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3 Ways Bad Credit Impacts Car Loans

Having bad credit is something that many people worry about. After all, most consumers know that they have a credit history that will be checked any time they take out a loan or credit card. Having bad credit, they know, can limit their opportunities to take out a large loan or get a larger credit limit. However, we want our customers to know that having bad credit will not limit their ability to buy a used car from us. In fact, we are proud to offer competitive and affordable bad credit car loans to our customers to help them get cars that will suit their lifestyles.

If you have bad credit and are trying to get a car loan, then education is the first thing that you need to do in order to make sure that you understand how you bad credit will affect your car loan. Here are 3 ways that bad credit impacts car loans:

Higher interests rates

If you have bad credit, it is true that you will most likely have a higher interest rate on your used car loan than if you were to have flawless credit. Remember: not many people have flawless credit. In fact, most people are probably in your situation. Therefore, having bad credit does not make your loan impossibly unaffordable. Instead, having bad credit is actually fairly normal. Therefore, your loan interest rate will probably be more average than you might think.

Lower loan amount

In many cases, having bad credit will limit your ability to take out a loan for a hugely expensive car. Instead, our lenders will review your financial situation and make sure that we give you a loan for a car that you can actually afford. For example, if you have a certain income, we will make sure that the loan you get is suitable for that income so that you can actually afford it for years to come. A bad credit history may simply mean that we will take into account other debts that you have when we determine what kind of loan you will get.

Bad credit car loans can improve your credit

Bad credit car loans can actually improve your credit because they show to future lenders that you have been able to take out a car loan and actually repay it on time and responsibly. For that reason, we encourage you to take out a bad credit car loan if you are interested in improving your credit.

Contact us today for more information about bad credit car loans and how they can help you.

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