Bad Credit Bad Credit Auto Loans in Mississippi (MS)

Trying to finance a car, but your credit isn’t perfect? You certainly aren’t the only one. Mississippi actually has the lowest  average credit score in the nation:  622. That means the average resident of Mississippi has borderline bad credit, typically defined by a score of 620 or less. Fortunately, we specialize in serving people with credit problems. We have a vast network of dealers and lenders in Mississippi, many of whom can not only fund your loan, but they can help you rebuild your credit at the same time.

All you have to do is submit an application through our website, and our dealers and lenders compete with one another for your business, thereby increasing your odds of being approved. We’ll create an account for you in our approval hub, where you will be informed of your approval status within 24 hours.

Subprime Auto Loan Rates in Mississippi

It’s a fact of life: lower credit scores result in high interest rates. Individual interest rates vary widely based on many different factors, including your loan provider, credit rating, type of vehicle, repayment term, and other factors. However, we can give you a range of rates based on our experience in the industry.

FICO Used Vehicle APR New Vehicle APR
660-689 7.7% 7.2%
620-659 11.5% 12%
590-619 20.2% 19.1%
500-589 21.5% 19.9%

Yes, these rates are not cheap. As a way to decrease the amount you wind up paying in interest, you can offer a down payment and choose the shortest repayment term you can.

Minimum Criteria

  • Valid Mississippi drivers license.
  • Annual income of $18,000 (pre-tax).
  • Employed for no less than 12 months.
  • All bankruptcies discharged.
  • No repossession in the past year.

Vehicle Restrictions

This varies from lender to lender. However, we’ve listed a number of the common requirements here.

  • Vehicles can be new or used.
  • Fewer than 75,000 miles on vehicle.
  • Vehicle 6 years old or newer.
  • Minimum loan of $7500.

Many lenders want you to buy your vehicle from a dealer in their network.

What About Down Payments?

For buyers with low credit scores, down payments are often mandatory. Fortunately, down payments have several advantages:

  • Improved odds of approval.
  • Reduced loan amount.
  • Less interest paid in the long run.
  • Less likelihood of being under water on the loan

You might have seen no money down, “sign and drive” deals advertised in Mississippi. Unfortunately, it’s common practice for dealers to simply roll the down payment into the total loan amount. Sure, you may not provide a payment in advance, but you’ll pay for it in the end – with interest!

The Impact on Your Credit

Making payments on a car loan as agreed is an effective way to re-establish credit. Payment history is an important part of your FICO score. When you make your payments as agreed, this demonstrates your creditworthiness. For this reason, it is important to finance a reasonable, budget-friendly vehicle. We advise investing only 10% of your income in your car payment. This will help ensure that you can continue making payments, even if you run into some financial setbacks. To illustrate this, let’s consider the average numbers for consumers in Mississippi.

  • Monthly Income: $1,710
  • Total Vehicle Budget: $308
  • Suggested Payment: $171
  • Leftover Budget for Fuel, Maintenance, etc: $137

This is only an example, of course, but it should show you how to determine a sensible monthly payment.

What About Bankruptcy?

Many people have bad credit as a result of filing bankruptcy, which remains on your credit report for 7 years. Typically, your bankruptcy needs to be closed or discharged in order to finance a car. If you are on a payment plan, then you will need to obtain an authorization from your trustee giving you the ability to incur a new debt. If you chose liquidation, and your bankruptcy is closed, there is a good chance you can get approved.