Car Loan With Bad Credit – Should You Consider Personal Loan Over Car Loan?

Last Updated on June 2, 2021

Are you suffering from a Car Loan With Bad Credit?

Of course, everyone does who had taken a loan. It happens because to fulfil our dreams or to complete some projects we need instant money.

But how? What are the ways to grab instant money? The clear answer is by taking a loan from the lender. The lenders may be any Bank or housing fund corporation. Suppose we desire to have a car.

But you know a bad credit loan score will ruin everything if you have a poor credit score earlier. But Bad credit score only happens if you have taken an earlier loan and have not paid EMI on time. Based on that or some other points consider, your credit score calculated.

But Listen? If you are going to plan a new car by lending a loan, it is impossible for now. There will make a few reasons. Either you had already taken a Car Loan or any other loan. Now that loan comes on a Bad Credit score. Auto loan bad credit instant approval is not possible at all.

Car Loan With Bad Credit
Car Loan With Bad Credit

So now what? Below is our article we have tried out to give your question query in simple words. Below check the first car loan EMI calculator, then go after a lender to take a loan.

What Is Called Car Finance?

Car finance refers to various financial instruments that enable a person to obtain a loan, such as leasing and car loans. However, car finance is one of the most accessible types of loans to get.

What Is a Car Loan Calculator?

If you are looking to purchase a new or used vehicle, it is essential to know how much you can afford to spend on a car. To get an accurate estimate of how much you should borrow for a car loan, you should use a car loan calculator.

We have a list of top financial houses where you can ask for a loan if you want to try an online free car loan EMI calculator.

List Of Free Online Car Loan Interest Rate Calculator

Check them out below list:

  1. HDFC Car Loan Calculator
  2. Axis Bank Car Loan calculator
  3. ICICI Bank Car Loan Calculator
  4. Car Loan Calculator
  5. SBI Bank Car Loan Calculator

These calculators are accessible online and give you an idea of what you can afford based on several factors. These factors include the car price, interest rate, monthly payments, and credit score.
They can be accommodating in deciding which car you should purchase, as well as helping you decide if you should refinance, sell, or keep your current car.

What Is SBI Car Loan Rate Of Interest?

We have taken an SBI car loan last December 2020 and very happy about their interest rates and tenure.
It considers SBI car loan because the State Bank of India offers car loans to its customers with tenure of up to 7 years and interest rates ranging between 7.70% and 10.50%.

Car Loan With Bad Credit
Car Loan With Bad Credit

Key Features of SBI Car Loan

  • Competitive EMI and car loan interest rates as compared to other lenders
  • Repayment tenure of 7 years
  • Provides financing on the On-Road price
  • Interest is computed based on Daily Reducing Balance (Worth considering)
  • No Advance EMI
  • Optional Life Insurance Cover from SBI

SBI Car Loan Charges

ChargesSBI Car Loan Scheme
Processing feeNew Car: 0.20% of the loan amount plus GST. Maximum of Rs.5,000 plus GST.
Certified Pre-Owned Cars: 0.50% of the loan amount plus GST. Maximum of Rs.10,000 plus GST.
FinancingUp to 90% of the car’s ‘On-Road Price’ may be provided

SBI Car Loan Eligibility

To be eligible for a State bank of India New or Used Car Loan, applicants must have adhered to the below-mentioned car loan eligibility criteria:

  • Applicant/individual must be aged between 21 years and 67 years.
  • The applicant must be either a Central/State Government employee
  • A professional or self-employed individual
  • Individual who is engaged in agricultural and any associated activities

Download SBI Car Loan App

Click the above link to download the SBI car loan app from the play store: Download From Play Store.

Is It Good Idea For Personal Loan over Car Loan for Car Purchase?

When shopping for a new car, it can be tempting to take out a personal loan to purchase the car.

However, when you think about the long term cost of ownership, the maintenance costs, and the additional money you can save by simply borrowing money and using your vehicle trade-in instead of a loan, it makes more sense to apply your car trade-in for your next personal loan.

Personal loans are very high-interest loans with high-interest rates and come with extremely high monthly payments that only help the people who can pay the most money to borrow them afford the cars they want.

Many people who have had bad credit in the past find that they have to resort to taking out personal loans to get a car because the only vehicles available to them are usually too expensive for them to afford.

Car Loan With Bad Credit
Car Loan With Bad Credit

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What To Do If You Have Car Loan With Bad Credit?

If you have had a history of bad credit or decided to purchase a car with poor credit, it is a good idea to get a personal loan. Although it may be difficult, you can get a decent interest rate on these loans because the lender knows that you have no other options.

The higher risk of lending money to people with poor credit ratings means that the lender has to charge a higher interest rate to make up for that risk.

You will end up paying more in the end if you use a personal loan to purchase a car, but if you do so with a decent interest rate, you will be able to pay off the car fairly quickly.

It allows you to save money in the long run, which is essential if you try to save money to make ends meet.

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What To Consider Before Taking a Personal Loan?

When you shop around for your loan, take note of all the different interest rate quotes you offer. Where can you find the best possible deal, regardless of your credit history?

Personal loans are usually quite flexible, and there is typically a good amount of negotiation room available to the lender.

Since there is such competition between lenders, they are usually willing to offer competitive interest rates and terms. You have to know what to say and how much to say to get the best possible deal.

Car Loan With Bad Credit
Car Loan With Bad Credit

FAQ – Frequently Asked Questions

  1. Can I get a car loan with a 500 credit score?

    Ans. Yes, It is possible, but it will cost you high.

  2. Can I get a car loan with a 350 credit score?

    Ans. A 350 credit score will make it difficult to qualify for a loan or credit.

  3. Can you get a car loan with a 450 credit score?

    Ans. Getting an auto or car loan with a credit score of between 400 and 450.

  4. What is the fastest way to build credit?

    Ans. Pay bills on time.
    Ask for higher credit limits.
    Dispute credit report errors.
    Use a secured credit card.
    Keep credit cards open.
    Pay Emi’s On Time

  5. Can you get a car with a 570 credit score?

    Ans. Yes, Buying a new car with a credit score of 570 is possible. But You have to pay an extremely high interest rate.

Final Words: Car Loan With Bad Credit

After using the car loan calculator correctly, you should first answer some questions about your situation.

  1. When do you intend to purchase the vehicle?
  2. What is the estimated price per month when you apply for a loan?
  3. How many months are you willing to finance this car?

If you plan on making a down payment or Trade-In, subtract this amount from the price of the car to calculate the total loan amount.

When you have all of these numbers, you will be ready to begin answering your questions. You should also look at your credit rating to see if you need to increase your credit score to qualify for a lower interest rate.

If you do not, you may want to consider refinancing since you can often negotiate a lower interest rate than you would with a low credit score.

Vikas Rana

Alsomindy review portal (Product reviews, Exclusive Coupons, Deals & Offers) run by Vikas Rana. He is Hotelier by Profession and a Digital marketer by Passion. Being a Hotelier he has always loved to learn the inner working of hospitality and reviews from various sources received. He is a wizard that can make your shopping experience easy with unbiased reviews and a better selection of products.

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