Have you been denied by a bank or credit union for a car loan? You just need to find a dealer or lender who approves these sorts of loans. We can get you approved for financing through our extensive network of Virginia lenders and dealers.
Just apply online, and your information enters our application placement system, where we match you with a lender based on your location, your income, and your credit profile. The whole process is quick and pain-free, and there are no commitments or hidden fees.
Interest Rates for People with Low Credit Scores
Steeper rates of interest are a fact of life when you have a credit score of 620 or lower. Individual interest rates vary widely based on quite a few factors, including your lender, credit rating, vehicle type, loan term, and other factors. Here are a few estimations based on our industry experience.
|FICO||Used Vehicle APR||New Vehicle APR|
Clearly, these rates are pretty high. That’s the reason you should offer a down payment and opt for relative short-term (2-4 year) financing. This will minimize how much you pay in total interest.
- Valid Virginia drivers license.
- Monthly income of $1500.
- Employed for at least 12 months.
- All bankruptcies discharged.
- No repossessions in last year.
What Kind of Vehicle Can I Purchase?
Vehicle restrictions vary from dealer to dealer. However, we can offer a few requirements based on our industry experience.
- Vehicles may be new or used.
- Maximum of 75,000 miles on vehicle.
- Vehicle no more than 6 years old.
- Minimum loan amount of $7500.
Many loan companies want you to purchase your car or truck from a dealer in their network.
Down Payment Requirements
As much as we’d like to tell you otherwise, down payments are often a requirement when financing a car with below-average credit.
That’s because they lessen the risk to the loan company. If the vehicle has to be repossessed, they have a better chance of recouping their losses. For you, the consumer, there are advantages as well. You will pay less in overall interest, simply because the loan will be smaller, and you won’t be as vulnerable to negative equity.
There are lenders who offer no down payment car loans for people with credit problems. Unfortunately, it’s common practice for a dealer to simply roll the down payment into the total loan amount. In that way, you might not have to offer any money upfront, but you’ll spend the money in the end – with interest!
Rebuilding Your Credit
A car loan is actually one of the most powerful ways to improve your FICO score, but don’t forget: you have to make your monthly payments when they’re due. Creditors will consider you a more responsible consumer, which means lower annual percentage rates and better terms in the future. Of course, this is a double-edged sword. If you miss payments or are late on them, you could easily exacerbate your already-weakened credit score.
Here’s a solid guideline: your car payment shouldn’t be much more than 10% of your monthly income. People in Virginia, on average, earn $2,753 a month, which means a payment of $275 monthly would be appropriate. Spending too much could contribute to late payments, delinquency, even repossession.