29 Jan What Could Be Your Interest Rate for a Car Loan With Bad Credit?
If you think you cannot pass the approval process of your car loan, you are wrong! There are many situations that prove one can get their car loan approved even if they have bad credit or an unfavourable financial history.
So, if you want to buy the vehicle of your dreams and need funds for that, there are chances you get them. However, your approval also depends on the lender you choose. There are many lenders offering car loans in Melbourne that can help you get a vehicle loan with bad credit. But what’s the catch? None other than the interest rate levied on the loan!
In these cases, lenders charge a high interest, ensuring a borrower repays much more than usual over the years. However, you should first learn about the average interest rate usually levied on a vehicle loan.
What’s the Average Interest Rate for Car Loans?
As per the latest records, banks and private lenders charge around 6% for new car loans and 6.5% on used car loans on average. So, if you can take out a rate for your loan that’s lower than the average, you are a great bargainer. However, this also depends on your creditworthiness. If you have good credit, you can enjoy a lower interest rate.
But if you have a bad credit history, you will end up paying a higher interest rate than the average. You can still reduce your frustration level just by making the most of the repayment terms offered by your lender.
What’s the Interest Rate for a Car Loan with Bad Credit?
Generally, the interest rate can fluctuate between 15% and 20%—much higher than what lenders offer to prime borrowers. This is just because your financial history will come into play that is most likely to have been unfavourable most of the time.
If you have bad credit, choose a lender who has a track record of offering car loans to individuals like you. You can get in touch with them, learn how the approval works, and just follow the steps suggested by them.
How Can a Car Loan Calculator Help?
While a vehicle loan calculator cannot reduce your interest rate, you can check how much you will end up paying on your loan amount and for how many years you can continue the repayment. However, there’s good news for you: once you start repaying the installments on time, your credit health is most likely to improve, ensuring an increase in your chances of getting a future car loan approved with a low interest rate.
Bad credit car loans in Melbourne, on the other hand, are a great way to improve your credit score and maintain a good reputation for lenders. This way, you open the door to easy approval of car loans in the future.
Contact MBG Services Today!
If you have bad credit, let MBG Services help you secure the best car loan offer in no time. Contact us today at 03-9492 4860 to buy your dream car in a quick and hassle-free manner.