Illinois Bad Credit Auto Loans (IL)

Anxious about the impact your credit will have on your interest rate? You aren’t alone. More than 25% of US consumers have credit scores of 620 or less. Fortunately, we’re here to help. We can help you secure financing through our vast network of Illinois lenders and dealers.

When you apply online, our dealers and lenders compete for your business, thereby increasing your odds of being approved. There are zero fees or obligations, and you could be approved within 24 hours!

Subprime Auto Loan Rates in Illinois

It goes without saying: lower credit ratings mean higher interest rates. Your actual interest rate will depend on a variety of factors, including your lender, credit rating, type of loan, financing term, and other factors. However, we can give you a few estimates based on our industry experience.

FICO Used Vehicle APR New Vehicle APR
660-689 8.4% 7.7%
620-659 13.4% 10.8%
590-619 18.1% 15%
500-589 20.9% 16.8%

Like we said: not cheap. Fortunately, there is a lot you can do to reduce the total interest you pay on the loan. Firstly, avoid a lengthy financing term like 5 or 6 years. The longer it takes to repay the loan, the more you’ll pay in interest. Second of all, offer a down payment. Not only will this decrease how much you have to borrow, it will help to minimize negative equity.

If you wish to pay less in total interest, consider the following:

  • Choose 3-4 year financing. The shorter your loan, the less you’ll pay in interest.
  • Offer a down payment. A down payment will help reduce the size of your loan, and therefore the amount of interest you pay on it.

Approval Criteria

  • Resident of Illinois.
  • Weekly income of $375 (pre-tax).
  • Gainfully employed for a minimum of 1 year.
  • All bankruptcies discharged.
  • No repossessions in the past year.

What Kind of Vehicle Can I Purchase?

Vehicle restrictions vary from dealer to dealer. However, we’ve listed several of the common requirements below.

  • New or used vehicles.
  • No more than 75,000 miles on vehicle.
  • Vehicle 6 years old or newer.
  • Minimum loan amount of $7500.

Many finance companies also require that you buy your vehicle from a dealership in their network. If you’re approved through a dealer, then of course they will want you to buy your vehicle through them.

Down Payment Requirements

For buyers with poor credit, down payments are likely to be mandatory.

That’s because they reduce the risk for the loan provider. If the borrower defaults, they have a better chance of recouping their investment. For you, the buyer, there are benefits too. You will owe less in total interest, simply because the loan will be smaller, and you won’t be quite as vulnerable to negative equity, which means owing more on your car or truck than you could sell it for.

Having said that, there are lenders who offer no money down car loans for people with less-than-perfect credit. Unfortunately, it’s common practice for a dealer to simply roll the down payment into the total amount borrowed. Sure, you might not owe anything upfront, but you’ll find yourself paying more over the life of the loan.

Credit Restoration Through Financing

Paying off an auto loan as agreed is a good way to re-establish credit. It shows banks and lenders that you’re becoming a responsible borrower, which means lower loan rates on future lines of credit. Missing or delayed payments, in contrast, can really damage your credit. So you want a monthly payment you can easily afford, not one that costs you an arm and a leg.

We recommend investing only 10% of your income in your car payment. People in Illinois, on average, earn $2,448 monthly. This means a payment of $245 monthly would be reasonable. Of course, you need to adapt these numbers to your own budget.