Bad credit car loans – You can get them

Jun 22 2010 With the flow of money quite tight and car loan lenders wary of extending loans to people with low credit scores, it is not an easy proposition owing a new or even a used car. In cases where the lenders are willing to advance car loans to people with less than desirable credit scores, the interest rates are pretty high and that can throw your monthly budget awry.
However, there is no need to get despondent. Besides the credit score, lenders do look at other factors such as your ability to get somebody to cosign for you or your ability to place collateral. In the case of a new vehicle, the collateral can be the vehicle itself as it has good value but when it comes to a used car, the collateral by itself may not be enough.
Lenders would also look at your ability to make a large down payment so that the risk is reduced further. Your debt to earnings ratio is also something that is considered when advancing a car loan and if this ratio is low, you stand a very good chance of getting that car loan.

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