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In this day and age, it’s very challenging to buy a new car if you don’t qualify for a loan. When you have excellent credit, this is a pretty painless process. If you’ve got unfavorable credit ratings, however, it can be a proper aggravation. We make it possible to get approved for your auto loan today, at a reasonable interest rate, even when your credit isn’t the best.

Lenders and dealers will fight to fund your loan, putting you in control of the financing process.

Car Loan Rates in Selma

Here we have rates of interest you can expect at varying credit tiers. These are not to be perceived as advertisements. Your precise rate of interest could vary appreciably from the rates of interest listed here.

Credit Score New Car Used Car
Excellent 3.0% 3.4%
Good 4.3% 4.9%
Average 6.0% 7.3%
Subprime 8.7% 9.8%
Bad 13.5% 14.3%
Very Bad 14.0% 16.0%

Used Car Auto Loans in Selma

New vehicles are appealing, for certain. On the other hand, new cars and trucks depreciate so quickly, second hand vehicles are usually the better value. The numbers speak for themselves.

Years Old Price Rate Months Payment Interest Total Cost
New $17,400 6.00% 60 $336.39 $2,783 $20,183
1 Year $13,920 7.50% 60 $278.93 $2,816 $16,736
2 Years $11,832 7.50% 60 $237.09 $2,393 $14,225
3 Years $10,057 7.50% 60 $201.53 $2,034 $12,092

For most individuals, a used vehicle is a better option. Here are the most popular limits on auto loans for used cars:

  • Car no older than 7-10 years.
  • Mileage no higher than 100,000.
  • Bought via dealer, not private party.

Poor Credit Auto Loans in Selma

Poor credit has become a major problem among the consumers of Selma and beyond. If you have a credit score higher than 700, you shouldn’t have any issue obtaining financing, but approval and annual percentage rate both become concerns if you’ve got poor credit. A couple of decades ago, there weren’t but a few auto loan companies who would fund auto loans for those with low credit scores. Now many finance companies, not to mention some banks, have subprime finance departments.

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A lot of consumers find themselves going to buy here pay here car lots, most of which don’t check a consumer’s credit. Of course, your credit isn’t going to be a concern, but you will wind up forking over a lot in interest for a high mileage vehicle.

If possible, you’ll want to obtain your auto loan through one of these loan companies:

  • Bank.
  • Credit union local to you.
  • Automotive finance company.

A dealership or finance professional will help you get financed through one of these loan providers. A regular loan provider will report to the credit bureaus, so your credit score will improve if you make your payments on time.

Best of all, you can submit your application online.

Minimizing Your Interest Rate

If you need to minimize your rate of interest, there are several options. A large percentage of consumers now have discrepancies on their credit reports. These mistakes could be harming your FICO score, and you don’t even know it. Lots of people don’t know that, once per year, you can check your credit report completely free via www.AnnualCreditReport.com. Selma has a number of credit repair companies to help you fix these inaccuracies, or you can write the credit agencies all by yourself. If you don’t have favorable credit, having someone with a good credit rating cosign your car loan could give you a better interest rate.

Can a Car Loan Improve Your Credit?

An auto loan can improve your credit, so long as it meets these conditions:

  • It’s not supplied by a BHPH dealer.
  • The payments are made in a timely manner, every month.

Please remember that this is a step by step process. Make sure to sign up for automatic payments, as this will stop you from forgetting payments.

Selma Resources

Credit Unions

Credit UnionStreet addressZip CodeTelephone
Craig1102 Singleton Dr36703(334) 875-7827
Craig Credit Union1111 Highland Ave36703(334) 875-7827
First Kingdom Community1705 Selma Ave36703(334) 875-0736
Mutual Savings907 Medical Center Pkwy36701(334) 872-1733
Riverdale198 Highland Ave36701(334) 872-9096
Riverdale601 County Road 7836703(334) 875-4624