Giving You a 2nd Chance on Car Loans!

Three Best Ways To Lower A Subprime Interest Rate

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Subprime is nearly a curse word to some people. In 2009 subprime car loans accounted for about 17% of loan originations. That dropped to less than 10% in 2010 after the financial crisis was in full swing. Now, as 2011 begins to mature, subprime loans are becoming a little more popular. Here are the three things that you can do that will improve your chances of securing subprime or second chance financing.

  1. Get your credit report. This will let you look for  false information and give you a chance to dispute and have the information corrected. This may improve your overall credit score.
  2. Increase your down payment. If you want a subprime lender to consider your application, you have to have at least 20% down, whether that is in equity or cash. The more you put down, the better your approval rating will be.
  3. Be honest. Second chance lenders follow up on the information that you supply more thoroughly than regular banks. Even a slight exaggeration can end your chances of getting a loan.

All of these tips improve your chances of getting approved for a subprime car loan as well as lower the interest rate on that loan. It may be aggravating to seemingly jump through hoops to get a car loan, but when you pay one subprime loan off, you improve your chances of not needing a second.

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