Consumer Car Buying Advice Blog

Consumers with low credit scores will always have a more difficult time obtaining a bad credit car loan than buyers with excellent credit but there are a number of ways that they can improve their chances.

We deal with bad credit every day

At Auto Credit Express we’ve spent close to 20 years dealing with consumers who have bad credit and helping these same customers raise their FICO scores and reestablish their car credit by financing a vehicle with a bad credit auto loan. We also offer to educate our applicants on the loan process, since a bad decision can trap them in a loan they can’t afford with a car that is sure to break down – which is a recipe for failure.

As with anything else, the key to a successful bad credit car loan is focusing on the basics while being realistic about the bad credit situation they find themselves in.

Interest rates

Bad credit auto loan consumers considering any credit auto loans need to deal with the reality that the interest rates on these kinds of loans will be high. Although each loan situation is different, interest rates can range from 10% to 20% or more. Lenders charge these higher rates because they are taking on more risk. Even if you search the internet in order to compare rates, you are going to have to learn to deal with the reality of a high interest rate for your current auto loan.

Avoid bait and switch scams

There are a number of online scams that target bad credit consumers desperate for an auto loan. In these instances, follow the Consumers Golden Rule: if it sounds too good to be true, then it is. Legitimate online sites will treat you with dignity and explain the process. They will also not guarantee that they can get you financed. The best of these web sites, like Auto Credit Express, will also have a toll-free number listed that you can call if you have additional questions or concerns.

Be realistic

If you have bad credit, don’t expect a lender to approve a $25,000 loan with only a $250 monthly payment. Not only doesn’t this happen, it just can’t be done and if someone or some company tells you differently, they’re only using you to obtain your personal information, not help you get financed for any credit auto loans.

You also won’t qualify for any type of subvented interest rate – such as the 0% or 2.9% rates the manufacturers advertise on TV or the internet – these rates are reserved only for customers with the highest credit scores.

Also, you should be prepared to finance a compact or midsize car. Save your dream car for that time when your credit is fully restored. In addition, be prepared to put as much money down as possible. In the current economy, zero down loans for any credit auto loans are a thing of the past – there are too many customers and too few available loans to make this kind of loan possible. Lenders are also being more careful and are requiring more equity for bad credit auto loans.

As we see it

Lenders who offer any credit auto loans will be more likely to approve your application if you are more realistic in your expectations and if you understand the need for loan equity in the form of a down payment or real vehicle equity in your trade in.

For nearly 20 years, Auto Credit Express has been helping people with credit problems get approved for new and used car loans. Our dealer affiliates work with a broad spectrum of bad credit auto loan lenders to get you approved. Since our inception, we have processed over 1,000,000 online bad credit auto loans and closed over 1 Billion dollars in auto loans.

For more information, please visit www.autocreditexpress.com to see what we can do for you.

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