20/3/8 Rule, Calculator, and Bad Credit Car Loans

Getting a Car Loan with Bad Credit? Here’s What You Need to Know

If you’re looking for Bad Credit Car Loans, you’re not alone. Many people face challenges when financing a car due to less-than-perfect credit. However, it’s important to make sure you’re not taking on more debt than you can handle. Use our auto loan calculator to determine your monthly payments and see if you’re following the 20/3/8 rule:

• 20% Down Payment: Aim to put at least 20% down to reduce your loan amount.
• 3-Year Loan Term: Try to pay off your car in 3 years or less to avoid excessive interest.
• 8% of Gross Income: Keep your monthly car payment at or below 8% of your gross income.

By following these guidelines, you can avoid overextending yourself and ensure that your car loan fits comfortably within your budget.