When a person decides to use bad credit car financing they tend to expect their credit to influence their interest rates, but what about state usury laws? Taking the time to consider where you live and the usury laws that are in placed can help you better prepare for the loan process.
It is important to know while qualifying for poor credit financing that usury in handled very different in each state, and in some cases there are even special exceptions present.
Understanding State Usury Laws
State usury laws can be found in each of the 50 states across the U.S. and are legal regulations of how much interest an car finance company can apply to consumers. At this current time these laws have no barring on private lenders, which is why most lenders who specialize in poor credit car loans can offer slightly escalated rates.
Consumers can also find that some of these regulations also have particular exceptions in each one that help outline special circumstances when rates are raised or lowered. The Washington State Department of Financial Institutions lists some of these exceptions which include:
- Consumer Leasing: Some state usury laws don't apply when a person extends a lease over 4 months that also exceeds value of $25,000.
- Credit Card Debts: Usury laws do not regulate retail installment debts which are commonly associated with credit cards.
- Favored Lender Status: In some instances major subprime auto financing companies can surpass the interest limit, due to it being a national bank.
Receive Good Rates with Bad Credit Financing
By having state usury laws in place it actually makes it easier to qualify for loans and finance cars with low credit ratings. This is largely because most lenders don't want to face the wrath of the federal courts, and with special auto finance loans becoming more popular and profitable this is the best time to get a loan. So just because some dealerships may not approve all financing, you can still count on us to help you get a car loan with bad credit.
Here at AutoNet Financial we help provide auto financing for people with bad credit. We also work with local car loan places and in house financing dealers to find the best auto financing that accept people with problem credit.
