Consumer Car Buying Advice Blog

If you have bad credit and you need car loans with bad credit you should know that there is one thing that can make the difference between a denial and an approval for a bad credit car loan

What you should know before applying

If you’re reading this, there’s a good chance that you have bad credit and you need a car. The good news is that you’ve come to the right place. Through our bad credit auto loan web site at www.autocreditexpress.com we have helped thousands of applicants just like you reestablish their auto credit. You can begin the process simply by filling out our online car loans with bad credit loan application. What we offer can help you because unlike tote the note dealers, our second chance auto loans originate with lenders that report this payment history to the credit bureaus, which can result in either raising or lowering a credit score, depending upon how you pay on the loan.

But if you’ve never done this before, you need to be careful. A car that’s too expensive can stretch your budget and result in repossession. If this happens, the only remaining choice for most auto loans for bad credit buyers is a Tote the Note, We Finance Everyone car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders who originate bad credit car loans will only consider applicants with a repossession that’s more than a year old.

Why you should want a down payment

The key to successfully completing a bad credit car loan is to focus on the basics. In this case, it means being aware of the requirement of most subprime lenders that you come up with a down payment in the form of cash or real equity in your trade in.

Credit-challenged consumers often look upon the down payment as a roadblock in the way of their car loan. The reality in this case is that most subprime lenders look upon the down payment as a way to increase the customer’s commitment to repay the loan. After all, with little or no money invested in a car, especially at the beginning, it would be much easier for a customer to walk away from a bad credit car loan than if they had invested $5,000 in a down payment.

And while car loans with bad credit lenders don’t usually require this kind of equity from the customer, most of them will insist that you come into a loan with at least a 10% down payment or $1,000, whichever is less. But rather than look upon this as a necessary evil, as a customer with bad credit you should look at it in a positive way considering that, when you buy a car, especially with a bad credit car loan, a down payment can help in a number of ways:

•   It will lower your monthly payment – When you put money down, you reduce your monthly car payment. The larger your down payment, the lower your monthly payment.
•    It can reduce the length of the loan term – By increasing the down payment, you can reduce the term of the loan instead of lowering your monthly payment. By shortening the loan term, you reduce the “window” of time in which the car is worth less than the loan payoff – commonly known as “negative equity.”
•    Either way, a down payment will reduce the amount of interest that you’ll pay – which is especially critical when you consider the higher interest rates that are charged by lenders that offer auto loans for bad credit.

As we see it

The same results apply whether you have a regular car loan or a bad credit car loan. If you are buying a car, a down payment helps reduce your interest expenses and will allow you to trade out of your loan sooner since you will have more equity in the vehicle to begin with.

At Auto Credit Express we have helped thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans. Since our inception, we have processed over 1 million online bad credit auto loans and our dealers have closed over $2 billion in auto loans.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.

Tags: auto credit, Bad Credit, car credit, credit, credit bureau, credit score, down payment, repossession, tote the note, we finance everyone

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