Bad Credit Auto Loans in Theodore (AL)

Here at Alabama Auto Finance, we get our users approved for financing with no fees, hassles, or obligations. We’ve been in the auto finance industry for years, long enough to develop a vast network of lenders and dealers, many of whom offer online approvals. When you apply online, our loan companies compete for your business.

Below-average credit? Don’t worry. We help applicants with credit problems each and every day. There are three separate credit tiers typically classified as subprime:

  • Tier 3/C: 580-660
  • Tier 4/D: 520-580
  • Tier 5/F: 250-520

Regardless of your score, there are lenders who want to approve you for financing. It is true that bad credit scores mean higher interest rates, which means it’s crucial for you to purchase a cost-effective vehicle with low payments. Let us help you find a bad credit car dealership in Theodore who’s willing to approve you for financing – and since we’re compensated by the dealers themselves, it’s free! Apply Now!

The amount you’ll be able to finance is primarily determined by your income and history of credit. The following chart shows loan amounts for people of a variety of credit scores, given an income of $2,115 a month, which is the average for Theodore residents. Please bear in mind that these are only estimates.

Credit Income Factor Loan
Great Credit 10 $21,150
Average Credit 9 $19,035
Slow Credit 8 $16,920
Bad Credit 7 $14,805
Really Bad Credit 6 $14,805

Simply because it’s possible to borrow this amount, doesn’t mean you should. A smaller loan is advisable, because it will lower the risk of default.

Should I Put Money Down?

No down payment? In many instances, this isn’t a problem. Having said that, providing a down payment affords you considerable advantages:

  • Shortens loan, meaning less is paid in interest.
  • Lowers payment amount.
  • Decreases the risks of an underwater loan.

Nevertheless, you don’t need a down payment to apply. Submit your application, and enter a zero in the down payment section. We’ll place your application with a lender or dealer who can approve you for financing, zero down payment required.

Buy Here Pay Here Dealers in Theodore

If you are considering working with one of the buy here pay here dealerships in Theodore, due to credit problems, then bear in mind that a down payment will probably be required. Shoppers who have been unable to secure a loan because of major credit problems like bankruptcy often find themselves at car lots like these. Everything is paid to the dealer, sometimes weekly, and the vehicles typically cost $10,000 or less.

Unfortunately, most of these car lots can’t help customers repair their credit. In most cases, it is better to apply online, so we can find you a car loan in Theodore with lower rates and better terms.

Credit and Income: Theodore

Though important, your credit score is only part of the equation. Creditors look at your income, stability, and debt repayment history.

The following are average stats for Theodore residents.

  • Pre-Tax Salary: $25,376 Annually
  • Average Car Payment: $233 (11% of Income)
  • Recommended Car Payment: $169 to $212 (8%-10% of Income)

Less-than-perfect credit. It’s quite common nowadays in Theodore and across the state of Alabama. This chart shows the estimated number of Theodore residents at each level of the credit spectrum.

FICO Score % of Population Residents
300-499 2% 677
500-549 5% 1,691
550-599 8% 2,706
600-649 12% 4,059
650-699 15% 5,074
700-749 18% 6,089
750-799 27% 9,133
800-850 13% 4,397

Your credit rating will primarily determine your rate of interest, but provided that you have the income, we can usually find somebody to finance you, even when you need an auto loan in Theodore with bad credit.