past due, it will make it almost impossible to get a prime loan.TIP: If you have any type of loans—or even collection accounts—
Even subprime loans with interest rates below 10 percent will be tougher.Again: Check your credit bureaus and try to take care of anything late
before shopping—at least know what you’re up against. There are onlinelenders who will do subprime preapprovals, I have some listed on the
Resourcesgoing shopping. Subprime shoppers are much more vulnerable to rate page. I strongly advise getting a preapproval from one before
markups and manipulation by dealers.
better. TIP: The more money you can put down on a “spi-fi” loan the^
That’s both from the standpoint of qualifying in the first place and also froman interest rate perspective. Many banks and credit unions will still lend to
you if your credit scores are in the mid-600s; if you’re below 599, you’llusually have to go to a “sub-subprime” lender like Westlake Financial
Services—or have a very strong cosigner. If you’re in this category, expectan interest rate ranging from 12 percent to 21 percent, and also expect that (^)
the bank will charge an “origination fee.” This isn’t disclosed in many cases—in fact, some state laws prevent the dealer from mentioning it—but it
must be absorbed somehow into the loan structure. These fees run from