If you've had credit problems in the past and need to buy a car, you may need to apply for a "bad credit used car loan." With a bad credit used car loan, you can buy a car, but you will usually have to pay it back in less time and at a higher interest rate.
Today, many traditional car lenders give you more time to pay off the car. Some even give you up to seven years. Most used car loans for people with bad credit must be paid back within 48 months. Since you are buying a used car and your loan amount will be less, the lender thinks that you will pay off the loan in less time.
Find out how much used cars cost.
Before you make an offer on a used car, you should find out how much they usually go for. By doing this, you will be able to tell if a dealer raised the price to make too much money. You will want to buy the car from a dealership that has a good name.
There are a lot of businesses that do most of their business with people whose credit scores aren't the best. Some of these dealers might try to scam customers. Just because you've had credit problems in the past doesn't mean you should pay high interest rates or other fees.
Find a lender online.
Online lenders for auto loans make it easy and quick to get a loan. By applying online, you will be able to see the rates of a number of lenders. Online auto loan applications can be filled out quickly, and approval is almost always given the same day.
When you apply for a loan to buy a used car with bad credit, it's important to remember that banks have rules about how old a car you can buy. Most banks won't lend money for cars that are more than four or five years old. When you buy a used car, you should also try to make a big down payment. This will cut down on both the interest rate and the length of time you have to pay back the loan.
