: Borrowers with deep subprime scores (below 550) often face APRs exceeding 15% to 20% , compared to much lower rates for prime borrowers.

: Before visiting a dealership, seek pre-approval from local credit unions or online lenders. This gives you leverage to negotiate and helps you avoid dealer markups on interest rates. Choosing the Right Lender Different lenders cater to different credit profiles:

: Obtain free credit reports from the major bureaus to identify and dispute errors that might be unfairly dragging down your score.

: A trusted friend or family member with good credit can "backstop" the loan, significantly improving approval odds and lowering interest rates.

: High interest rates combined with a small down payment can lead to negative equity, where you owe more than the car is worth as it depreciates. Strategic Steps for Approval