What is a good company for a car loan?
I want to get a car loan but the problem is that I don't have good credit. My current credit score is 575 since the last time I checked on creditkarma but I also see that I don't have credit history. My car is a 95 honda accord and I already have invested alot of money on this car and right now the transmission is slipping and engine knocking so Its time for a newer car but since I don't have good credit or maybe have no credit at all but yea I just want to know what's a good car loan company with poor or no credit history and how this company's work.
A credit score of 575 is very poor and won't qualify you for a conventional car loan. Some dealers work with "subprime" finance companies that might approve you but you'll certainly pay a very high interest rate and be expected to make a substantial down payment.
In the worst case, you'll have to use a "buy-here-pay-here" car dealer who doesn't care about your credit. However, be aware that they sell overpriced junky cars at super-high interest rates. Furthermore, they put you on a very strict payment plan and if you are late with a payment, they remotely disable the car. There have been national news reports recently where they disabled someone's car as it was driving down a freeway -- very dangerous. So if this is the ONLY way you have for getting a car, just know what you're getting yourself in to.
Go to a credit union and ask what they would loan you given your history. They may also tell you what you can do to increase your credit score. If they will pre-approve you for an amount, then you can go car shopping and avoid the dealers' high interest rates. Some credit unions will even lower your rate after a period of time that you have made payments on time. Note that a dealer might get you a credit union loan but they add a mark-up on the rate; so the best bet is to deal directly with the CU.
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