Bad Credit Auto Loans in Grand Rapids (MI)

Here at Wolverine Auto Finance, we pride ourselves on getting our Grand Rapids customers approved for financing with no fees, hassles, or obligations. Our loan-finding platform streamlines the process by leaps and bounds. Paper-based, in-person applications are a thing of the past. Simply apply online, and we’ll work to get you the Grand Rapids auto loan you need.

bad credit auto loan grand rapidsDo you have a FICO score of 620 or lower? That’s ok. Below-average credit is rarely an issue. If you just went from lender to lender, submitting applications, you’d probably be turned down more than once. With our process, you can apply from the privacy of your home or office, and we’ll find a lender in Grand Rapids who wants to get you in the driver’s seat, even if you’ve had credit problems over the years. Whereas a big-name bank may turn you away, we can get you approved by a dealer or lender that specializes in bad credit auto loans for Grand Rapids residents.

Minimizing Your Interest Rate

Of course, poor credit scores mean higher rates of interest, but that’s to be expected with any line of credit. Expect to pay 10-18% APR, depending on how low your credit score is. If you want to minimize your interest rate, you have a number of options:

  • Offer a down payment of 20%
  • Clear up any errors on your credit report
  • Take care of any existing collections accounts
  • Ask a spouse or trusted relative co-sign the loan

The chart that follows depicts various loan amounts, given a monthly income of $1,517, the average in Grand Rapids. These amounts are only approximations. You may be eligible for a greater or lesser amount, depending on other factors. Speak with your vehicle finance specialist for more information.

Credit Income Factor Amount Borrowed
Good Credit 10 $15,170
Fair Credit 9 $13,653
Temporary Bad Credit 8 $12,136
Poor Credit 7 $10,619
Really Bad Credit 6 $10,619

Keep in mind, these are merely estimations. For a detailed quote, please submit your application.

Down Payments – Necessary?

Down payments refer to payments made at the time that you purchase your new car or truck. They are often required of individuals who have a disappointing history of debt repayment. That’s because lenders are concerned with the Loan-to-Value Ratio (LTV). Divide the amount of the loan by the wholesale value of the vehicle being financed. This is the LTV.

Amount Financed Vehicle Value Loan-to-Value
$7500 $10,000 75%
$10,000 $15,000 67%
$12,000 $15,000 80%
$15,000 $17,500 86%
$15,000 $20,000 75%
$17,500 $22,000 79%
$20,000 $25,000 80%

Dealerships that finance bad credit often target an LTV of about 70%. The good news is that, as the automotive sector rebounds, more and more dealers and lenders will be approving car loans with zero down.

Submit your application. We’ll match you with a lender or dealer who can fund your loan, no down payment required.

Please note that most Grand Rapids buy here pay here dealerships consider down payments a requirement. Dealers like these work with consumers that can’t get approved by a traditional lender because of problematic credit. They approve people with problems like bankruptcy or repossession in the last year.

Grand Rapids Consumer Profile

Your credit score is only part of the picture. Creditors evaluate such things as:

  • Debt to Income Ratio
  • Stability
  • Credit History

Listed here are average stats for Grand Rapids residents.

  • Gross Salary: $1,517 Per Month
  • Average Monthly Payment: $167 (11% of Income)
  • Suggested Car Payment: $121 to $152 (8%-10% of Income)

If you have bad credit, you aren’t alone. This chart shows the estimated number of Grand Rapids residents at each credit level.

FICO Score % of Population Residents
300-499 2% 8,204
500-549 5% 20,511
550-599 8% 32,818
600-649 12% 49,226
650-699 15% 61,533
700-749 18% 73,840
750-799 27% 110,759
800-850 13% 53,329

Your FICO score will largely determine your interest rate, but provided that you have sufficient income, we can typically find a lender or dealer for you, even if you need a car loan in Grand Rapids for bad credit.