The post How To Get An Auto Loan With Bad Credit appeared first on Official TransUnion Blog.
Bad credit doesn’t necessarily mean that an auto loan is out of reach. Though lenders prefer borrowers with a credit score of 760 or higher, you may still be able to purchase a car with an imperfect credit history. Higher interest rates will probably accompany your loan, but shopping around and comparing offers can help you to find a fair price.
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Poor credit may cause higher interest rates, but there are plenty of ways to save money on your car loan. For starters, try choosing a shorter term loan. A 3-year loan will likely carry a lower interest rate than a 5-year loan. Your monthly premiums will be higher on the 3-year plan, but you’ll pay off the loan faster and pay less overall in the end. Also, consider buying a new car rather than one that is used — a loan for the latter is usually more expensive.