Whether you have bad credit or simply want to know about how to obtain a bad credit car loan, we have the answers to common questions that you may be asking yourself or your lenders. Before you read these questions and answers about getting a bad credit car loans, keep in mind that we offer bad credit car loans, regardless of your credit history or financial situation. If you do not find the answers to your specific questions about getting bad credit car loans in this article, then contact us to ask us your questions in person.
Why does credit affect my car loan?
Whenever you go to take out a loan for anything, such as a car, a house, or another major purchase, your lenders will need to assess the risk level associated with taking out that car loan. If you have a bad credit history, then the lender may decide that the risk level is higher with giving you a loan because they may determine that you will have a harder time paying back the loan. Don’t worry if this is the case; it doesn’t mean that you won’t get a loan, but it may mean that you’ll have a higher interest rate and lower loan amount. Each situation is different, so contact lender for more details about your specific situation.
How long will it take me to pay off the loan?
The answer to this question completely depends on each person. When you come in to take out a loan, your lender will factor the amount of the down payment that you are able to make, your current income level, and the interest rate that you’ll need to pay. Each of these characteristics will help to determine how long it will take you to pay off the loan.
You’ll have some input as well. If you prefer to make lower monthly payments, then the loan amount will be longer. If you are able to make higher monthly payments, then you may be able to get a shorter loan amount. We can show you a variety of different loan options so that you can determine which is best for you.
Does the loan only cover my car?
Yes. If you take out a car loan, then you are legally obligated to use the full amount of that money on the car. The car is collateral that the lender will be able to repossess if you are unable to pay off the loan. The amount of the collateral is factored into the loan amount and interest rate that you will get. Therefore, the lender needs to be sure that he or she can recuperate his or her losses if you are unable to pay off the loan.
Contact us today to speak with one of our credit specialists. At Thomson Auto Financing we can get you approved and driving. Apply today, its quick and easy, and you usually get an answer within 24 hours.