Car financing for people with bad credit is quite easy to get, if you know where to look and what to do.
The main thing you need to consider, when looking for car financing with poor credit history, is where you want to get a loan. If you are seeking to take out a loan with traditional lenders like a bank or credit union, it's possible, but there are some pretty big stipulations.
If you want to finance a car with bad credit through bank, you are going to have to put a down payment down on the car. Banks will not give you car finance with bad credit if you don't put such a down payment. This is because if you put a down payment on the car, the bank will be essentially giving you a secured loan, and secured loans are much safer investments. You are far more unlikely to declare bankruptcy if you have some sort of collateral down that you can lose (in this case your down payment).
Also, if you want new car financing with bad credit history, you may be out of luck. Unless you have a very good income and can prove to the bank unequivocally that you can make the payments, you will probably only be able to get used car financing with bad credit.
Also, if you are seeking car refinancing with bad credit, you are going to find it very difficult to do through a conventional lender.
Now, if you can't get auto financing for people with bad credit, you can seek out a bad credit lender to get the financing you need. These are special lenders who give out auto loans to people with bad credit history. However, this is a cost when getting auto financing with poor credit - you are going to pay MUCH higher interest. The interest on a sub prim car loan (bad credit loan) will always be much higher than conventional loans. You need to be able to repay this type of loan off.
However, the advantage of this type car loans for people with poor credit is that it lets people with very bad credit actually own a car - something important in this day and age. Getting a car refinancing with poor credit is actually as simple as finding one of these bad credit auto loan lenders on the internet and filling out an application.
Car financing for people with bad credit can be done -- but you will pay more money. However, you should do some comparison shopping. Interest rates between bad credit auto lenders can greatly vary - by looking around and visiting as many bad credit lender websites as possible, you will get the absolute cheapest car financing for people with bad credit.
Check out these related Info Barrel articles about bad credit loans:
- Personal Loans After Bankruptcy
- How to Buy a Car with Bad Credit History
- Loans for People with Very Bad Credit
- Personal Loans with Very Bad Credit Scores
- Bad Credit Motorcycle Loans
- Auto loans for People with Poor Credit History