Getting any type of loan is difficult enough these days, let alone if you find yourself with bad credit. Unfortunately, the economic fallout from the crisis is only going to make things worse, but all isn’t lost. You see, if you take the right approach, you needn’t worry about bad credit car loan interest rates. This article will outline a simple approach that can help you save big on your next application.

1. Start By Increasing Your Down Payment
If you have bad credit then most lenders are going to charger you a higher that average rate of interest. The only way to increase your chances significantly of getting approved, is by increasing the amount of any down payment on the car you are trying to get. Not only will you have a greater chance of being approved, but your interest rate won’t be as high. The less you borrow, as poor credit risk, the greater you gain favor with lenders.

2. Show Solid Proof Of Consistent Income
Lenders like to know that when they give out a loan, there is strong likelihood that it will be repaid. The greater your demonstration of ability to repay, the greater your chances of being accepted. But no only that; you see, even though you may be deemed a bad credit risk, the fact that you appear to be able to manage a debt, at least through income proof, will cause lenders to relax their lending rates to you. Read the rest of this entry »