Consumer Car Buying Advice Blog

Even if you do have bad credit and you are stuck having to get a bad credit car loan there are a number of things you can do to increase your chances of getting approved and maximizing the money you spend every month.

Bad credit consumers

At Auto Credit Express we’ve spent the last 20 years working with consumers who have bad credit and helping these individuals raise their credit scores and reestablish their car credit by 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 a repossession that could lower their FICO scores even further.

As with anything else, the key to successfully rebuilding your credit means focusing on the basics. In this case, it means taking the necessary steps to insure that you have the best chance possible for obtaining a loan approval as well as making smart decisions when it comes to your bad credit car loan.

Apply online

While this may sound self-serving, many of us at Auto Credit Express have talked to customers who visited a local dealer and were turned down for a car loan. In most cases, this was due to the fact that the dealer just didn’t want to get involved with bad credit customers. A special finance department requires a lot of time and effort as well as the right kind of new and used inventory that many dealers aren’t willing to commit to.

When you Fill out our bad credit car loan application at Auto Credit Express, we will assign it to our nearest affiliate dealer. These are dealers that specialize in bad credit financing and take the time to study your application.

Be accurate

You may find that the bad credit car loan application at autocreditexpress.com is longer and more thorough than anything you have filled out before. There’s a reason for this: the more information that the dealer initially has, the better they can match you to one of their lenders – so that you get the best deal possible. It’s important to be totally honest and upfront with all your information – especially since bad credit car lenders usually verify this information for themselves.

Once the dealer receives your application, they will be contacting you to go over the information and possibly ask you some additional questions. The special finance manager does this to get the “rest of the story” from you. Many times applicants may have had medical problems, family health issues or other events that led to their current credit problems. Knowing these issues will help the finance manager explain your situation to the bank.

Gather up your supporting documents

In addition to checking on the accuracy of your application, most subprime lenders will require that you furnish them with documentation proving your income and residence. These so-called “stipulations” can include utility bills, phone bills and paycheck stubs or W-2 forms. It’s a good idea to have all this information available and ready to bring with you. If you are claiming child support or disability income, it will probably be necessary to have the court order or the award letter to prove the income.

Have reasonable expectations

A bad credit car loan is designed to repair your credit, not get you your dream car. Although a minivan isn’t an SUV, usually it’s a less expensive alternative and gets better gas mileage. A smaller sedan is even more affordable and will keep your monthly payments and fuel costs low.

Remember, the object here is to keep your monthly payments as low as possible and to keep the loan term as short as possible in order to cut down on interest expenses. Put as much money down on the loan as you can afford and try and avoid trading in a car that you are “upside down” in.

Consider only certain extras

While many dealer “adds” are a waste of money, you also will want to make sure that you’ll be able to pay for any unanticipated repair bills. Often, it makes financial sense to buy an extended service contract to cover these unexpected bills. If you are taking out a loan longer than 48 months with little or no down payment, GAP insurance is also a good idea, since you will be in a negative equity situation for much of the loan period.

Get it in writing

Finally, you need to realize that the dealer is acting as an agent for the lender. If something you agreed upon is not in the contract or written on the buyers order, than it doesn’t exist. Since there is no cooling off period for a car loan, once the papers are signed, the deal is final.

Take the time to read over all paperwork before you sign the loan contract to make sure it matches the terms that you agreed to and always get a copy of everything that you signed before leaving the dealership.

As we see it

By taking the necessary steps, you can help insure that you have the best possible chance for a loan approval as well as successfully completing your bad credit car loan.

At Auto Credit Express 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. When you decide to buy a car, our online bad credit car 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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