Auto Loans in Frederick (MD)

Frederick-MDSearching for a car in Frederick? It can be a stressful process, without a doubt. There are down payments to consider, as well as interest rates and financing terms. Fortunately, we’re here to direct you from application to approval. The advantages of our platform are numerous:

  • Apply just once, and put your application in front of multiple lenders
  • Instantaneous acceptance for most borrowers
  • Weak credit rarely a concern

Submit your application, and we’ll match you with a finance company given your location, your income, your down payment, and other factors. Go here to apply online.

Bad Credit Car Loans, Frederick

Poor credit? No problem. We make it easier to apply online and get pre-approved for a Frederick auto loan with bad credit. There are three individual credit tiers considered subprime:

  • Tier 3/C: 580-660
  • Tier 4/D: 520-580
  • Tier 5/F: 250-520

No matter your score, we have lenders that want to give you a second chance at financing. Generally, lenders require individuals with bad credit to provide a down payment. Down payments refer to payments made the day you sign for your new car or truck. They are frequently required of borrowers with a poor history of debt repayment. At this stage, the Loan-to-Value ratio becomes important. Divide the amount borrowed by the wholesale value of the car or truck in question. This is the LTV.

Amount Financed Vehicle Value LTV
$7500 $10,000 75%
$10,000 $15,000 67%
$15,000 $20,000 75%
$17,500 $22,000 79%
$20,000 $25,000 80%
$20,000 $30,000 67%

Most lenders and dealers who work with bad credit prefer LTV ratios of less than 100%. Because the lender doesn’t have as much invested in the vehicle, they are in a stronger position to recoup their losses if the vehicle has to be repossessed – a bona fide risk when financing subprime borrowers. The good thing is, as the economy improves, more dealers and lenders should be able to approve car loans with no down payment. Just enter your down payment amount on your application, and we will probably help you find a dealer or lender who wants to get you in the driver’s seat, regardless of whether or not you have a down payment.

No Credit Check Car Lots in Frederick

If you are thinking of working with one of the buy here pay here car lots in Frederick, due to credit problems, then bear in mind that they will most likely require you to provide a hefty down payment. These dealers make credit decisions on site, rather than outsourcing this to banks or lenders. The loan rates are especially steep, but they often offer guaranteed approval. As you may know, making regular payments on a car loan will increase your credit ratings, but most this is not the case when working with most BHPH lots. That’s because these dealers aren’t in the habit of working with the credit reporting agencies to keep your payment status up-to-date. If you want to rebuild your credit, let us find you a dealer who finances bad credit and reports payments to the appropriate authorities.

What Size Loan Am I Eligible Borrow?

Estimating how much you can borrow is pretty easy. Just multiply your monthly income by the income factor that corresponds to the state of your credit. We’ve included one such example, based on the average income of Frederick residents, $3,228.

Credit Income Factor Amount
Great Credit 10 $32,280
Average Credit 9 $29,052
Temporary Bad Credit 8 $25,824
Poor Credit 7 $22,596
Very Bad Credit 6 $22,596

To find out your own loan amount, multiply your monthly income by the corresponding income factor.

Frederick Consumer Profile

Frederick is one of the nation’s leading centers of biomedical research, home to both Fort Detrick and Riverside Research Park. It also a desirable location for commuters to Bethesda and even DC. Given factors like these, the average income in Frederick is quite high, as compared to the national average, but so are housing costs.

Below are some average statistics for residents of Frederick.

  • Pre-Tax Salary: $38,739 Annually
  • Average Car Payment: $355 (11% of Income)
  • Suggested Car Payment: $258 to $323 (8%-10% of Income)

Poor credit. It’s pretty common nowadays in Frederick and across the state of Maryland. The chart below shows the estimated number of Frederick residents at each credit level.

FICO Score % of Population Residents
300-499 2% 1,872
500-549 5% 4,679
550-599 8% 7,486
600-649 12% 11,230
650-699 15% 14,037
700-749 18% 16,844
750-799 27% 25,267
800-850 13% 12,165

When you are ready, we can help you get the Frederick bad credit car loan you need. It’s easy to apply online.