Applying for an Auto Loan with Bad Credit
September 3rd, 2011
When an individual who has bad credit history is considering financing a new vehicle, he should be ready for a couple of important things. Since Auto Loans are long term loans, a lender carefully considers a borrower’s credit history. The first thing you need to anticipate is the fact that the lender will require a down payment for the car. This usually ranges between 20 and 50 percent of the total amount depending on how bad the credit score is. Second, expect a slightly higher interest rate than what is normally offered to people with good credit standing. This is why you should always shop around for other lenders that might offer a better term.
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