Consumer Car Buying Advice Blog

If you need to finance your next vehicle with a bad credit car loan you should give yourself enough time to correct any mistakes that might be contained in your credit reports

If you need auto loans for bad credit

Car loans with bad credit web sites such as www.autocreditexpress.com have helped thousands of applicants with bad credit reestablish their auto credit. You can begin the process simply by filling out the online bad credit auto loan application. By avoiding a tote the note dealer and qualifying for a second chance auto loan at one of our affiliate dealers you will not only be able to reestablish your car credit, you should be able to raise your credit scores at the same time. The reason for this is that these loans originate with lenders that report your payment history to the credit bureaus.

But you need to educate yourself about the bad credit car loan process. A car that’s too expensive can stretch your budget and may result in repossession. If this happens, the only remaining choice for most bad credit buyers is a tote the note car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since even most bad credit lenders will only consider applicants with a repossession on their credit report that’s more than a year old.

Credit report

Your credit report is simply a record of your borrowing and payment history. Banks, credit card companies and many other places that extend you credit report your payment history to one, two or all three of the major credit reporting agencies which in the United States include Equifax, TransUnion and Experian. This type of credit is known as “applied for” credit (meaning that you requested to borrow money from the reporting lender).

Your credit report may also contain “not applied for” credit entries. These entries are not a result of a credit application and may include items such as bad checks, medical bills and any tax liens or civil judgments. If you pay all your bills on time, you will not have any of these “not applied for” entries listed in your credit report.

Why you should see your credit reports

Viewing each of your credit reports will let you know if there is anything they contain is incorrect. If there is, much of this erroneous information can lower your credit score. If you plan on buying a car, knowing your FICO score and credit history will tell you whether or not you qualify for a regular car loan or if you need to find a dealer that specializes in bad credit car loans.

When to order your credit report

In addition to looking at your credit report and paying to see your credit score at least once a year, before you begin looking for a car, you should first take some time to prepare to buy that new car. This includes ordering a copy of your credit report from each of the three credit bureaus. Dorothy Guzek, a credit counselor with GreenPath Debt Solutions in Farmington Hills, Michigan, suggest that you pay for your score and pull your three credit reports at least six months before you begin shopping for a car. “This will allow you ample time to correct any incorrect information that you might find.”

Something for nothing

There may be no such thing as a free lunch, but in this case there actually is a way that you can get a credit report from each of the credit bureaus at no cost to you. Back in 1970, Congress passed the Fair Credit Reporting Act that, among other things, ensured that consumers would have access to the information in their credit files. The law was amended in 1996 and in 2003 a new law (the Fair and Accurate Credit Transactions Act or FACTA) amended the act to require credit bureaus to furnish consumers with one credit report per year per company – as well as access to their FICO scores for a reasonable fee (the scores aren’t part of the free package).

How to order your credit reports

There are three ways to receive your report. You can call the toll-free numbers of the 3 credit bureaus, you can write a letter to each of the three bureaus, or you can go to this website: www.annualcreditreport.com. On the site, you will be asked to furnish information that establishes your identity. Once you have done this, you can view and download the report immediately.

Additional services

A number of companies, including the web site freescore360.com, will, for a fee, furnish you with a credit report from each of the bureaus plus a credit score from each. Credit monitoring services are also available that will help you guard against identity theft.

For more information on these services, as well as information regarding bad credit auto loans, please visit our web site.

How Auto Credit Express can help

Once you’ve ordered, viewed and made any corrections to your credit report, you should request a final copy from all three bureaus and pay for at least one credit score. If you find that you fall into the bad credit car loan category (which is usually considered to be a FICO score below 640), the people here at Auto Credit Express can help you find a dealer that can arrange car financing.

At Auto Credit Express we have helped thousands of people with bad credit buy cars and reestablish their auto credit at the same time through our nationwide network of affiliate dealers that specialize in bad credit car 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: Bad Credit, car credit, credit, credit history, credit report, credit score, equifax, experian, fico, FICO score, identity theft, repossession, tote the note, transunion

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