Car loans can vary all over the place and the one thing that helps determine a used car loan rate in Chicago can be your credit score. There are some people that have good credit and some people have bad credit but knowing your credit score will help you land where you need to be at the car dealership.
Not all credit scores are treated equally, and new and used cars in Chicago Illinois don’t come easily and at times you can find yourself at the wrong car lot looking at cars that your credit won’t let you buy.
Being prepared is the #1 thing you can do. With a credit score, you can kind of plan for what the car dealership can do for you with an auto loan. The better your score the more you can get.
Credit scores for car loans in Chicago Illinois are like this and mostly across the USA.
- A 720 credit score or higher can get you 2-4% on a car loan.
- 500 to 600 is what a car dealership will call subprime and that will hike the interest rate to 10%-15%,
Looking for a used car with bad credit in Chicago Illinois
If you are looking at a car loan that’s over 10% interest you will want to do the following:
- Look at what you’re going to pay for the total amount of the used car.
- Look at improving your credit score to above 600.
- Shop around at other car dealerships.
- Look at just used cars in Chicago Illinois.
- Seek out a pre-approval at a credit union.
- Browse buy here pay here car dealerships in the Chicago area.
Buy here pay here car lots in Chicago aren’t a bad idea if you are just looking for a used car on the basis of just the price.
Some buy here pay here car dealers work with car buyers with low down payment offers for used cars in the Chicago area. While some car lots might ask for a down payment of $99 down for a used car in Chicago IL. You may be able to have a buy here pay here car lot offer you no money down auto financing in Chicago but that all can depend on how long you want to finance the used car for or if the interest makes sense for you.
A down payment of $500 is not unheard of either for used car payments in Chicago Illinois.
Really car dealerships don’t like to take a down payment of anything under $300 when you have bad credit or subprime credit.
What’s a decent down payment for a used car in Chicago Illinois?
If you really want to make a decent payment for a used car you’re most likely going to need a down payment of around $1000 for a low monthly payment on a used car.
Don’t know where to start with used car financing and has bad credit or low credit? Start without car loan form for a local Chicago area car dealership.