If you are looking to buy a car and need to take out loan for your purchase, you probably have considered taking out a loan from your local bank or from the car dealer. These two sources of financing work out well for many people, especially those with good credit, but sometimes a bank or car dealer won’t give you a good loan unless you have perfect credit. Don’t let that stop you from getting a new vehicle.
If a car dealer or a bank won’t give you a car loan at a decent interest rate, consider taking out a loan from a peer-to-peer lending service, such as Lending Club or Prosper Marketplace. These companies operate peer-to-peer lending marketplaces that allow borrowers, including those looking for car loans, to take out loans from individual investors. The loan process through these marketplaces essentially bypass banks, allowing savers to get better interest rates and borrowers to get better interest rates on their loans.
The loans that you can take out on peer-to-peer lending marketplaces come with a one year, three year or five year term. All loans offered by Lending Club and Prosper are fully-amortizing fixed rate loans with interest rates ranging between 6% and 20% depending upon your credit score. In some situations you’re better off getting a loan from a bank or credit union, but if you’re in a situation where that won’t work, consider taking out a loan from a peer-to-peer lender.
You can also shop for loans from more traditional finance companies online. Just because your bank won’t give you a good loan, doesn’t mean another bank won’t. There are lots of places that will shop your loan around for you and get you the best possible deal, even if you’re in a bad credit car finance situation. One of these resources is Car Finance 247, which will help you get a loan even if you don’t have perfect credit.
