Having bad credit or no credit at all can make financing a car an uphill challenge. While many banks are inclined to waive off Auto Loan applicants who don’t have stellar credit, local credit unions typically serve all people – including those who have less than perfect credit or no credit at all.
While subprime or bad credit car loans may sound intimidating, with proper research, you can find reliable loan programs to help you get the vehicle you need while getting your credit and finances back on track.
What are Bad Credit Car Loans?
Often times, people with subprime or less than perfect credit are unable to qualify for traditional Auto Loan financing. Some lenders, like Peach State, offer a special car buying program that caters to the need unique needs of people with not so perfect credit. Our Fresh Start Auto Loan is structured to help people with subprime credit get vehicle financing and make on-time monthly payments so they can payoff their loan in a reasonable length of time.
What is the Lowest Credit Score You can Get a Bad Credit Car Loan With?
When it comes to car loans for people with subprime or less than perfect credit, there are many factors considered beyond credit score. Peach State understands that sometimes people need a second chance. Our Fresh Start Auto Loan is a solution designed to help people with less than perfect credit finance a car, SUV or truck, while improving their credit score, and financial well-being.
By making consistent payments on time, you can improve your credit score and get your finances back on track with BALANCE Financial Fitness coaching. Before you start car shopping, get pre-approved for our second chance Fresh Start Auto Loan program so you can know how much car you can afford. We want to set you up for financial success!
What Lenders Offer Bad Credit Car Loans?
If you're ready to purchase a new or pre-owned vehicle, it’s important to research your loan options. The used car lending industry is full of predatory lenders who are more concerned with their bottom line than your financial well-being. Don’t be surprised if dealerships that offer “Buy Here, Pay Here” programs have contracts with extremely high interest rates, inflexible repayment terms, and require a final lump sum before you actually own the vehicle.
While banks might approve a loan, some may require you to have a large down payment and will often add additional fees and finance charges.
The best solution is a reputable local credit union that features a second chance or loan program. Credit unions, in contrast to for-profit banks, do not pay shareholders dividends. Instead, the profits are passed back to the members in the form of lower loan rates and favorable terms, higher savings rates, and lower fees.
Shopping for a new or pre-owned car or truck? Save time and money with our tips!
When Comparing Bad Credit Car Loans, Compare These Things:
When comparing dealership, bank, and credit union financing options, be sure to invest some time in comparing what options and features are available. The difference between interest rates, repayment terms, fees, and other loan details can differ widely among bad credit car loans and second chance programs such as Peach State's Fresh Start Auto Loan. Keep an eye out for the following potential features that could mean the difference between an affordable loan payment and possibly damaging your credit score further.
Auto Loan Rates
While all lenders must balance potential risk and typically have higher rates for those with lower credit scores, there is a large range of Auto Loan interest rates from different lenders. You should compare these rates to find the right loan for you and your budget. Explore Peach State’s car loan rates and Car Loan Calculator to start taking advantage of the second chance you deserve!
Car Loan Program Perks
Select lenders will offer a variety of car loan benefits to help people save money, improve their financial well-being, and secure a reliable vehicle.
Peach State offers access to smart car-buying guides to assist less experienced borrowers navigate the application process to know exactly what to do to complete an application right the first time. Knowing what to expect takes the stress and anxiety out of the unknown.
Peach State also offers members free financial resources and coaching through BALANCE Financial Fitness. This program offers tools to help raise your credit score, making it less daunting to get your finances back on track.
Car Buying Assistance Programs
When comparing lenders, always explore the extra options available for making your car buying experience easier.
Peach State goes the extra mile by offering members a unique and no-cost car shopping experience through Auto Assistance. This vehicle buying service helps members shop for a suitable car, truck, or SUV, negotiate a trade-in value, review CarFax reports, and more.1
Discounted Car Insurance
The cost of financing a new or pre-owned vehicle doesn’t stop with your Auto Loan. Monthly insurance premiums are also impacted. At Peach State, members and families can benefit from our TruStage Auto Insurance Program2 offering special savings, quality protection, and customized auto insurance you can trust. You can expect low rates, reliable service with custom options, and 24 hour claim assistance.
Loan Protection Options
Discover which potential lenders offer Debt Protection, GAP, and an Extended Vehicle Warranty alongside your second chance car loan.
- Debt Protection: When a specified protected event such as death, total disability, or involuntary job loss occur, debt protection coverage cancels/waives all or a portion of your loan balance, which helps provide you with financial protection and peace of mind.
- GAP Coverage: Guaranteed Asset Protection (GAP) coverage helps you in the event your new or pre-owned vehicle is deemed totaled from an accident or if it is stolen. If the value of your car is less than the balance of your Auto Loan, there's a gap that isn’t covered by standard auto insurance. Peach State’s Guaranteed Asset Protection (GAP) Coverage helps ensure peace of mind that you won't continue to pay for a vehicle you can’t drive.
- Extended Vehicle Warranty: Finally, you can usually add an extended vehicle warranty above and beyond what a dealership offers. If something goes wrong with the vehicle after the initial warranty expires, the cost of repairs may be fully covered.
With Peach State, when you take out a Fresh Start Auto Loan, you’ll have an opportunity to add all three of these safety nets for added protection on your car and car loan.
Peach State Offers Members With Less Than Perfect Credit a Second Chance
At Peach State, we understand that your credit score shouldn’t prevent you from getting a much-needed vehicle your family can rely on. Our experienced lending team is ready to help get you into the driver’s seat with our Fresh Start Auto Loan.
Start your car buying journey today by getting pre-approved for your second chance car loan, or if you're ready to finance your car, apply online today!
Now that you know reliable bad credit car loans do exist, it is time to dive into more time and money-saving tips by reviewing our "Car Loans 101: Car Buying Made Easy" complete guide!
1 Peach State FCU has contracted with Auto Assistance, LLC to make this service available as a convenience to our members. Any manufacturer’s warranties are not services of the credit union and are not obligations of or guaranteed by the credit union. The credit union makes no representations as to the services of any provider or any vehicles purchased.
2 The TruStage™ Auto and Home Insurance Program is offered by TruStage Insurance Agency, LLC and issued by leading insurance companies. Discounts are not available in all states and discounts vary by state. The insurance offered is not a deposit and is not federally insured. This coverage is not sold or guaranteed by your credit union. MAH-1112-7C9E
