Friday, May 25, 2012

3 ways to get a lower rate auto loan with bad credit

Bad Credit is everywhere these days. If you have it, you are not alone. Just because you have flawed credit, or even repos, bankruptcies or foreclosures, it doesn't mean you won't qualify for an auto loan. Many great banks have sub-prime programs for good people who made a few mistakes but are in need of an auto loan!

Here are a few things you can do to make it easier to purchase a car with bad credit:

1. Save as much as you can for your down payment. This will help to reduce the amount that you have to borrow. Larger down payments also reduce the risk to the lender and may give you a better rate, which means a lower payment and/or more car for your money. 

2. Co-signers also reduce the risk to the lender. Co-signers agree to take up the payment, in the event that the borrower defaults on the loan. Most people believe a co-signer needs to have perfect credit. This is not true. Having a co-signer may also save you some money and get you more car.  

3. Boost your FICO by paying off outstanding debts to lower your debt to income ratio. Pay down those maxed out credit cards and the bank will see you as a more responsible borrower with fewer bills. This may also help significantly reduce that rate!

With bad credit, you most likely are not going to get the rate you want, but taking the time to do things right may increase your chances of getting a lower one, and a car loan is a great way to rebuild credit. If you want to talk more about your options give Speedy Car Loans of Las Vegas a call at 702 478-2605 and we will be happy to help you!

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