An applicant’s credit rating is a key factor for car loan creditors who finance car loans in Fairfield. The annual percentage rates for bad credit auto loans in Fairfield, Ohio, are way higher than those for first-rate credit, and rates of approval are not nearly as high as they used to be. Not to worry. Considering how many finance companies in Ohio are unable to help people who’ve got bad credit, it could take quite a long time to find a loan lender willing to accept you for financing. Fortunately, we are happy to make your car shopping experience successful. Here’s how the process works:
- You, the borrower, submit an application online.
- Our innovative placement engine connects you with an auto lender.
- Your finance company reaches out to finalize the details of your automotive financing package.
Fairfield Car Dealers That Take Bad Credit
When you’ve got adverse credit, generally banks aren’t going to lend to you. Luckily, there are dealerships that do business with credit-challenged individuals. Any time you have adverse credit, there are certain things to be expected more expensive rates of interest, more substantial down payments, and more stringent lending requirements. But keep in mind, don’t forget that you are getting not only a car, but also the chance to boost your credit score. There are many such dealerships in our network, and you can get matched with one by applying online.
How to Minimize Your Fairfield Interest Rate
Obtaining the least expensive interest rate you can is very important.
In point of fact, a more affordable interest rate could save you hundreds, if not thousands of dollars, as shown in the table that follows.
|Good Credit||Decent Credit||Bad Credit|
|Interest Rate||3.50% APR||7.00% APR||11.00% APR|
The good news is, there are steps you can take to bring down your rate of interest.
- Credit Score: Maximize your credit score by forcing credit bureaus to rectify any mistakes on your credit report.
- Loan-to-Value Ratio: More money down typically leads to lower annual percentage rates, because a smaller proportion of the vehicle is being financed.
- Debt-to-Income Ratio: Lending companies prefer that you have little pre-existing debt, so paying down as much as you can makes sense.
- Length of Loan: A finance period of 60 months or less could result in a lower rate of interest.
- Vehicle Condition: It doesn’t cost as much to finance a newer model–at least with regards to rate of interest.
Fairfield Buy Here Pay Here Dealers
The BHPH industry would love you to believe that you can’t get financed anywhere else, yet this generally isn’t the case. These dealerships provide car loans on site, while a lot of dealers farm this out to third-party lenders, and they will typically finance everyone. Downsides include:
- Outrageous Rates of Interest
- Exorbitant Down Payments
- Overpriced Autos
- GPS Monitoring Units
For this reason, these dealerships have a lousy track record. We can connect you with a reputable dealer who can get you financed, even if you’ve experienced bankruptcy.
Recommendations for Financing
Take 10% of your monthly income. You should spend this amount, at maximum, on your monthly car payment. At the same time, you don’t want to finance for over 60 months. This will get you a car or truck which costs about 50% of your yearly income. If you have an income of $32,542 annually, the average in Fairfield, you would buy a $16,272 car. A car is a depreciating asset, so you want to invest the minimum amount you can and still get a car that is reliable enough to keep you on the road.