What to Know About Bad Credit Car Financing

There are plenty of car dealers that can help you if you have bad credit and need a car. They usually offer loans that are specially designed to help people with bad credit get a car they really need. With a new car, you can potentially get a better job and even pull yourself out of bad credit. Before you visit a Houston TX bad credit car dealer, there are a few things to know about bad credit car financing.


Some bad credit car dealers might limit the selection of vehicles available to you. SUVs and trucks are often worth more, and they don’t want to take that much of a risk. If you have your heart set on something other than an actual car, you might have to shop around before you find a dealer that finances them with bad credit.

Interest Rate

The dealer is ignoring your credit history enough to trust you with financing, but that doesn’t mean you’re not a risk. Your history can be pardoned enough to grant a loan, but the interest rates are high. Ask if there is a penalty for paying off the loan early; interest rates are so high for bad credit loans that you should refinance once you improve your credit.

Steady Income

You need to have a steady income to get a bad credit loan. Since you don’t have the track record to prove your reliability, the dealer has to rely on the fact that you have a steady income. Most dealers want you to have a steady income dating back at least one or two years, so make sure you have that.

Down Payments

You’re probably not in great financial shape if you have bad credit, so not every dealer requires a down payment. If you have the money, make the down payment to reduce the amount of interest you’re paying later. However, if you’re strapped for a down payment, there are dealers that don’t need one.

If you need a Houston TX bad credit car dealer, contact The KEY. Find them online at.