.

Lowering Your Rate of Interest

Interest rate is of supreme importance if you want to limit the amount you will end up paying for your vehicle.

Consider what you’ll end up paying in interest with a rate of 3.50% as opposed to 7.00% or 11.00% APR.

Good Credit Fair Credit Poor Credit
Loan $32,518 $32,518 $32,518
Rate of Interest 3.50% APR 7.00% APR 11.00% APR
Monthly Installment $592 $644 $707
Total Interest $2,976 $6,116 $9,903

If you want to keep your interest rate as low as possible, be sure you check your credit report for any inaccuracies. If you find one, send a letter to the credit bureau that’s reporting the error. This is a quick and easy way to improve your credit. Next, make sure to pay down any debts possible, as lenders prefer credit-seekers with low debt-to-income ratios, and reward them with more affordable rates. Don’t resort to a 72-84 month loan simply to keep your payments low. The shorter your loan is, the lower your rate will be. Lastly, how much of a down payment can you come up with? Down payments reduce your loan-to-value ratio, and consequently the interest rate you’re charged.

In House Financing Dealerships in MI

Have you thought about getting approved through a buy here pay here car dealer in Michigan? These types of Michigan bad credit car dealerships don’t rely on banks or outside lenders to approve their customers, so they can work with a broad variety of clientele.

Countless consumers with really horrible credit assume that a buy here pay here car lot is the only real establishment that will finance them, even though there are several drawbacks:

  • High Rates Of Interest
  • High Down Payments
  • High Risk of Repossession

Will This Boost Your FICO Score?

If your credit isn’t the best, it’s likely you’ll be interested in ways to repair it. Believe it or not, a car loan is one of the more effective ways to rebuild your credit. Applying for and paying down an installment loan, on schedule and as agreed, exhibits that you are a reliable borrower, meaning lower rates of interest and more advantageous terms down the line. However, you could possibly wreck your credit by making payments late or simply missing them completely. Many banks and lenders help you set up an automatic monthly payment, so the funds are taken right from your bank.