Consumer Car Buying Advice Blog

Consumers with bad credit need to know what online resources are available to them and what to expect if they hope to successfully apply for a bad credit car loan.

Our business

As a BBB-accredited business, at Auto Credit Express we’ve spent the last 20 years working with consumers who have bad credit and helping many of them raise their FICO scores and reestablish their car credit by filling out our online bad credit car loan application and financing a vehicle with a bad credit auto loan. Along the way, we try to provide our applicants with the information needed in order to make an educated decision on how to approach the credit rebuilding process, since a poor decision can trap them in a loan they can’t afford which could result in actually lowering their credit scores even further.

One of the keys to a successful bad credit car loan is understanding how the bad credit process differs from traditional car loan methods. So today we’ll begin by listing the different types of lenders and how someone with bad credit can apply for a loan with them.

Lender types

There are two basic types of lenders: direct lenders and indirect lenders.

Direct Lenders

Direct lenders are banks, credit unions and finance companies that lend money directly to the customer. Once approved for a loan from a direct lender, you can shop for a car like a cash buyer. It also means that you don’t have to worry about whether or not the dealer can get you financed. Many direct lenders maintain a web site where you can directly apply for a car loan and receive an almost immediate response.

The downside to direct lenders is that most have stricter underwriting guidelines. This means that they don’t do a very good job of approving applicants with bad credit. Although a few bad credit lenders have had web sites where credit-challenged consumers could apply for a loan online, most of those lenders have left the market.

Indirect Lenders

Most direct lenders will also offer indirect lending through automobile dealers. Under this program, the lender will often offer the dealership slightly better “buy rates” than they offer their direct customers. The dealer can then choose to offer the customer this rate, or mark it up in order to earn additional profit. It should be noted, however, that most of these direct/indirect lenders as well as the lending programs that feature these mark ups deal with prime customers, not bad credit lending.

For credit-challenged consumers, though, indirect lending institutions are also the most common type of lender when it comes to dealing with consumers with poor credit. But since these lenders only work through car dealers and the lenders don’t advertise which dealers they do business with and the dealers don’t list which lenders they’re signed up with, finding a dealer that can get you financed is often a hit-or-miss process.

Bad credit car loan web sites

Not to be confused with lender web sites, bad credit car loan web sites such as Auto Credit Express offer credit-challenged consumers an easy way to find a dealer that caters to, or has a department that specializes in, bad credit car loans.

By filling out a bad credit car loan application on our site, consumers can forgo driving around town searching for a dealer that can help them and possibly avoid the potential embarrassment of getting turned down for a loan.

At Auto Credit Express, our business is the subprime car market. We have helped literally thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. Out web site will help you determine how much car you can afford and unlike other sites, our toll free number is listed on every page, in case you have any additional questions. When you decide to buy a car, our online bad credit loan application can be filled out in the comfort and security of your own home.

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

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