Lets face it, buying a new car can leave a big dent in your savings account. Auto loans have helped roughly 35% of Americans get a safe and efficient newer car at affordable monthly rates.1 But with 16% of Americans now having bad credit scores it can be hard to get approved for an auto loan. Using a simple online search you can find amazing auto loan deals made for those with bad credit situations.
16% of Americans Have Bad Credit
A 2019 Experian review has revealed a worrisome stat for many with roughly 16% of Americans having a credit score below 580.2 Bad credit scores can place unnecessary stress in all aspects of life and when it comes to owning a vehicle this is no difference. To make matters worse to actually better our credit scores we need to prove to lenders that we can pay back which means taking out loans.
Benefits Of Buying A Car With An Auto Loan
- Save On Repairs – Buying an old used car may seem cheaper in the beginning but many neglect the cost of repairs. Many times engines or other major parts of a vehicle will need replacing as they age which can cost what you originally paid for the used car. Often getting a newer vehicle will mean it comes with warranty which can also offset any repair costs.
- Boost Credit History – The same situation that can lead people to bad credit is what gets them out of it. Using auto loans can be a simple and effective way to boost your credit score fast and safely.
- Better Budgeting – After reaching an agreement with your auto loan you can manage your budget knowing exactly what it will cost a month against other monthly expenses in your life.
The Best Auto Loans For Bad Credit In 2022
Capital One3
Capital One is a national bank which offers many different loan categories to consumers. Auto loans is something they’re very respected for and can cater towards people with lower credit scores. With APRs starting at 2.99% and loan terms available for 36 and 72 month cycles its a very comfortable loan for many consumers. The Capital One auto loan is best for consumers wanting to purchase a vehicle worth over $4000.
Auto Credit Express4
Auto Credit Express is a North American company servicing both the USA and Canada. They’re helping to rebuild consumers credit offering a wide variety of loan terms for those with bad credit and even include previous bankruptcies. With APRs available at 3.99% all the way to 29.99% there are solutions to many. The only minimum requirement is that you must have at least $1500/month in income to qualify.
MyAutoLoan.com5
MyAutoLoan.com is a company founded in 2003 offering auto loans to Americans. They take on new loans with consumers with bad credit and the application process takes about 2 minutes to complete. Estimated APRs are at 1.99%-12.99% and they focus on auto loans in the $8000 to $100,000 amount. The minimum credit score required is 575 and they allow co-signers to help with approvals.
iLending6
iLending Auto Loans is a part of the iLendingDirect company which offers many different loans to Americans. They have APR’s starting at 1.99% and work with customers who have credit scores of 560 and above. The available loan types typically begin at $7500 and have terms ranging from 24 and 84 months.
Men Carry Slightly More Debt Than Women
According to an Experian study its found that the average credit score of a man is 705 and the average score of a women is 704. Men tend to borrow more money and on average have $125 more credit card debt than women. To help boost your credit score for future loans and other financing types like home loans you can try these tips. According to Fool 20% of Americans have credit scores of 800 and above which is considered the premium financing group.
Raise Your Credit Score With These Tips
- Setup Automatic Bill Payments – Never miss a payment again and save all little marks against your credit score with automatic bill payments.
- Pay Down Balances – If you carry multiple loans its a good idea to service the high interest loans as fast as possible to save money and raise your credit score.
- Take A Credit-Builder Loan – If you’re focusing on raising your credit score then taking out a credit-builder loan from a credit union may help you.
How To Find Your Perfect Bad Credit Auto Loan
If you’re in the market of a new or used vehicle and want to take an auto loan but have bad credit do not stress! There are so many options available to you but making the right decision can help improve your credit score and also get the car you’re searching for. To find the best loans available in your state for bad credit try a simple online search.
Reference:
- https://www.newyorkfed.org/medialibrary/interactives/householdcredit/data/pdf/HHDC_2019Q4.pdf
- https://www.badcredit.org/how-to/how-many-americans-have-bad-credit/
- https://www.capitalone.com/auto-financing/refinance/
- https://www.autocreditexpress.com/
- https://www.myautoloan.com/
- https://www.lendingtree.com/auto/auto
