Here at Motive Auto Finance, we understand the obstacles that come with getting a car loan, particularly if you have bad credit. It’s crucial that you find a lender or dealer that finances cars at competitive rates of interest, even for people who have credit problems. Through the years, we’ve built an unrivaled network of dealers and finance companies that will consider your application, even if you have a credit score that could be a lot better. Go ahead and submit your credit application, and we will match you with a lending professional from a dealer or lender local to you.
Huntsville Car Dealers for Bad Credit
Most banks turn down applications from individuals who have credit problems. However, there are dealers and specialty lenders that will work with the sub-prime market. Since you’re a higher-risk borrower, certain things are to be expected:
- Rates of interest that are steeper.
- Down payments that are larger.
- Loans that are modestly-sized.
But keep in mind, keep in mind you’re getting not only a car, but also the chance to rebuild your credit. Here at Motive Auto Finance, we work with many of these dealerships, and when you submit your application, we match you with one who wants to approve your credit.
Cheaper Auto Loan Rates for Huntsville Borrowers
Rate of interest is criticalin determining your monthly payment, along with the amount you will end up spending on your vehicle.
Consider what you will pay in interest at an interest rate of 11.00% in comparison to 3.50%.
|Good Credit||Decent Credit||Poor Credit|
|APR||3.50% APR||7.00% APR||11.00% APR|
Up to 80% of consumers in Texas are estimated to have items that are outdated or fraudulent on their credit report. You would be best if you check yours. Getting rid of these result in a higher credit score and a more affordable interest rate. Next, make sure you pay down as much debt as you can, as lenders prefer credit-seekers without a lot of existing debt, awarding them cheaper rates. Securing a shorter-term loan will also keep your rate low, and it will also help prevent negative equity. Lastly, how much can you put down on your vehicle? Down payments bring down the loan-to-value ratio on this loan. The larger the down payment you can furnish, the better.
Huntsville Buy Here Pay Here Financing
For those who have experienced bankruptcy or foreclosure, buy here pay here financing could possibly appear to be a good idea. These types of dealers provide auto loans directly, unlike conventional dealerships which utilize one of their affiliated lenders, and they are more concerned with your income than your credit. Customarily, higher-mileage autos are the only thing available, and these aren’t no money down car deals. Quite often, the down payment is less, but not much, than you would pay for the vehicle from a private seller, and you could find yourself paying thousands in total interest through excessive rates. And if that weren’t enough of an issue, these dealerships seldom work with the credit bureaus, which means you could make all of your payments when they’re due without boosting your credit score.
Credit-Building for Huntsville Residents
If you have damaged credit, you’ll probably be looking for ways to repair it. Believe it or not, a car loan is among the easiest ways to re-establish your credit. If you pay your lender on time each month, you will wind up establishing a strong history of debt payment, which accounts for greater than one-third of your credit score. On the reverse side, you could possibly wreck your credit by missing payments, or making them past the due date. It’s hard to gauge precisely how much your score is going to rise, but some experts have reported a 5-10% increase monthly.