| It is a common story for people with bad credit: the | | | | when it comes to car loans, many people with low |
| sad story of having to put up with ridiculously high | | | | credit scores end up with deals that have much higher |
| interest rates. A borrower with a bad credit score | | | | interest rates than what should have been required. |
| gives the lender an impression of unreliability. Thus, to | | | | Often, this is due to borrowersâ lack of |
| compensate for the risk of incurring a bad debt | | | | awareness of the business. Most go to the dealer |
| expense, the lender issues a higher interest rate. In a | | | | unprepared, asking what car loans they could apply for |
| sense, a higher interest rate is somewhat like a minor | | | | without a clue of what the current rates are on |
| punishment for slacking off on oneâs payment | | | | different car loans. Even worse, they donât |
| obligations. | | | | even know their own credit scores. As a result, they |
| Car loans follow the same rule. People with bad credit | | | | end up taking the dealerâs offers as |
| will no doubt get a higher interest rate. Unfortunately, | | | | âgospel truthâ. |