Question by Kyle A:
What would be considered a bad interest rate on a used car loan?
I am a recent college grad with poor credit and I desperately need a new car.
Last month I accepted a full-time job that pays 45K/year, so I can now afford payments up to $ 900 a month but I’m not sure if I will be able to get financed or at what interest rate.
Assuming I wanted a $ 20,000 loan over 36 months with my poor credit (530 credit score), what would you expect the interest rate to be?
8%? 10%? 15%?
Any advice would be appreciated!!!!
Best answer:
Answer by Lissa
If you score is 530 then, you won’t be able to get a loan at a fair APR. It will most likely be over 15%, maybe over 18%. You’ll need a co-signer to lower it.
Any APR below 10% is good.
GOOD LUCK!!! Remember to always make your payments on time. Any late payments over 60 days, they can repo your car and ruin your credit. And it will take up to 7 years to clean it up. So, always stay on top of it. That and your registration and insurance. No insurance means they can repo your car.
If you can, save some money for awhile and put a decent down payment. It will also help lower your rate.
Good Luck!
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