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Bad credit car loans with low monthly repayments: Are they possible?


Whatever your reasons, when you have a bad credit rating but need a car, it can be very distressing. Typically, if you know you’ll have problems getting approved for finance, you’ll also understand that you could be facing higher interest rates and monthly repayments.

Typically, a standard car loan is between 4.45% and 8%. When you’ve got bad credit, this can change to between 4.445% and 45%. A huge difference in repayment amounts. And when you’ve got a bad credit rating, unfortunately you’re more likely to have to approach the latter.

So, are there any lenders out there who’ll offer a low monthly repayment to someone with a bad credit rating?

Thankfully, the answer is not a no. There are certain things you can do which can persuade lenders that you’re reliable enough for a lower interest rate, and therefore monthly repayment.


Provide a guarantor

This is the best way to secure a loan with low monthly repayments. A friend or relative with a good credit rating, who’s willing to co-sign the loan with you. This means if you did default on any repayments, they’d be liable to take over. Providing they have a strong credit history, it should be quite easy to get approved.


Provide a better story

You may have got your bad credit rating from something that happened many years ago. Perhaps 5 years ago you were struggling to pay your monthly bills but 3 years ago you made the decision to get organised. You’re now earning a sufficient salary and have been steadily getting yourself out of the red but you’re still finding it difficult to find a lender. A professional car finance consultant can help in this situation. They’ll be able to work with you to build a strong case. They’ll know how to demonstrate your ability to now keep on top of your finances. Then, they’ll negotiate with the lender to get you a new car at lower monthly repayments.


How can a car finance consultant help?

When you work with something every day, you get to know it inside-out. And that’s the same with a professional car finance consultant. They work with people who struggle with bad credit. And they work with lenders. So, they’ll know what they’re looking for.

If you do decide to enlist the help of a consultant, they’ll help you to get your bank statements in order. They’ll negotiate with the lenders by focusing on your financial strengths. They’ll also know which lenders you’re more likely to get approved with, so your chances of getting a loan with a low monthly repayment are higher.


How to get lower interest rates

A consultant will go through many things to help secure you a lower interest rate. These include:


  • *  Consolidating your finance statements to focus on your financial strengths. This will show the lenders that you’re financially responsible and have a form of income.

  • *  Help you to get your bank statements in order. They’ll review them for any errors. The less errors you have, the better your chances of getting a loan with a lower interest rate.

  • *  Work out a plan of action, based on your current situation. Once they have an understanding of your individual circumstances, they’ll know which lenders to approach.

  • *  Negotiate. Negotiate. Negotiate. Did we say negotiate? Once they find the best lender for you, they’ll know how to negotiate a lower interest rate on your behalf.


Article Provided by Loans For People With Bad Credit.