If you’ve got bad credit, no credit history or a bankruptcy in the past, RoadLoans can help you get an auto loan. It has higher rates than Bank of America, but it provides loans to people who have bad credit, something many other lenders don’t do.
RoadLoans was one of the least transparent lenders in posting its rates. It discloses them in third-party advertisements but not on its own website. Its advertised rates varied widely, with 1.99% for a new car and 7.5% for a used car. That 7.5% may look high, but it’s not out of the ordinary, especially if you have less-than-stellar credit.
Other factors, such as your income, the state you live in and the car you plan on buying, can influence your interest rate. RoadLoans’ loan terms range from 12 months to 84 months.
We recommend checking your credit before applying for a loan – that will give you a clearer idea of what rates you’re eligible for. RoadLoans has a variety of calculators to help you estimate your monthly payments as well as how much of a loan you can afford.
RoadLoans restricts the cars you can buy with a loan to those nine years old or newer or with 120,000 or fewer miles on the odometer. These limits are about average for lenders that restrict the types of cars you can use a loan for.
You complete your application online and should receive a decision about preapproval within one business day. To apply, you need to provide your driver’s license and proof of insurance. RoadLoans also requires a monthly income of at least $1,800 to qualify. Once you’re approved, you print off the necessary documents and take them to the dealer or seller you plan to purchase a car from.
You can also refinance an existing loan to get a lower rate or change the term. The process is similar to applying for a standard auto loan.
There are no prepayment penalties or origination fees at RoadLoans. Also, you can set up automatic payments to avoid making late payments, which can further negatively affect your credit.