High Risk Sounds…Well. Risky
A high risk loan is offered to people who have not taken the proper care of their credit. The higher your credit score, the better rates you will be offered. Those who have low and below the limit credit score can still find financing, but it will often be a high risk loan.
A high risk car loan may actually help you to raise your credit numbers. By paying the loan back in a timely manner, you are showing the reporting credit bureaus that you have taken positive steps to repair your credit.
High risk car loan officers will often take your situation into consideration. There may be unfair reportages on your credit report and it can take some time to get the facts straight and clean the record. If you are looking for a high risk auto loan and you can show the loan officer proof of your regular payment on a past auto loan, you may get a better rate than you had expected.
Situations that May Influence Your Rates
A big plus in your favor can be if you own your home, have a stock portfolio, any other type of real estate or assets that could be deemed valuable that you can offer as collateral. Sometimes if your collateral is equal or more in value than the new car purchase, you can get better rates than someone who has nothing to offer.
Comparing High Risk Car Loans to No Risk Loans
A person that goes onto a new car lot armed with golden credit rating is the one who can make the best deal and get the lowest rates available that day. A person that goes into that very same lot, yet has a credit rating no higher than a shin, will be offered a loan with stricter limits, higher interest rates and certain restrictions.
Find Out if You Qualify for a High Risk Car Loan
If you are considered high risk it is in your best interests to do as much research as possible in order to find the least restrictions and limitations as well as a fair loan rate. You can sign up with a number of sites that offer high risk car loans, but you must read the fine print to be sure you will not be paying any unexpected charges later on.
You can find sites that will offer you your credit score so that you can have that information at hand when the dealer runs your credit numbers through the hoops. If you have access to your credit score and you know it is 600, no one will be able to tell you it is a dismal 520 instead. You will have the proof in your hand, so when you find the car you want to spend some of your life with, you can negotiate a fair price with a high risk auto loan you got at another institution.