Question
How high are interest rates on a car loan on bad credit?
I just want to get a general idea from people who have or who have known someone else who have gotten a car loan on bad credit and how high the interest rate is. Let's say the applicant has a well-paying job but only for the past few months (say, 90k/yr). Looking at a new car 20-30k, on a 5 year payments plan. Down payment is 10%-20%. What interest rates would you expect for mid-500's credit score? For 500? For high 400's? Even lower? (is that possible?) So car loan companies look at a lot more than just the credit score, right? As in, a 550 credit score (due to no credit history) is much better than a 550 score that's due to collections and late payments.
3 years ago - 4 answers
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Chosen by Asker
Thats a decent down payment. It really depends not just on yuor credit score, but reasons why your credit is bad. Car financers will look closely at things like bankruptcy or collections If those things are on your credit you will be paying heavily. Upwards of 15-20%. Now if your score is low just due to things like too much debt or lack of credit history, then you will be ok assuiming that your income is good.. maybe 8-12%.
by iceman
3 years ago
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Other Answers
I have heard people say they have a 22% intrest rate on cars
by v_bird26- 3 years ago
You should find all info on the website that gives out loans for bad credit or even bankruptcy. It is really not a problem getting a loan, but about the interest rates, you should check out here: www ... Wish You good luck! Nancy
by Nancy G- 3 years ago
Bad credit is one of the worst problems to have... however there exists a solution. I will hereby talk from my personal experience. I did debt consolidation a couple of years ago, however If I had to do it again I would pay to some minor details, if someone wants to get out of debt today it is pretty easy with a debt consolidation plan, however it may get a bit tricky at times, I suggest you get as much information as possible online on this first, a good place to start in my humble opinion is astraight to the point ebook with question and answer I found : umgarticles ... if it helps kindly remember me in your voting!.. cheers!
by gabriel jones- 3 years ago