How Much More Interest Will I Pay On My Car Loan If I Have A Bad Credit Score?
Can I buy my dream car with a bad credit score?
People often ask this question at the dealership. It’s only natural. People worry about their credit score slumping their chances of getting the car they want.
We always give the same response: Yes, you can buy the car you want, but the process will be significantly different than it would be for higher credit scores.
Usually, the difference will be reflected in how much interest you’ll have to pay.
Know your score and learn about your options
Before calculating how interest you will need to pay due to your credit, you will need to determine your score. After that, you’ll need to look at all the options that the finance department at a dealership can provide.
You can find out your exact credit score with your credit card company or through online sources that give you a full report on your credit history.
After learning your credit score and knowing your interest rate with the dealer, you will need to plan how much you will pay every month and in total at the end of the contract.
For example, a used car for sale at a $ 20,000 price, a 10% down payment and a car loan with a 5-year duration. After the down payment, the remaining amount will be $ 18,000 spread over five years with a 15% interest rate will end up paying more than $ 27,000 in total for the car, with monthly payments of $ 428.
If you want to improve your credit score, buying a car might be just what you need! Your loan may have a bad rate today, but it will put you on the path to getting better rates in the future as long as you stick to the payments.
Are you worried about your credit score? House of Cars is here for you!
At House of Cars Edmonton, we provide various financing options for any of our pre-owned cars for sale, even with bad credit.
You read that right. We approve bad credit scores and help our customers find a car that speaks to them without having to worry about their finances. Our team will design a plan that fits your needs!
Contact us to learn more about our accessible financial deals.