Life doesn’t slow down for anybody. You need a car sooner rather than later, but you know it’s not going to be that easy. Your credit history isn’t exactly stellar, and you’re well aware of it. When you have bad credit, you can make due for a while – sometimes for a long time – without needing to get a loan. But when you need a car like you do now, your only option is bad credit auto financing.
What Difference Does Bad Credit Auto Financing Make?
Comparing bad credit auto financing with normal loan terms for good credit can be disheartening. They’re quite different, and it’s all about risk.
When you apply for a loan, the lender assesses your risk based on your credit history and income.
If you have good credit, the lender feels confident that you’ll repay the loan within the terms provided. Usually, you get competitive interest rates and a term that makes payments comfortable.
If you need bad credit auto financing though, it looks much riskier to the lender. You’re assessed a higher interest rate and a shorter term. Essentially, the lender is looking to be paid back more of the loan value in a shorter time frame to minimize the risk.
The difference can be huge. Bad credit auto financing can increase your monthly payment by hundreds of dollars. However, when you need a car now, you don’t have much of a choice, do you?
Can I Qualify For a Loan?
At CarUp in Springfield, many of our customers are in the same situation. Our financing experts have built relationships with lenders that specialize in no-credit and bad-credit loans. If you have a down payment and income to support a car payment, there’s an excellent chance you’ll get financed.
What’s even better is that our financing team works hard to get you the best rate possible, even if your credit isn’t the best. Even a couple percentage points make a big difference, and we want you to have the highest opportunity to successfully repay your loan.
Wondering if you qualify for bad credit auto financing at CarUp? Call us, stop in, or fill out a credit pre-approval online so we can start helping you soon!