Looking for a better way to finance a car despite some credit-related setbacks? You certainly aren’t the only one. More than 25% of the Nebraska population is believed to have a credit score that’s subprime or worse. Fortunately, we’re here to help. We can help you secure financing through our vast network of Nebraska dealers and lenders. Just submit an application through our website, and we start working, matching you with a dealer or lender wants to finance your loan. There aren’t any costs or obligations, and we’re able to place the vast majority of applications we receive, provided that they meet the minimum requirements for approval.
Interest Rates for People with Poor Credit
Steeper interest rates are a fact of life when your credit score is 620 or lower. Your specific APR will depend on a variety of factors, including your lender, credit score, type of loan, repayment term, and other factors. We’ve provided a few estimations based on our experience in the industry.
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Importantly, these rates are not advertisements. They are simply estimations to give you a general idea of what to expect. Your “mileage” will vary, as they say. In other words, your actual quote could differ greatly from the numbers published above.
To reduce the amount you wind up paying in interest, you can offer a down payment and select the shortest financing term you can.
Minimum Approval Requirements
- Resident of Nebraska, at least 18 years of age.
- Monthly income of $1500 (pre-tax).
- Gainfully employed for at least 12 months.
- Any bankruptcy discharged.
- No repossessions in last year.
Used Vehicle Lending Requirements
Both new and pre-owned vehicles are typically available, even if your credit is far from prime. When it comes to used cars, requirements vary from company to company. However, we’ve listed a number of the common requirements below.
- Vehicles may be new or pre-owned.
- Not more than 75,000 miles on vehicle.
- Vehicle 6 years old or newer.
- Minimum amount borrowed of $7500.
Most lenders require that you purchase your vehicle from a specific dealership or network of dealerships, not a private seller or independent dealership. Typically, better credit is required in such scenarios, as they are deemed higher-risk by the lender.
Bad Credit, No Down Payment?
Many lenders and dealers who work with applicants with bad credit do indeed require a down payment. The lower your credit score, the higher the down payment (typically). Cash is preferable, but in many cases trades are accepted as an alternative. A down payment does have distinct advantages: it lowers the amount you have to borrow, thereby meaning less interest paid in the end, and it also lowers your loan-to-value ratio, typically resulting in a better rate and chance of approval. So by putting money down upfront, you can save money in the end. A down payment also helps minimize negative equity–a prime concern for the subprime borrower.
Credit Repair Through Financing
Yes, financing a vehicle will improve your credit – as long as you pay it off as contracted. What’s more, you don’t have to wait until you’ve fully paid off the vehicle to benefit from this credit boost. Making your payments month after month will boost your score. Missing or delayed payments, in contrast, can destroy your credit. Consequently, you want a monthly payment you’re able to afford – don’t stretch your budget on this. While experts advocate dedicating just 18-20% of your income to vehicles, no more than half of that (10%) should be put toward your car payment. The average monthly income in Nebraska is $2,210, which would equal a payment of $221 per month. Spending too much could result in delayed payments, delinquency, even default.