Bad Credit Auto Loans in Bessemer (AL)

Are you a Bessemer resident? Do you need a car loan, the sooner the better? We can help. We have relationships with dealers and lenders in Bessemer who want to approve you for financing – this week! This is how it all works:

  1. Take a few minutes to fill out your secure application.
  2. Log in to your inbox for your approval status.
  3. Work with your finance specialist to complete your documentation.
  4. Now you can buy the car you want from a nearby dealer.

You too can be one of the many Bessemer residents who’ve used these steps for the car they want!  Apply Online!

Credit Tiers and Interest Rates

Bessemer-ALCredit is the most significant factor when financing a car, so it comes as no surprise that a bad credit score can be a roadblock to financing. This is especially true if you try and work with banks, which are notorious for turning away “high-risk” applicants. Not us, however. There are six principal credit tiers in the auto finance industry, and we have lenders that support each of them. The lower your credit tier, the higher your interest rate.

This is not the place for us to try and estimate your interest rate, as there are simply too many variables which come into play. However, we can say that, if you have bad credit, you can generally expect a rate of 9-19% APR in the state of Alabama.

Minimizing Your Total Interest and APR

Because this is quite high, the total interest on your loan will become a significant factor over time. That means it’s best to finance for the briefest term possible (36-48 months is optimal), while maintaining a car payment that amounts to no more than 10% of your regular monthly income. If you want to secure the lowest rate you possibly can, then request a copy of your credit report and ensure that there are no errors on it. If you find any inaccuracies, these can be resolved through a dispute filed with the credit bureau that is reporting the error. This could help remove any negative items from your report, thereby increasing your score, decreasing your interest rate, and saving you money on your vehicle.

Let us help you find a bad credit car dealer or lender in Bessemer willing to approve you for a loan – today! It’s easy. Go here to apply online, and we’ll go to work finding you a bad credit car loan in Bessemer that suits you needs.

Lending Requirements to Consider

Proof of income is often expected for any bad credit car loan in Bessemer. Minimum income requirements vary from lender to lender, but generally they want you to show an income of $1250 to $1800, at minimum. A down payment may also be required. For a used vehicle, 10% is optimal, while 20% is best for a new one. However, the actual amount required could be much less. Remember that your existing vehicle, if you have one, can be used for trade allowance, effectively reducing the down payment you owe. Estimating how much you can borrow is pretty easy. Just multiply your monthly income by the income factor that corresponds to your credit score. We’ve included a sample, based on Bessemer’s average per capita income: $2,117.

Credit Score Income Factor Amount Borrowed
Great Credit 10 $21,170
Decent Credit 9 $19,053
Slow Credit 8 $16,936
Bad Credit 7 $14,819
Horrible Credit 6 $12,702

Simply because you can borrow a particular amount, doesn’t mean you ought to. A smaller loan is recommended, because you’ll be able to repay it more quickly.

Zero Down Payment?

Excellent credit? Then you might not need to bother with a down payment. Buyers with less-than-perfect credit, however, may need to offer up a down payment. Obviously, financing customers with problematic credit is a much riskier process, and a down payment ensures that some percentage of the vehicle’s value is not in jeopardy. That said, there are lenders that offer financing for people with no down payment. We get consumers approved each and every day, even with credit and down payment issues. Get approved today!

In House Financing Dealers in Bessemer

Perhaps you’ve seen car lots in Bessemer that advertise buy here pay here financing? Dealers like these approve car loans directly, instead of outsourcing this to banks or lenders. They approve people with problems like bankruptcy, foreclosure, or repossession on their record. If possible, steer clear of buy here pay here car lots and opt for a car loan from a bad credit car dealership in Bessemer that offers lower rates. Apply today – let us get you approved.

Bessemer Consumer Profile

Listed below are average stats for Bessemer residents.

  • Average Salary: $2,117 Per Month
  • Average Monthly Payment: $233 (11% of Income)
  • Suggested Car Payment: $169 to $212 (8%-10% of Income)

Below-average credit. It’s quite pervasive nowadays in Bessemer and across the state of Alabama. The chart below shows the estimated number of Bessemer consumers at each credit level.

FICO Score % of Population Residents
300-499 2% 1,416
500-549 5% 3,541
550-599 8% 5,666
600-649 12% 8,499
650-699 15% 10,623
700-749 18% 12,748
750-799 27% 19,122
800-850 13% 9,207

If you’re in one of the lower ranges, don’t be concerned. We can still help you get approved.

Are you ready to get going on an auto loan in Bessemer? It’s easy to submit your application.