Consumer Car Buying Advice Blog

According to a recent report by CNW research, subprime auto application approvals are down 11% this year. If you have bad credit, there are ways that you can increase your chances of approval.

Find a dealer that knows special finance

One of the biggest obstacles to getting approved is finding a car dealer that specializes in bad credit car loans. While many dealers advertise that they do these types of loans, many of them are buy here pay here or tote the note dealers. While these dealers may be able to finance you, they usually don’t report to the credit bureaus. This may solve your problem in the short term, but if your FICO score doesn’t improve, you’ll be in the same situation the next time you need a car loan.

Most of these buy here pay here used car lots are small businesses not affiliated with a new car franchise. Because of this, the inventory that they carry usually consists of older, high-mileage cars. These cars, due to both of these factors, are not as reliable and any warranty that they carry is usually very short, if they have any at all.

Larger new car dealers don’t always want to get involved with bad credit financing. Unlike new car prime financing,  subprime finance requires special training as well as the right kind of cars in inventory. Many dealers don’t have the time or the patience to fully staff and fund a special finance department.

Submit an application online

Fortunately, the internet has changed the way customers buy cars – with good credit as well as bad credit. Online web sites, such as www.autocreditexpress.com, match the needs of bad credit customers with a network of dealers that specialize in high risk car loans. These dealers use a wide spectrum of bad credit car lenders that report to the credit bureaus. A loan taken out through one of these dealers with one of their lenders gives the bad credit customer a number of advantages:

1.    You will be able to choose a vehicle from a much larger inventory.

2.    Because of stringent lender requirements, these vehicles are either new cars or newer used cars with lower miles.

3.    Most of these vehicles are eligible for service contracts that cover the entire term of the loan, thus avoiding potentially catastrophic repair bills.

4.    Since the lenders report to the credit bureaus, your timely payments will contribute to a better credit history and a higher FICO score.

Choose the web site carefully

At Auto Credit Express, we believe that an educated consumer is our best customer. We don’t make empty promises on our web site such as “100% approved” or “all applications accepted”. Or course all applications are accepted, but an “accepted” application is not the same as an “approved” application.

When you visit us on the web at www.autocreditexpress.com, you will be able to research the loan process using our FAQ page as well as our resource center. Feel free to use our calculators as well as the loan estimator worksheet to determine what your budget is for a car.

Once you are finished with your research, you can apply online in the comfort and privacy of your home using our secure car loan application. Once you have applied, you will be contacted by one of our affiliated dealers that specializes in bad credit car loans. Remember, here at Auto Credit Express, we want you “on the road” to better credit.

This entry was posted and is filed under Credit Repair, Fico Score. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.