Bad Credit Auto Loans in Indiana (IN)

Wary of the impact of bad credit on your rate of interest? We can help! We can help you secure financing through our extensive network of Indiana lenders and dealers. Simply submit an application through our website, and we start finding you a dealer or lender wants to fund your loan. The process is quick and easy, and there are no obligations or hidden fees.

What Interest Rates Can You Expect?

There’s no denying it: lower FICO scores lead to high interest rates. Your specific rate will depend on a multitude of factors, including your loan provider, credit score, type of vehicle, loan term, and other factors. Here are a range of rates based on our industry experience.

FICO Used Vehicle APR New Vehicle APR
660-689 8.6% 6.5%
620-659 14% 10.6%
590-619 17% 14.3%
500-589 22.5% 17.9%

These are not quoted rates. Your own quoted rate could vary significantly, but these approximations should at least help you get into the right ballpark. If these rates seem steep, they really are. As a way to reduce the amount you end up having to pay in interest, you can offer a down payment and go with shortest financing term you can.

Minimum Approval Requirements for Indiana Consumers

  • Resident of Indiana.
  • Monthly income of $1500.
  • Gainfully employed for a minimum of 12 months.
  • Any bankruptcy discharged.
  • No repossession in the past 12 months.

What Kinds of Cars Can You Finance?

This varies from lender to lender, but we can offer a few requirements based on our industry experience.

  • Vehicles can be new or pre-owned.
  • Not more than 75,000 miles on vehicle.
  • Vehicle 6 years old or newer.
  • Minimum amount borrowed of $7500.

Many lenders want you to purchase your car or truck from a dealer with whom they have a relationship. If you’re approved through a dealer, then needless to say they will want you to purchase your car or truck through them.

Will I Have to Put Money Down?

Good question. Although we’d like to tell you otherwise, down payments are often a requirement when financing a car with bad credit. Fortunately, down payments have several benefits for the borrower:

  • Increased odds of being approved.
  • Size of loan is lowered.
  • Less paid in total interest.
  • Less chance of being upside down on the loan

Be that as it may, there are lenders who offer no money down car loans for people with less-than-perfect credit. However, you must keep your wits about you, as finance managers sometimes lump the down payment into the total amount you borrow. Although you don’t owe anything at signing, you’ll wind up paying more over the life of the loan.

Bolster That Bad Credit

An auto loan is actually one of the strongest ways to boost your FICO rating, but there’s a catch: you have to make your monthly payments in a timely manner. Plus, you won’t have to wait until you’ve repaid the note to enjoy this credit boost. Making your payments every month will do the trick. For this reason, it’s best to finance a practical, economical vehicle. We recommend spending 10% of your income, at most, on your car payment. People in Indiana, on average, make $2,041 per month. This means a payment of $204 a month would be appropriate. Of course, you must adapt these numbers to your own budget.