If you’re in your 20s and already have bad credit, the time to start fixing it is now. Good credit is within reach, but getting it will take some time and effort.
Beantown may also be known as “America’s Walking City,” but a car may be necessary if you commute into the city from one of Boston’s many suburbs. However, if you have bad credit, buying the vehicle you need may seem like a difficult task.
When you have bad credit, it can be tough to get approved for a car loan. Most lenders aren’t willing to approve applicants with poor credit, which can leave you looking for alternative options. Two of the most common ways is through either a bad credit auto loan or a buy here pay here dealership.
If you have bad credit and need to finance a vehicle purchase, you may be worried about facing an exceptionally high interest rate. However, depending on your credit history and score, this may not be the case.
The Federal Reserve (or the Fed) just raised its main interest rate for the first time in 2016 last week. While the interest rate hike was modest, consumers still need to be aware of the effect it may have in the near future.
Financing a vehicle when you have bad credit can be very difficult if you do not have enough money for a down payment. Lenders typically require subprime car buyers to pay $1,000 or 10 percent of a car’s selling price, whichever one is less.
It is possible to get approved for an auto loan with bad credit and no down payment. But it is normally not advised.