Worst Bad Credit Lender Rates

Worst Bad Credit Lender Rates

Rates for customers with challenges / bad credit vary a lot. Some banks are simply predatory. Credit Unions typically are not, they have a community charter. Nevertheless, we’re still astonished how much the Credit Union rates can vary and compiled a list of the worst bad credit lender below.

Worst Bad Credit Lender and Their Rates

The list below shows the California’s 58 counties and the worst rates a dealer could potentially sell you if you were to buy a car and didn’t pay attention to which lender the dealer chooses on your behalf:

Alameda County 21.49% CEFCU
Alpine County 13.79% Golden 1 CU
Amador County 13.79% Golden 1 CU
Butte County 13.79% Golden 1 CU
Calaveras County 13.79% Golden 1 CU
Colusa County 13.79% Golden 1 CU
Contra Costa County 21.49% CEFCU
Del Norte County 13.79% Golden 1 CU
El Dorado County 13.79% Golden 1 CU
Fresno County 15.99% United Local CU
Glenn County 13.79% Golden 1 CU
Humboldt County 13.79% Golden 1 CU
Imperial County 13.79% Golden 1 CU
Inyo County 13.79% Golden 1 CU
Kern County 22.00% Chevron Valley CU
Kings County 17.49% FAST CU
Lake County 13.79% Golden 1 CU
Lassen County 13.79% Golden 1 CU
Los Angeles County 18.00% UME Federal CU
Madera County 21.95% Valley Oak CU
Marin County 18.74% My CU
Mariposa County 17.99% Mocse CU
Mendocino County 14.70% Community First CU
Merced County 17.99% Mocse CU
Modoc County 13.79% Golden 1 CU
Mono County 13.79% Golden 1 CU
Monterey County 25.33% Monterey CU
Napa County 18.74% My CU
Nevada County 13.79% Golden 1 CU
Orange County 13.79% Golden 1 CU
Placer County 13.79% Golden 1 CU
Plumas County 13.79% Golden 1 CU
Riverside County 13.79% Golden 1 CU
Sacramento County 13.79% Golden 1 CU
San Benito County 25.33% Monterey CU
San Bernardino County 13.79% Golden 1 CU
San Diego County 13.79% Golden 1 CU
San Francisco County 18.74% My CU
San Joaquin County 17.00% Premier Community CU
San Luis Obispo County 25.33% Monterey CU
San Mateo County 18.74% My CU
Santa Barbara County 16.99% SESLOC Federal CU
Santa Clara County 25.33% Monterey CU
Santa Cruz County 25.33% Monterey CU
Shasta County 13.79% Golden 1 CU
Sierra County 13.79% Golden 1 CU
Siskiyou County 13.79% Golden 1 CU
Solano County 18.74% My CU
Sonoma County 18.74% My CU
Stanislaus County 17.99% Mocse CU
Sutter County 13.79% Golden 1 CU
Tehama County 13.79% Golden 1 CU
Trinity County 13.79% Golden 1 CU
Tulare County 21.95% Valley Oak CU
Tuolumne County 17.99% Mocse CU
Ventura County 16.84% Coast Hills CU
Yolo County 13.79% Golden 1 CU
Yuba County 13.79% Golden 1 CU

As repeatedly mentioned, we strongly advise to never get your car loan at a dealership.

Why are Some of the Rates so Incredibly Bad?

Banks as well as Credit Unions are in the business of lending money.You borrow from them a principal, pay interest over the course of time and eventually return the principal – makes sense, right? Looking at the rates above, you could be asking yourself: why are some of the rates so incredibly bad?

Lenders have a portfolio of clients and hence loans. The credit profile of the individual client determines the creditworthiness and the risk of default from the lender’s perspective. If the risk of a client is high, the lender will demand a higher interest rate. If the client has excellent credit and has always made payments in the past, his rate will be low.

The lender’s goal is to gather a balanced portfolio of good, medium and bad credit customers. If a lender managed to generate a lot of loans from bad credit customers, the bank may be less interested in lending to a bad credit customer. The lender may deliberately choose to be the worst bad credit lender for a given period of time. In that case, the bank may pro-actively raise the rates for bad credit loans in an attempt to make the loans less attractive for bad credit customers.

In parallel, the same lender may reduce the rates for good and medium credit customers to fill the overall loan portfolio with the missing credit profiles.

In sum, every lender should in fact be offering the same rates: after all, money is the ultimate commodity. We’ve seen that the community focus as well as the lender’s policies to balance the loan portfolio pushed rates up and down, which explains why some of the rates for the worst bad credit lender look so incredibly bad on first sight.

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