How can I get an auto loan without outrageous interest rates when I have terrible credit?

Deal Score0

I already have a loan-on my child’s car’ – with 29% interest. I need a new car for myself and do not want to pay that outrageous interest rate. I don’t have more than a couple hundred for a down payment. Is there anyone out there that will finance someone like me? I own a house and always pay my mortgage on time. I just had some financial problems several years ago that are still pulling my credit score down. The dealer where I want to buy the car from said my credit is something like 550 . Do I have any options at all? aside from the guy that will finance me at 29%? Help! I really need this car!
thanks for all the answers!!!
I did get a loan from Chase Bank-decent interest rate, $ 1000 down.
I appreciate your help! I guess it was my luck day!

6 Comments
  1. Reply
    bdancer222
    May 2, 2011 at 12:28 am

    Bad credit = high risk = high interest rate. You simple are not going to get a good interest rate with that score. You may not even be able to get another car loan if you already have a car loan in your name. That loan will count in your debt to income ratio even if your child makes all the payments.

  2. Reply
    DaBrat
    May 2, 2011 at 1:13 am

    See if you have any home equity in your home and maybe you could take out a second mortgage on your house. Those are going for about 5- 6 %. But I strongly suggest you don’t drowned yourself in credit that will take you years to come out of.

  3. Reply
    Peter M
    May 2, 2011 at 1:50 am

    29 % on a loan is criminal, and someone should have stopped you from doing such an ($ %$ & ) thing.

    You own your own home: Take out a mortage on the lowest interest rate you can find, maybe from your lender and first pay off your daughters car. That 29 % is crazy.
    Then you have a little left and purchase yourself a used 2005 or something with 40,000 miles for under $ 10,000.

    The only payment is to for the house and the additional mortage you took out.

    OR learn the public transportation in your area.
    OR make your daughter drive you everywhere.

  4. Reply
    My Take on It
    May 2, 2011 at 2:24 am

    Sorry, but with a score of 550 and only a couple hundred to put down, you won’t be getting a decent rate. You are lucky you can even finance a car.

  5. Reply
    Californian
    May 2, 2011 at 3:00 am

    I would go for a used car to avoid the hassle. Good luck

  6. Reply
    the kid
    May 2, 2011 at 3:59 am

    You can’t.

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