Get Good Car Loan Rates with Bad Credit
by DeMeko Scott
When you're battling with a bad credit score your chance to get a good car loan rate is usually tossed out the window. However, there are a few useful tactics that you can use to your advantage and have your interest rates lowered so that you might be able to afford the payments for the cheap cars on sale near you.
Increase Your Down Payment
There is no better motivator for a bank or vehicle dealership to reduce the rates on your loan than more money. By showing that you are willing to invest an increased amount of your own funds in a vehicle it can make the lender feel more comfortable offering you cheap car loan rates. That is largely because you allow them to put out more of their own money and they know you're less likely to default on something you're deeply invested in.
Go After a Cosigner
When your less than perfect credit affects your auto financing rates you may want to try and locate a cosigner to assist you. This will allow for that person's good credit history to make it possible for you to get better APR rates. Of course this places your cosigner's credit on the line along with your own, but it can save you a great deal of money and even improve both parties credit.
These options can be very beneficial to you if you're truly struggling with receiving a car loan because of your poor credit history. You may also want to explore different lending companies like dealerships, banks, and even online lenders to get the best rates for yourself.
