As veteran finance specialists, we understand the issues associated with buying a car, especially if your credit isn’t very good. It’s important to work with a lender who won’t just approve your credit, but enable you to re-establish it. We have spent years developing an unrivaled network of dealers and finance companies who can finance borrowers with credit histories of all kinds, not just those with excellent credit. An auto finance agent will walk you through the purchasing process, step-by-step. Feel free to submit your secure application.
Lakewood Car Dealers That Work with Bad Credit
Car dealerships that approve financing themselves are known as in-house financing, tote the note, or buy here pay here car dealers. It’s better to work with a dealer that approves consumers for bad credit car loans in Lakewood, Ohio through an accredited lender. More often than not, these types of dealers offer:
- More affordable interest rates.
- Realistic down payments.
- Both new and used vehicles.
Your income and credit dictates how much car you can afford. Usually, if you have poor credit, you can get approved for 6 to 8 times the amount you make per month. For the Lakewood resident earning $3,378 each month, this is $20,268 to $27,024. However, only 8% of your income ($270, in this case) should be allocated to your car payment, which will no doubt lead to a less significant loan.
Submit your application to speak with a lending expert about how much you can borrow.
Can You Finance a Car with No Down Payment?
Is your idea to buy your car without a down payment? A down payment reduces your loan-to-value ratio, which is the size of the loan versus the value of the vehicle. The result is:
- Lower annual percentage rate.
- Less paid in total interest.
- Fewer problems with negative equity.
If your credit isn’t the best, it could be hard to get an auto loan with zero down, but remember that your trade equity could help you make a down payment, often without parting with any cash.
Buy Here Pay Here Auto Loans in Lakewood, OH
Buy here pay here dealers primarily deal with people who have major credit problems like bankruptcy and repossession. Sure, they don’t carry out credit checks, so your credit problems probably won’t be a barrier, but you really pay for this over time.
Regrettably, you can look forward to exorbitant interest rates, massive down payments, and cars and trucks that cost too much given their mileage and condition. That isn’t all: these car lots seldom report to the credit bureaus, which means you could make all of your payments on time without helping your credit score.
Credit Considerations for Lakewood Residents
Not only will a car loan give you the money needed to purchase your car, it has the ability to help you get your credit back on track. If you send in your payment on schedule every month, you’ll be developing a favorable payment history, which is greater than 33% of your credit score.
Payments made late, by contrast, can decrease your FICO score, and severely! Many lenders let you establish an automated payment each month, so the payment is taken straight from your payment account.