Bad Car Credit History Loans

Getting a car loan with a history of bad credit is more common than you may think. The type of car loan you end up with, however, depends on the items listed in your bad credit history.

For example, if a majority of your bad credit history is from non-applied for credit items, the car loan you receive will most likely be at better interest rates and terms than people with a bad credit history from applied for credit items.

Non Applied For Credit History

Sometimes items show up on your credit history that are not credit items at all, they are bills that went unpaid, or other amounts owed, that ended up at a collection agency. Common non-applied for items include:

• Bad Checks
• Medical Bills
• Utility Bills
• Civil Judgments
• Tax Liens

It is true that these bad credit history items will lower your credit score. Rarely, however, will they prevent you from getting a car loan.

Applied for Credit History

Items on your credit history that you applied for show up regardless of your payment history. In other words, they can raise or lower your score (Non-applied for items can only lower you score. If you pay your bills on time, non-applied for items never show up on your credit report.)

Most applied for credit history items will not prevent you from getting a car loan, especially if they happened a while ago and are now resolved. There is, however, one bad credit history item that would result in most lenders declining your credit application: If you’ve had a recent car loan repossession, and the car loan was not included in a bankruptcy, it is nearly impossible to get auto financing through a sub prime lender.

If your bureau report does not includes a repossession outside of bankruptcy and you meet the minimum car loan qualifications you should be able to get a bad credit history car loan.