Don’t worry if you fall into the “poor” to “dismal”
range – not all hope is lost!
Don’t worry if you fall into the “poor” to “dismal” range – not all hope is lost! Your credit score is only one factor of many that dealerships take into consideration when deciding to offer you a loan.
If you have “average” credit or above, there’s a good chance you can obtain a loan just about anywhere – bank, credit union or at the dealership. If you have bad credit, however, you may be restricted to where you can obtain financing. Luckily, there are financial institutions and new and used car dealerships that specialize in working with people with bad credit. These types of lenders typically require that you can prove your creditworthiness by other means, including your employment and housing history, income and several other factors.
A typical loan term for a used vehicle can range anywhere from 36 to 84 months, with 60 months being the most common. Interest rates can vary considerably and they change often, which is why it is so important you shop around for the best terms you can get with your current credit profile.