How Can I Get an Affordable Monthly Payment on a Car with Bad Credit?

Here at Basil Resale Sheridan, one of the most common questions we get from Amherst area shoppers is, “how can I get an affordable monthly payment on a car with bad credit?” Although the process can be tricky, our Basil Resale Sheridan Finance team has gone to great lengths to help you figure out how to secure an auto loan with less-than-ideal credit. Learn more about whether interest rates go up with bad credit and if interest rates are currently inflated with the experts below! Then, get a great deal on your new vehicle by utilizing our new vehicle specials!

How Do You Get a Car Loan with Bad Credit?

Not sure how to secure an auto loan with poor credit scores? Although interest rates are currently inflated, our Basil Resale Sheridan Finance specialists have made it as simple as possible for you to secure a bad credit car loan. All you have to do is get pre-approved for financing online, and then our savvy consultants will handle the rest!

Do Interest Rates Go Up with Bad Credit?

Yes, unfortunately, interest rates do go up with bad credit. Clarence area lenders use higher interest rates to protect themselves from people who have a lower likelihood of paying. Having no or low credit means that you’ll have to pay more in interest when you need to borrow. However, you have a few options available to you if you’re trying to lower the interest rate on your car loan:

1. Check your credit score: Prior to applying for financing, or even re-applying for a car loan, it’s always good to know your credit score beforehand. This will help you know whether you need to work on updating your credit score before getting a loan.
2. Increase your score: While it may be harder than it sounds, increasing your credit score will help you secure a lower interest rate when applying for a car loan.
3. Check for Refinance Loans: It’s best to know the average range of interest rates for your credit score, so you can find a loan that’s suitable for your financial circumstances. If possible, compare interest rates and payment terms between multiple lenders and even ask your current lender for a lower rate. Even if you’re denied, tell them that you’ve received lower interest rates elsewhere and see if they’ll match or beat that offer!
4. Get a cosigner: Another route to getting a lower interest rate on auto loans is enlisting a cosigner. This can help especially if you have a low credit score.
5. Consider in-house financing: When you opt for in-house financing, you’re not making payments to a bank lender. Instead, you’re borrowing a loan from the dealership, and you’ll be paying the dealer back. If you make consistent, on-time payments, this will help boost your credit score.

Secure a Car Loan with Bad Credit at Basil Resale Sheridan

Interested in financing a car with suboptimal credit in the Buffalo area? Trading in your current vehicle as a down payment on your upcoming purchase is a great tactic! However, you’re more than welcome to reach out to us at Basil Resale Sheridan for further assistance!