subprime auto loan lenders
Is it harder to get a mortgage or an auto loan?
My husband is the breadwinner in the family (I am at home with our 4 young boys) and he had a bankruptcy back in 2003. Anyways, his credit is not the best however, in 2006 we obtained a mortgage after some struggles due to his credit.
My question now is, how hard will it be now to get an auto loan after getting a mortgage? We are in need of a new car, and I don’t know if I should even bother going to the local banks, or if I should go directly to a subprime lender. Any advice will be appreciated! Thank you….
2 years ago, it was easier to get a mortgage. Your husband would likely not be able to get a mortgage in today’s market without a huge amount down.
Today, it is much easier to get a car loan, but the interest rate will be much higher.
With bad credit, you could pay 20+ % on a car loan. If you had that kind of interest rate on a mortgage, you could never afford the payment, so they don’t even offer them.
The ability to get a car loan is going to depend on the combination of your debt to income ratio and your credit score.
I would avoid a subprime lender at all costs, if possible.
If you are forced to go this route, get something used that you can get around in until you can afford something new without paying an outrageous amount in interest.
With ok credit, anything below 8% is a good interest rate.
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