Bad Credit Auto Loans in Chesapeake (VA)

Searching for the best car loan in Chesapeake? You’ve come to the right place. Our application placement system takes the headache out of getting approved. Just submit your application, and we’ll begin working to get you the auto loan you need. We have relationships with lenders across the state, and we allow these companies to compete for your business in real-time. That means your application is placed with the lender or dealer who wants your business the most, not to mention one whose criteria you meet in terms of income and location.

Financing a Car in Chesapeake with Poor Credit

auto loan ChesapeakeOur services are uniquely-suited to consumers with low credit scores. A large number of major lenders and dealers now have whole departments dedicated to “special finance.” These are often called Chesapeake bad credit car dealerships. Naturally, we work with a great many of them. Yes, bad credit scores mean higher rates of interest, meaning it’s crucial for you to finance an economical vehicle with low monthly payments.

Keep in mind, making regular payments on an installment loan like this can improve your credit ratings. So let us find you a dealer that funds loans for people with credit problems – online! There are no obligations for using our service, and no hassles. Simply submit your secure application.

How Much Can I Finance?

The chart that follows shows how much you can borrow, based on a monthly income of $2,695, the average in Chesapeake. These amounts are merely approximations. You may be entitled to a different amount. Speak with your vehicle finance specialist for more information.

Credit Income Factor Amount Borrowed
Great Credit 10 $26,950
Fair Credit 9 $24,255
Subprime Credit 8 $21,560
Poor Credit 7 $18,865
Horrible Credit 6 $18,865

Again, these are merely approximations. For a definitive quote, you must submit your application.

Loan-to-Value Ratio, Down Payment

Do you have a credit score of 700 or higher? Then you probably won’t have to provide a down payment. Shoppers with bad credit, on the other hand, may need to provide a down payment. At this point, the Loan-to-Value ratio becomes a critical factor. Divide the amount you borrow by the wholesale value of the car or truck. This is the LTV.

Amount Financed Vehicle Value LTV
$7500 $10,000 75%
$12,000 $15,000 80%

Dealerships that work with bad credit in Chesapeake often strive for an LTV of about 70%. The good thing is, as the economy gets better, more dealers and lenders should be able to offer car loans with no down payment. Submit your application, and indicate zero down payment in the appropriate section. We’ll strive to place your application with a dealer or lender willing to finance your purchase, no down payment necessary.

In House Financing Car Lots in Chesapeake

You’ve probably seen car lots advertising buy here pay here loans in Chesapeake? These dealerships finance people that can’t get approved by a traditional lender due to credit problems. Everything is paid to the dealer, often weekly, and the vehicles are typically less than $10,000. If that sounds enticing, keep in mind the drawbacks, which include inordinately-high rates of interest, down payments, and non-payment penalties. Typically the vehicle can be repossessed after only a single missed payment, though you should check with the dealer for details.

A better choice may be to apply for financing through a Chesapeake bad credit car dealership in our network. The terms and rates will be more reasonable, and they will help you to re-establish your credit by submitting your payments to credit reporting agencies like Transunion, Experian, and Equifax.

Chesapeake-Specific Credit, Income Numbers

Dealers and lending companies are worried about a lot more than just your credit score. Lenders check your income, employment history, and credit profile.

The following are average stats for Chesapeake residents.

  • Gross Earnings: $2,695 Per Month
  • Average Car Payment: $296 (11% of Income)
  • Recommended Car Payment: $216 to $270 (8%-10% of Income)

Ever wondered about the credit ratings of your neighbors? We have calculated how many Chesapeake residents fall into each range of FICO scores.

FICO Score % of Population Residents
300-499 2% 3,984
500-549 5% 9,959
550-599 8% 15,935
600-649 12% 23,902
650-699 15% 29,878
700-749 18% 35,853
750-799 27% 53,780
800-850 13% 25,894

If you’re in one of the lower ranges, don’t be concerned. We have lenders who help people in each of these credit tiers. We also serve customers in nearby Portsmouth, as well as the entire Tidewater region.