Types of Loan Interest Car Loans for Bad Credit

by | Apr 8, 2014 | Financial Services

You need a car to work, but you need money to buy a car. You would like take out a loan for a car, but you have bad credit or zero credit. What do you do? It is possible to get Low Interest Car Loans for Bad Credit at Automotive Financing Solutions LLC. Here are your options and what you should expect if you apply for one of these loans.

No Co-Signer Loans

One way people with bad credit get loans is to have a co-signer. That is someone who signs on the dotted line with you. If you stop making payments, they loan company goes after the co-signer for payment. You might not want to bring someone into the deal and put them at risk. It is possible to get a car loan without a co-signer. The best way to do this is to prove that you can make payments by showing the loan company your income and efforts to fix your bad credit. Another option is to put a large down payment on the car as a gesture of good faith.

No Money Down Loans

Maybe you can’t afford a huge down payment. How do you manage to get a loan? If you have bad credit, car loan companies don’t want to give you a car that is worth less than the loan. If they take the car from you because you defaulted on the loan, they have a loss. If you are willing pay Kelley Blue Book value or more for the car, you might get the loan even with bad credit. That way, if you default, the loan company still makes a profit with the car.

Zero Credit Loans

Maybe you’re just getting started in life and you need a car to find work or get to your new job. When you have zero credit, it can be difficult to get a car loan. You have no proof that you can pay your bills. Keep in mind that credit cards count toward your credit score. If might not have much of a credit score, but you have something. Choose a used car to save money and provide a good down payment. This shows that you have saved money and looks good to loan companies.

Contact Automotive Financing Solutions LLC for more information on Low Interest Loans for Bad Credit.

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