Many may wonder just what it will take for you to get a auto loan with fair credit. At times people do witness a increase in credit score but that may only affect one bureau. All auto lenders use 3 credit agencies when issuing a loan. However there are some better options available for people who have horrible credit.
The poor credit dealerships are here to give you a vehicle that is based solely on income and not your credit history. You can go ahead and already guess that we are talking about the buy here pay here dealerships. These auto dealers are best known for giving people higher than normal interest rates but this is what happens when you fail to meet your obligations in a responsible manner.
There is usually a lost on your end and on the dealership side because you have maybe failed to make your monthly car payments. This is usually why the interest rate is higher to be able to cover a potential lost during default.
Do not worry most of these dealerships will only want you to pay on these vehicles for 12-24 months. So your rate would only affect you for a short period of time versus 5 or 6 years.