Subprime Auto Finance and Ways to Trim Their Interest Rate
Sub Prime Auto Loans is an exclusive car loan type offered to the car loan buyers with poor credit score and damaged credit history. Almost all banks, auto financing companies and credit unions offer subprime auto loan for people with bad credit score.
However a auto finance given to people with bad credit score comes with very high interest rate and other hidden charges. The loan rate can be literally high at times so that you will end up paying double the money for your car purchase. To avoid such occurrences you can actually make use of the following tips that will help you trim down the loan rates:
Check credit score
You get a subprime auto loan when your credit score is bad or less for regular auto finance approval. In such situations it is better not to rely on free online credit score checks. Just spend few dollars and check your credit score online to know your current credit score and also your credit history. This actually helps you to push the financing company to approve the car loan faster.
Economical car
Buying economic car model that is also fuel efficient can earn you better value when it comes to subprime auto loan buying. Make sure that you buy a new or used car which is fuel efficient and has maximum safety features in it. Buying sports cars and luxury cars cost you more interest rate and they also delay your subprime car loan approval process. Always choose an economical car to slash down rates for the auto loan with bad credit.
Subprime loan from Employer
Check if your employer can arrange for subprime auto finance. You can also apply with your employer for group car loans so that they may skip running a credit check. When a corporate company arranges the subprime Auto Financing, the bank or the credit union normally tend to skip the credit check for the loan applicants.
You can also try to get a co-signer for your subprime car loan to make sure you get them with lesser rates. With a valid co-signer for the loan you are about to purchase for the car, the possibilities of getting approval is very high. Also get car loans with short term repayment option to get faster loan approval for the subprime loan for the car. Try to get car insurance for the auto finance you are about to purchase to reduce the interest rates.
Ensure that you always compare your auto loan online to find cheaper subprime loan offers.
