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Obtaining a car loan with bad or no credit

Your credit rating plays a important role when trying to obtain a car loan. Credit scores range from the lowest at 300 to the best of 850. Having a credit score over 680 will most likely approve you for the best auto loan rate available. If your credit score is under 700 don't panic. Most car dealerships can approve you for a car loan from almost 50 different financial institutions. Remember, auto loans are secured so it is much easier to be approved for financing than a credit card. If your credit score (FICO) is under 680 you can still qualify for a auto loan at a higher rate. The lower your score the higher your interest rate will be and the required down payment may be higher. When you are looking to purchase a new vehicle with bad credit, try to find a dealership that handles bad credit financing. We have found that no matter how bad credit score is, even with bankruptcy and a credit score as low as 500, you can still be approved for a car loan with certain car loan financial institutions. Although, you may have receive a interest rate at 20%.

We highly recommend staying away from buy here pay here lots. These dealerships tend to charge a excessive amount of interest and like to mark the price of the car up to nearly double. This is how they are able to approve anybody for a car with no credit check. When searching for a car with bad credit, remember it is easier to obtain car financing with a new car than a used car.


Getting financed with bad credit for a new car loan

Even though your credit may be bad, there are still banks and financial institutions that will approve you for a new car loan. Depending on your credit rating, the auto lending company will determine your total down payment and the interest rate you will pay.