Auto Loan with Bad credit question?

[LNP]

I want to purchase a new car (around 17,000) I need a loan. I have a horrible credit score of around 540. Does anyone know of a place that would give me a loan and not pay a lot in interest. Thank you.

[HEYWOOD JABLOME]

not possible,wait or come up with big down payment

[RICHARD]

Since your credit score is 540, my advice to you is to please (I beg you) don't if you have not done so. Instead see if you could raise about three thousand dollars (or even slightly less). If you live in the U.S. as I have assumed, then there are many reputable car dealers you could visit to purchase used cars, for now.In the interim, apply for a credit card from Orchard Bank. (I can vouch for the company as I have a credit card account with them.). The company is listed on the web. They probably will not give you more than $300 credit limit with an interest rate of say (not more than 11%) because of your very low score. Nevermind, take it - and start using the credit card responsibly, not exceeding your credit limit and paying off the bill each month before the due date. Try not to use more than 25% of your credit limit. (Please, don’t apply for credit until after 18 months of opening a credit card account.) After 18 months of successfully managing your credit account, you would be happy to find out that your credit score would be very good. This would then place you in a much better position to buy the car of your dream with a very good interest rate of not more than 6%.On the other hand, taking a car loan of $17,000 could sink you in the long run with your present credit score. Even if your credit score goes up on account of paying your car note on time, the APR will certainly not (except you refinance, which, of course, will take longer to pay-off, although with a lower APR). At the moment, it is doubtful if you would get an APR of less than 22%. By the time the car is financed, this could bring the total finance to about $30,000 for the duration of 5 years (60 months). It would be lower if you were able to put down about $5,000.Overall, you now see what I am trying to explain. In summary, a credit card if used responsibly after 18-24 months without opening any more accounts during the said period, could raise your score significantly (around 660 or slightly more). Although car note if paid on time would raise your credit score, you could be trapped with a very high APR for 5 or 6 years. It would then be like paying double because of your present credit score. Be wise! I am speaking from experience.I hope the above information is useful.Best wishes!RICHARD