Home of Henry Ford and the Ford Motor Company, Dearborn is a bastion of the automotive industry, and we are proud to help its residents get approved for financing. The advantages of our service are myriad:
- One application, multiple lending companies
- Real-time decisions for most borrowers
- Bad or no credit seldom a major issue
The actual application is entirely web-based, and many borrowers get a loan right away. It couldn’t be easier!
Special Finance is a large part of our business. We have lenders and dealers who help people with credit scores of 620 and less, and they would love to grant you the loan you need. Yes, bad credit scores mean higher rates of interest, so it’s imperative that you opt for a cost-effective vehicle with affordable monthly payments. To budget properly, we recommend following these two guidelines:
- Budget just 10% of your monthly income toward your car payment. For Dearborn residents, this works out to an average of $260.
- Don’t overextend your financing term. It is best to opt for the shortest term you can, while still affording a solid car. The sooner you pay off the loan, the less you’ll pay in interest.
If you follow these guidelines, you can remain in a financial “sweet spot,” minimizing any risk of delinquent payments that would only worsen your score. By keeping your payments current, you will slowly but steadily improve that bad credit rating, leading to lower interest rates in the future, insurance premiums, and easier approvals for all kinds of credit. Don’t delay. Let us find you a dealer who finances bad credit in Dearborn or the surrounding area.
Estimating Your Loan Amount
How much will you be able to borrow? That will be dictated by how much established income you have, together with your credit tier. This chart shows loan amounts for people of a variety of credit scores, based on an income of $2,598 a month, the average in Dearborn. Please be aware that these are only estimations. As you can see, you won’t be able to borrow quite as much with a bad credit car loan in Dearborn. However, this is actually a good thing, as a smaller loan will be less of a strain on your income, enabling you to make all of your payments on time, as agreed – and improve your credit in the process.
|Credit Rating||Income Factor||Amount|
|Temporary Bad Credit||8||$20,784|
|Really Bad Credit||6||$18,186|
As we stated previously, the numbers above are estimates. For a definitive quote, please submit your application.
The Importance of Loan-to-Value Ratio (LTV)
Do you have a credit score of 700 or better? Then you probably won’t have to provide a down payment. But if your credit is less than perfect, your dealer may require you to supply a payment in advance. At this point, the Loan-to-Value ratio becomes a critical factor. This is the amount of the loan versus the wholesale value of the vehicle.
|Amount Borrowed||Vehicle Value||LTV|
The credit crunch had a massive influence on LTV’s for borrowers with credit problems, but it is back up to around 70%. With that being said, there are dealers who offer financing with no money down. Just enter your down payment amount when you submit your application, and our platform can often find you a lender or dealer who wants to fund your Dearborn car loan, regardless of whether or not you have a down payment.
Buy Here Pay Here Financing in Dearborn – Worth it?
In Dearborn, “buy here pay here” is how most people refer to in-house financing, a type of lending arrangement in which the dealer serves as the lender. As you probably know, most dealerships have Finance & Insurance office which simply arranges loans through banks, credit unions, and finance companies with whom they have an affiliation. “BHPH” car lots do have several advantages:
- No Credit Check
- Few Requirements
- Same-Day Approval
However, this type of financing has an array of drawbacks:
- Inflated Rates of Interest
- High Down Payment Amounts
- No Opportunity to Improve Credit
In general, we recommend that buyers with bad credit opt for financing through a service like us, as we have subprime lenders and bad credit car dealers in Dearborn who offer more reasonable rates, better service, and the ability to improve your credit through repayment.
Credit and Income: Dearborn
There is more to the approval process than just your credit score. Loan companies check your income, employment history, and history of credit.
Listed below are some average stats for residents of Dearborn.
- Average Salary: $2,598 Per Month
- Average Monthly Payment: $286 (11% of Income)
- Suggested Monthly Payment: $208 to $260 (8%-10% of Income)
Curious about the credit ratings of your neighbors? We’ve estimated how many Dearborn residents are in each credit tier.
|FICO Score||% of Population||Residents|
Not where you want to be in terms of credit? Don’t worry, we can help nearly any consumer who has an income of $1500 per month or more, no matter what their credit score is.