Having problems getting approved for a car loan due to bad credit? You certainly aren’t the only one. In fact, more than 25% of SC consumers have credit scores low enough to be classified as subprime, and we’re here to help. We work with a number of dealers and lenders in South Carolina, many of whom focus on helping people with bad credit. Just apply online, and we go to work getting you approved by a dealer or lender who’s ready to fund your loan. If you’ve got less-than-perfect credit, this is a great way to get financed.
Subprime Auto Finance Rates in South Carolina
Inflated interest rates are to be expected when you have a credit score of 620 or less. Actual interest rates vary widely based on a variety of factors, including your loan provider, credit rating, loan type, repayment term, and other factors. We’ve provided a few estimations based on our industry experience. These are not advertisements–merely estimates. The rate you’re offered could be significantly different.
| FICO | Used Vehicle APR | New Vehicle APR |
|---|---|---|
| 660-689 | 6.6% | 6.5% |
| 620-659 | 10.2% | 10.4% |
| 590-619 | 15.1% | 14.5% |
| 500-589 | 15.9% | 15.6% |
These rates seem high because they are indeed. That’s the reason you should offer a down payment and opt for shorter-term (24-48 month) financing. This will limit how much you end up having to pay in interest.
SC Approval Requirements
- Valid South Carolina drivers license.
- Monthly income of $1500 before taxes.
- Gainfully employed for no less than 12 months.
- Any bankruptcy discharged.
- No repossessions in last year.
SC Vehicle Requirements
Vehicle restrictions vary from company to company, but we’ve listed several of the common requirements here.
- New or pre-owned vehicles.
- Maximum of 75,000 miles on vehicle.
- Vehicle no greater than 6 years old.
- Minimum loan amount of $7500.
In addition, you might be required to buy your car or truck from a lender-approved dealer.
Do I Need a Down Payment?
Unfortunately, down payments are often a requirement when financing a car with bad credit. That’s because they lessen the risk to the lender. If the borrower defaults, they have a better chance of recovering their investment. As a buyer, you will pay less in total interest, simply because your loan will be smaller, and you’ll reduce your risk of negative equity on the loan as well. There are lenders who offer zero down car loans for people with credit problems. If your dealer or lender offers you this option, don’t plan to trade in the vehicle before you’ve paid back the loan. This could result in a negative equity situation.
The Impact on Your Credit
As long as you make the payments as agreed, a loan like this can boost your FICO rating. Payment history is a significant part of the FICO scoring model. When you make your payments as agreed, this establishes your creditworthiness. For this reason, you’ll want to finance a practical, economical vehicle. We recommend spending 10% of your income, at maximum, on your car payment. The average monthly income in South Carolina is $1,992, which means a payment of $199 monthly would be reasonable. Spending too much could lead to late payments, delinquency, even repossession.
