Bad Credit Auto Loans in Covington (LA)

Need a car loan? We can help. We’ve been in the automotive business for years, developing an extensive network of lenders and dealers who are standing by, ready to fund your loan. When you apply online, we will match you with a lending company given your location, finances, credit profile, and other factors.

Bad Credit Car Dealerships in Covington

Credit rating of 620 or less? That is generally considered subprime or poor credit, but our system is ideally-suited to consumers with below-average credit.

The truth is, we have dealers and lenders in our network who specialize in bad credit auto loans. Generally, lenders want borrowers with bad credit to earn a minimum of $1500 on a monthly basis. Fortunately, users get approved within minutes. And, keep in mind, making regular payments on a car loan can increase your credit scores. So let us find you a lender or dealer that funds loans for people with subprime credit.

Credit Rating and Loan Size

The table below shows how much you can borrow, based on a monthly income of $2,521, the average in Covington. These amounts are simply estimates. You may be entitled to more or less, depending on other factors. Talk to a vehicle finance agent to learn more.

Credit History Income Factor Loan Amount
Great Credit 10 $25,210
Fair Credit 9 $22,689
Subprime Credit 8 $20,168
Bad Credit 7 $17,647
Horrible Credit 6 $17,647

Just because it’s possible to borrow this amount, doesn’t mean you ought to. A smaller loan is advisable, because you’ll be able to pay it off more quickly.

Good credit? If so, you might not need to stress about a down payment. Customers with below-average credit, on the other hand, seldom have it that easy. At this stage, the Loan-to-Value ratio becomes one of the most important factors. Divide the the amount you want by the wholesale value of the vehicle. This is the LTV.

Loan Amount Vehicle Value Loan-to-Value
$7500 $10,000 75%
$10,000 $15,000 67%
$12,000 $15,000 80%
$15,000 $20,000 75%
$20,000 $25,000 80%

The lower the LTV, the lower the risk for the lender. The good news is that, as the auto industry recovers, more lenders and dealers should be able to offer car loans in Covington with zero down.

Apply online, and enter a zero in the down payment section. We’ll place your application with a dealer or lender who can fund your loan, zero down payment necessary.

Buy Here Pay Here Car Lots in Covington

If you’re thinking of working with one of the buy here pay here dealerships in Covington, owing to credit problems, bear in mind that a down payment will probably be required. These dealers finance consumers that wouldn’t be approved by a traditional lender. Of course, the annual percentage rates are inflated, but there are a lot fewer hurdles to credit acceptance.

Sadly, most of these dealers can’t help customers improve their credit. More often than not, it is better to apply online, so we can find you a car loan in Covington that has better rates and terms.

Covington Consumer Profile

Here are average stats for Covington residents.

  • Average Earnings: $30,257 Per Annum
  • Average Monthly Payment: $277 (11% of Income)
  • Suggested Car Payment: $202 to $252 (8%-10% of Income)

Covington Population by Credit Score

Ever wondered about the credit ratings of your community as a whole? We have estimated how many Covington residents are in each range of FICO scores.

FICO Score % of Population Residents
300-499 2% 692
500-549 5% 1,729
550-599 8% 2,767
600-649 12% 4,150
650-699 15% 5,188
700-749 18% 6,226
750-799 27% 9,338
800-850 13% 4,496

When you are ready, we can help you get the Covington bad credit auto loan you need. Click here to submit your application.