Most importantly, this company will help you find a deal despite your low credit score. In fact, several of the companies partnering with myAutoloan, like 5kFunds, Web2Carz, and CashUSA, provide car loans for people with bad credit.
Specific credit requirements depend on the partner lender you decide to go with, but there are several general requirements for myAutoloan itself.
First of all, your FICO score should be 575, or higher. You also need to be at least 18 years of age and be a US resident (excluding Alaska and Hawaii). The minimum annual income is $21,000, and the minimum loan amount is $8000. If you fulfill these, plenty of lenders will give you a decent interest rate on car loans with bad credit.
Financing terms with myAutoloan depend on the lender and the loan you take. Once you fill out myAutoloan’s form, lenders will contact you with some offers to choose between. You can expect an interest rate ranging between 2.05 and %.
With a Trustpilot score of 4.4, we can safely conclude myAutoloan’s customers were satisfied with its process. Most users were happy with the offer they got, as well as the sheer number of offers for car loans with bad credit they got.
Reasons to Apply:
- Partnerships with lenders and dealerships
- All-rounder service
- Useful financing-estimation tools
Fortunly’s Guide to Car Loans
Getting a car loan when your credit score isn’t at its best might seem like an impossible task. Interest rates skyrocket, and your choice of cars is often limited.
You’ve probably tried your local dealership, but if your credit score is less than perfect, left empty-handed. Getting a cosigner for a better deal can easily turn into a relationship-breaker, and interest rates often seem better suited to paying off a space-shuttle than a bad-credit car loan.
Lucky for you, the sole purpose of this guide is to find ways for you to purchase your dream car regardless of your credit score.
What Constitutes a Bad Credit Score for Car Loans?
As we said before, there is no such thing as an unacceptable credit score for many car dealerships. The optimal credit score for purchasing a used car is around 600, so anything below may seem like a disaster, but rest assured – it’s not.
Your credit score is not the only thing to consider when applying for bad-credit car loans. The next most important thing lenders will look into is your debt-to-income ratio.
If you have a regular income from either a job or other payday loans North Dakota sources, it will go a long way towards your approval. In fact, people who’ve never owned a credit card in their life have been making regular car payments for years.
Prepping all of your documents before the meeting with dealerships, banks, or go-betweens, and having an explanation for any potential imperfections can be a crucial factor for gaining bad-credit auto financing approval.
To sum things up, bad credit score’ is a term open to interpretation by almost every car dealership. After all, the car serves as the collateral, so they won’t be losing much if you don’t make your payments in time. Dealers can repossess and resell it to cover their losses. It would be best if you found time to improve your credit score before purchasing, though.
How Does Bad Credit Affect Car Loans?
Some people think it is impossible to get car loans with bad credit, but this is very far from the truth. Still, even if it doesn’t bar you from getting one or several, bad credit will impact the offers you will get.