Bad Credit Auto Rates
From young professionals to elder hobbyists, everyone needs a car for a streamlined lifestyle in today’s fast paced world. While united in their need for automobiles, most people simply don’t have a big chunk of spare cash to buy a car. Even fewer people have the credit score that might make them confident about getting a car loan. In today’s economy, the inflated expenses and precarious income prospects punch a hole in the enthusiasm of the typical car customer.
Credit Score and Auto Loan Rates
A good credit score will get you the car, quickly and affordably. While this rule of thumb governs the average care buyer’s mind set, it’s just that – a rule of thumb. Bad credit is perceived to ‘blacklist’ a potential car buyer and many even bother to go to a dealership because they have already rejected themselves. While good credit is a definitive advantage for getting good rates on an auto loan, car loan rates for bad credit don’t have to be a death sentence for your car buying desire.
Bad Credit is not the worst
With good credit auto loan rates ranging from 4.24% – 14.49% fixed APR for standard and extended terms, common wisdom will tie good credit scores (700+) to lower interest rates. However, people can also go for bad credit auto rates. The recent economical situation affected the financial health a lot of people. The tumbling economy tarnished a lot of credit scores and the lenders are aware of this. They are recognizing that people looking for bad credit car loan rates may very well have the financial health now to earn a good rate. The average US credit score is 678 which ranks as ‘fair’. The last two years of financial history have the most effect on a credit score. Taking the recent recession into consideration, many lenders will focus on the current financial disposition of car buyers when ascertaining bad credit auto rates.
What to Expect
Considering national averages, excellent scores such as those between 690 and 850 can land you car loan rates from 5.73% to 7.37%. Middling scores in the range of 620 and 689 are good for interest rates between 9.40% and 12.76%. Car loan rates for bad credit scores, 589 to 619 will fetch you bad credit auto rates in the range of 17.68% to 18.5%.
While a good credit score will work wonders for your car shopping, a bad credit score doesn’t have to prevent you from getting behind the wheel of the car you desire. Knowing its possible despite bad credit is the first step toward your new car. With the right advice and guidance along the way, you can soon get affordable car loan rates for bad credit.