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Follow on Google News | What Is A Typical Bad Credit Car Loan Interest Rate?This article explores some of the commonly asked questions regarding bad credit car loans.
By: Whitby Motors When you are trying to get a car loan, the bank or the "lender" typically will assets your risk factors first, and according to their assessment will offer you an interest rate that will reflect your risk factor. Bad credit car loan in another word is deemed as "risky" loans due to the borrower's past. The "lender" that is willing to take the chance to loan out the money usually will trade the risk factor with higher interest rate. Typical interest rate on a new car loan can range anywhere from 0-8%, usually the manufactures will "buy down" the interest rate from the bank to create an illusion of a lower interest rate such as 1.9%, or 2.9%. Don't get caught up in this hype or promotion, because reality is a credit union will typically produce a decent interest rate of 5-6% assuming you have good credit to qualify for the loan. A typical bad credit car loan will carry interest rate range from 9% all the way up to 29%, where do you end up in that range depends on your credit score, history, co-signer and down payment. A respectable interest rate coming from a bad credit lender will typically be 14-18% and of course as you make your payment and your credit score re-build. There is always a chance they can lower your interest rate with time. It is usually better for you to take a higher rate to begin with just to re-build your credit, and lower your payment overtime. This article is brought to you by Whitby Motors Bad Credit Specialists, for more information please visit us online at http://www.whitbymotors.com # # # Whitby Motors is Whitby's premier bad credit car loan provider, specialize in bad credit used car financing. They approve everyone regardless of your credit history. For more information please visit http://www.whitbymotors.com End
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