There are many ways to repair your credit, including making car payments on time. Image from

There are many ways to repair your credit, including making car payments on time. Image from

Just as with any traditional loan, bad credit decreases your chances of qualifying for an online auto loan. However, Car Deal Expert strives to work with every customer. If there is a way to get you an affordable online auto loan, we will find it.

Bad credit also increases the interest rates you’ll be offered from lenders through Car Deal Expert. Unfortunately, there isn’t much we can do about that part. Interest rates are mostly based on a person’s credit report, so if you have bad credit, you’ll get a higher interest rate on a certain loan amount than someone with good credit.

How Car Deal Expert can help

While there isn’t much we can do about the way the world of credit works, we can try to help find you a loan with terms that are acceptable and affordable to you. For many people, it all comes down to whether they can realistically and easily afford the monthly payments.

If you secure a loan, it’s time to start repairing your credit. Once you accept a loan with monthly payments you can afford and make those payments on time, it will improve your credit. Of course, if you get in over your head, you will further damage  your credit. So be careful.

Other factors lenders consider

While your credit score has a profound effect on your interest rate, your lender will take other factors into consideration when deciding whether to give you a loan. For instance, your lender will want to know your monthly income. If you make more than $1,500 per month, you’re in good shape. In fact, if you have bad credit but you make a lot more than that per month, you have a good chance of getting a loan.

Lenders will also consider your job history and length of employment. Most lenders prefer clients who have held their current job for six months or more. The longer you’ve had your job, the more willing lenders will be to work with you.

Denied? Get a cosigner

If you are not approved for an online auto loan, don’t give up. Getting a cosigner can greatly help your chances of qualifying and securing an online auto loan. If you have a friend or relative with good credit who is willing to back you on your loan, you will likely be approved.

If your cosigner has good credit, a monthly income higher than $1,500 per month and a steady job, you’re almost a shoo-in for an online auto loan. However, be aware that if you make your payments late, it will negatively affect your cosigner’s credit as well as  your own.

Down the road

If you have bad credit, but you manage to find a loan that works for you, in a couple of years you should consider refinancing. If you make your payments on time consistently, your credit score will go up. After a while, your credit score could improve so much that you qualify for a lower interest rate on your auto loan.

So what should you do in the future when you realize your credit has improved and you can qualify for a lower interest rate? Come back to Car Deal Expert, of course! Just as we work with lenders who give loans for new and used vehicles, we work with lenders who do refinance loans.

Refinance loans

Refinancing is simple. Apply for a loan for the amount you owe on your vehicle. If you are approved for that amount at an interest rate lower than your current rate, you’d be crazy not to take it. Also, if you had a cosigner on your previous loan, you can get a loan in only your name, which will improve your credit score as well.

Pay off your car with your refinance loan, and start paying off your new loan instead. A lower interest rate can save you a lot of money. You can choose to leave your loan term the same and make lower monthly payments. If you are comfortable with your monthly payments, you can continue paying the same amount each month, but  your loan will get paid off faster.

Keep up with your payments, and your credit will keep improving.