Getting a Car Loan with Bad Credit Part 1

You have only learned that the request for a car loan with XYZ Bank has been refused. The loan officer explains that the choice has to do with your credit rating. XYZ loans only to prime borrowers; your credit rating, she continues, places you squarely in land.



Subprime. You are perhaps not certain precisely what it means, but it seems just like a condemnation which will forever brand you as being somehow deficient to lenders.

Nevertheless, being deemed subprime will not suggest that the borrowing days are over. For one to get that sought - after auto loan (albeit from a different lender). it might be possible.

But first you must know the word that defines you. A borrower is one with poor credit. Each lender has its own definition of a subprime borrower is constituted by what, but usually, a credit rating of significantly less than 620 lands you in this less - than - desired class. To find out more on credit scores, and what kind of factors lead them to endure, please see Credit Scores Demystified and Understanding Your Credit Report.

There are lots of credit grantors specializing in subprime lending who are willing and keen to loan money to individuals with poor credit. Naturally, though, there is certainly a catch. The rates of interest for subprime borrowers are often rather steep --- considerably steeper than those paid by their more credit-worthy brethren.