Have you been rejected by a bank or dealer for an auto loan? You simply need to find a subprime vehicle finance company. We have relationships with a huge selection of dealers and lenders in Maryland, many of whom focus on helping people with bad credit. When you apply online, we get you approved by a lender based on your location, your income, and your FICO score. For people with problematic FICO scores, this is a great way to get financed.
Subprime Auto Loan Rates in Maryland
There’s no denying it: lower credit ratings result in steeper annual percentage rates. Actual interest rates vary widely based on a multitude of factors, including your loan provider, credit score, loan type, loan term, and other factors. Here are a range of rates based on our experience in the industry.
|FICO||Used Vehicle APR||New Vehicle APR|
Yes, these rates are high. To decrease the amount you end up having to pay in interest, you can offer a down payment and select the shortest repayment term possible.
- Valid Maryland drivers license.
- Weekly income of $375 (pre-tax).
- Employed for no less than 12 months.
- Any bankruptcy discharged.
- No repossessions in last year.
What Kind of Vehicle Can I Purchase?
This varies from company to company, but we’ve listed a few of the common requirements below.
- New or used vehicles.
- Mileage of 75,000 miles or less.
- Vehicle 6 years old or newer.
- Minimum loan amount of $7500.
Many lenders want you to buy your vehicle from a dealer with whom they have a relationship. If you’re approved through a dealership, then needless to say they will want you to buy your car or truck through them.
Do I Need a Down Payment?
Although we’d like to tell you otherwise, down payments are often a requirement when financing a car with less-than-perfect credit. The good news is, down payments have several benefits:
- Increased chances of approval.
- Less money borrowed.
- Less paid in overall interest.
- Less risk of being upside down on the loan
That being said, there are lenders who offer no down payment car loans for people with less-than-perfect credit. Keep in mind, finance managers sometimes roll the down payment into the total amount borrowed. In that way, you might not have to offer any money upfront, but you’ll spend the money in the long run – with interest!
Will This Help My Credit?
It’s true, a car loan will rebuild your credit – as long as you pay it off as agreed. And you don’t have to wait until you’ve fully paid off the vehicle to benefit from this credit boost. Making your payments month after month will have the intended effect. Of course, the opposite is also true. If you miss payments or are late on them, you could easily worsen your already-weakened credit score.
To keep your payments low, commit 10% of your income to your monthly payment, no more. The average monthly income in Maryland is $2,979, which would equal a payment of $298 per month. Of course, you must scale this formula to your own income.
Dealing with Bankruptcy?
If you’ve filed for bankruptcy in the past, that doesn’t necessarily mean you can’t get a loan. If the bankruptcy has been discharged, we have lenders who will consider your application. If the bankruptcy is still open, you may need special documentation from your trustee; namely, an Authorization to Incur Debt.