Hoping to finance a car in Colorado, but your credit score isn’t as high as it could be? Don’t worry–we can help! We work with auto dealers and lenders throughout Colorado, and many of them have experience assisting “subprime” auto loan applicants. When you apply online, we’ll connect you with a finance specialist in your area who has the expertise to get you approved for auto loan you need, no matter your credit score.
Colorado Auto Loan Rates for Bad Credit
There’s no denying it: lower FICO scores lead to steeper loan rates. Individual interest rates vary widely based on a number of factors, including your loan provider, credit rating, vehicle type, loan term, and other criteria. Here are a range of rates based on our industry experience.
|FICO||Used Vehicle APR||New Vehicle APR|
To minimize your interest rate, offer a down payment of at least 10% and opt for the shortest lending term possible–shortest than 60 months is best.
Approval Requirements for Colorado Consumers
- Valid Colorado drivers license.
- Annual income of $18,000.
- Gainfully employed for no less than 1 year.
- All bankruptcies discharged.
- No repossessions in last year.
Down Payment Requirements
If you have a credit score of 680 or lower, you will typically have to provide a down payment of 10-20% of the vehicle’s purchase price. This can be a lot of cash to raise in a short period of time. Fortunately, cash is not the only option. There’s equity as well. Basically, if you have an existing vehicle–even if it’s not in great shape–you will typically receive a trade allowance from the dealer, which you can then turn around and apply toward your down payment. For example, a $15,000 car or truck typically requires a down payment of $1500 (10%)–there’s a very good chance that you trade-in is worth at least this much.
Can This Help Boost My Credit Score?
Yes, financing as a car can help you rebuild your credit, increasing your FICO score, provided that you make your payments as agreed. Typically, you’ll start seeing the positive impact on your score after 6-12 months of on-time payments. In order to reduce the risk of missed or late payments, be sure to finance a practical, affordably-priced vehicle with low monthly payments. We recommend spending 10% of your income, at maximum, on your car payment. As an example, let’s have a look at the average numbers for consumers in Colorado.
- Monthly Income: $2,587
- Total Vehicle Budget: $466
- Recommended Payment: $259
- Leftover Budget for Fuel, Maintenance, etc: $207
This is just an example, of course, but it shows you how to determine an affordable monthly payment.