How to Calculate Online Car Loans With a Bad Credit History

Many people need cars to get to and from work and school, regardless of their credit score. Being a savvy car buyer can help you save money by having an idea of how much your monthly payments will be based upon your potential interest rate, down payment and/or trade-in value of your vehicle. Fortunately, there are online resources where you can calculate possible car loans based upon your credit score and history.

Instructions

1

Research the type of car you're looking to purchase. Being approved for a car loan may have requirements such as a maximum number of mileage, year of the car and price. Know ahead of time what car you are interested in purchasing. You can go to sites like Edmunds.com and Autotrader.com to research prices of the vehicle you are interested in.

2

Determine the value of your trade-in or the down payment you will be paying, if any. Check Kelley Blue Book online (in the Resources section) to determine the value of your trade in or have an idea of how much you plan to put down. You can put a down payment of 10 percent to 30 percent down, though each bank will have its own requirements.

3

Locate an online auto loan calculator. Bankrate.com has calculators that range from mortgages to auto loans. They also provide information and resources on various banks and lenders in your area with up-to-date information on their current rates for comparison. On Bankrate.com, click on "auto loan lenders" and input your city and state to compare rates. From there you will be able to click on "calculator" to input specific information to determine your approximate monthly car note.

4

Know your credit score. A credit score of 680 or above is considered prime, and will allow you to get a lower interest rate. However a score of 680 or below is considered subprime, so expect to pay more in interest. You can obtain your credit score by going to Experian.com, Equifax.com and TransUnion.com.

5

Input an example interest rate based upon your credit score. If your credit score is subprime, expect to pay as little as 10 percent to 20 percent interest (sometimes more depending on the approving bank). Within your auto loan calculator you can put an example interest rate of 15 percent to 17 percent to get a median interest rate.

6

Determine how long you will like to have your car loan. You can have repayment terms as low as 24 months and as high as 60 months. Know ahead of time how soon you would like you pay your car off.

7

Click on "Calculate" and you will have a potential car note amount. You are welcome to change the numbers around as you see fit to ensure you are getting a loan amount that is comfortable for you.