Bad Credit Auto Loans in Traverse City (MI)

Would you like to get pre-approved for financing? You’ve come to the right place. We work with lenders and dealers in Traverse City and across Michigan who want to approve your credit – today! The actual application is a snap, and many consumers get a loan within a day.

Subprime financing is our primary focus. There are three subprime credit tiers:

  • Tier 3/C: 580-660
  • Tier 4/D: 520-580
  • Tier 5/F: 250-520

Regardless of what tier you are in, we have lenders that want to finance your loan. A down payment, as well as income verification will typically be required, but most people who apply through us are approved nearly instantly. Allow us to find you a lender or dealer who finances bad credit.

Financing Pre-Approval: How Much?

The chart that follows shows multiple loan amounts, derived from a monthly income of $1,819, the average in Traverse City. These amounts are just estimations. You may qualify for a different amount. Speak with your vehicle finance specialist for more information.

Credit Income Factor Amount Borrowed
Good Credit 10 $18,190
Average Credit 9 $16,371
Subprime Credit 8 $14,552
Poor Credit 7 $12,733
Horrible Credit 6 $12,733

Just because you’re able to borrow this amount, doesn’t mean you ought to. A smaller loan is recommended, because it will lower the risk of being delinquent with payments.

No Down Payment?

Down payments can be made in cash or via trade-in, and typically cover anything from 5-20% of the vehicle’s price. They tend to be required of consumers who have a substandard history of debt repayment. At this stage, the Loan-to-Value ratio becomes one of the most important factors. This is the amount you borrow versus the wholesale value of the vehicle.

Loan Amount Vehicle Value Loan-to-Value
$15,000 $20,000 75%

The lenders who finance people with credit problems generally favor lower LTV’s, because these offer less risk. The good thing is, as the auto market recovers, more and more lenders and dealers should be able to offer auto loans with no money down.

Our approval platform can often find you a dealer, bank, or lending company who wants to get you in the driver’s seat, regardless of whether or not you have a down payment.

In House Financing Car Dealers in Traverse City

Ever seen dealerships in Traverse City that advertise buy here pay here services? These dealerships make credit decisions on-site, rather than relying on banks or finance companies. The interest rates are steep, but they typically offer guaranteed approval.

Traverse City Consumer Profile

There is more to the approval process than just your FICO score. Loan companies evaluate your ability to pay (income), history of employment and residence, and history of repayment.

Here are some average statistics for residents of Traverse City.

  • Gross Income: $1,819 Per Month
  • Average Monthly Payment: $200 (11% of Income)
  • Suggested Monthly Payment: $146 to $182 (8%-10% of Income)

Next we have divided up Traverse City’s population by credit score. These are just estimates, but they should give you a sense of where you stand.

FICO Score % of Population Residents
300-499 2% 1,277
500-549 5% 3,193
550-599 8% 5,108
600-649 12% 7,663
650-699 15% 9,578
700-749 18% 11,494
750-799 27% 17,241
800-850 13% 8,301

Why not get started on your Traverse City auto loan? It’s easy to apply online.