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Auto Loans in Allen (TX)

Were you turned down for a car loan in Allen, Texas on account of subprime credit? Given how many lenders in Texas have been neglecting people with bad credit, it could take a long time to find a lender who is prepared to fund your loan. Fortunately, we have a sophisticated system for credit acceptance created especially for applicants with bad credit. When you apply, we can put you in touch with a financing specialist in Allen.

Bad Credit Car Dealers in Allen, Texas

If you’ve got low credit scores, dealer financing is generally your best and only option, since most all the banks won’t be able to work with you. There are dealers, however, that can get you the loan you need at a fair rate. In contrast to buy here pay here dealers, these larger dealers offer:

  • Less expensive APR rates.
  • Lower down payments.
  • New and used vehicles.

You may not meet the criteria to finance the more expensive cars in the showroom. With bad credit, the most you can borrow is six to eight times the amount you make per month. For residents of Allen earning $7,262 a month, this is $43,572 to $58,096. Then again, just 8% of your income ($581, in this example) should be allotted to your car payment, which will no doubt make for a less significant loan.

Apply online to have a finance specialist confirm how much car you can afford.

Allen Auto Loan Rates: Keeping Them Affordable

If you’ve financed a car, then you know interest rate is equally as vital as price, if you want to save some money in the long run.

Have a look at what you will pay in interest at a rate of 3.50% as compared with 7.00% or 11.00% APR.

Good Credit Average Credit Subprime Credit
Loan $65,358 $65,358 $65,358
APR 3.50% APR 7.00% APR 11.00% APR
Payment Per Month $1,189 $1,294 $1,421
Total Interest $5,981 $12,292 $19,904

Needless to say, it’s extremely important to obtain the best rate you can. Let’s take a look at a number of proven strategies for doing so.

  • Credit Profile: Obtain your credit report here, then dispute any inaccuracy you find.
  • Loan-to-Value Ratio: Offer a down payment of 20% on your purchase. This will minimize lender risk, resulting in a lower rate of interest.
  • Debt to Income Ratio: Creditors always prefer credit seekers with little other debt, so paying off as much as you can is advisable.
  • 36-60 Month Loan: Longer loans come with reduced monthly payments, but shorter ones have lower rates.
  • Vehicle Type: Used vehicles are more expensive to finance than new vehicles, though they cost a lot less in the long run.

Allen Buy Here Pay Here Car Lots

People young and old head for buy here pay here dealerships, also known as in house financing dealers, thinking they will only be able to get financed without a credit check. Rarely is this the case. It’s true, they do not check your credit, meaning bad credit probably won’t be an impediment, but odds are you’ll overpay for your vehicle and its loan.

Most often, preowned vehicles are the only models for sale, and these aren’t zero down cars. In most cases, the down payment is the same as what the dealer paid for the vehicle, and you could end up paying thousands in the end through exorbitant rates. For this reason, these retailers don’t have a very good track record. We want to connect you with dealer finance professional who will work with you, even if you’ve been through bankruptcy.

Can This Re-establish Your Credit?

Not only will a car loan provide you the money you need to purchase your car, it has the ability to help you get your credit back in line. When you make your payments on a monthly basis, you prove to lenders that you’ll be a good investment.

Your score doesn’t go up the day you pay the balance of your loan. Rather, its climbs little-by-little as you continue making payments on schedule. In order to be sure you never miss any payments, consider intelligent options such as automated payments.

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