The credit crunch coverage in the media has convinced people that banks are not lending for auto loans, home loans, or personal loans. This is very over blown. The lenders that are still in business continue to lend. They may have changed their lending guidelines, but they are still lending.

For many people looking for an auto loan, a credit score of 600 does not give the same options that it used to. If you have negative equity on your trade-in, you will probably need to cover a large portion of the negative equity with down payment. A very low credit score of 400-575 range means you will likely need some down payment just to use a loan approval. If you have negative equity and a very low credit score, you will need to cover all of your negative equity in down payment PLUS put some down towards the new vehicle. The exact amount of down needed will depend on your loan approval and the exact vehicle you buy.

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Tags: auto, auto financing, auto lenders, auto loan, auto loans, bad credit, banks, Credit, credit crisis, credit score, Down Payment, lenders, loan, loans, low credit score, Negative Equity, trade-in

This entry was posted on Tuesday, March 10th, 2009 at 1:58 PM and is filed under auto financing, auto lenders, bad credit, bad credit auto loans, upside down trade-in. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.