It can be difficult buying a vehicle without a good credit score. Fortunately, with bad credit financing, even if you have a low score, you can still get a loan. PA Auto Credit answers questions car buyers typically have about the requirements for bad credit financing.

How Does Bad Credit Financing Work?

For the most part, bad credit financing is like regular financing. The main difference is that bad credit financing usually has a higher interest rate attached to it. Depending on the lender, it may also require a larger down payment.

How Much Money Will I Need to Put Down?

Lenders want to know that you are serious about your purchase before giving you an auto loan, which is why a big down payment is important. Ideally, this should be 20 percent of the sale price, but even going higher can be beneficial, as it helps keep the interest rate lower.

Will a Co-Signer Help?

Getting a co-signer for your loan can provide a big help. If this person has a good credit score, not only will a lender likely be more willing to give you money, but you may not have to supply as big of a down payment. Plus, you could get a lower interest rate.

Will Bad Credit Financing Improve My Credit Score?

One of the main benefits of bad credit financing is that over time, it helps to rebuild your credit score. As long as you make your payments on time, you should see your score go up.

Is Refinancing an Option?

Even if you don’t get a great interest rate when you purchase your car, that can change. If your credit score improves, you should be able to refinance your loan. This can lower the interest rate, which will help save you a lot of money over time.

Get All of Your Bad Credit Financing Questions Answered in Fairless Hills, PA

Any other questions about bad credit financing? Feel free to reach out to our auto lender in Fairless Hills, PA. No matter where you stand credit-wise, we will help you secure a loan so you can purchase your perfect new or pre-owned vehicle.