Consumer Car Buying Advice Blog

What you need to know about bad credit and getting preapproved for a zero credit auto loan

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If you have absolutely no credit, you probably want to know your chances of getting preapproved for a zero credit auto loan. We’ve seen this before, because at Auto Credit Express we’ve been working with poor credit car buyers at the retail level for more than twenty years.

Having heard how many of these bad credit buyers get treated at dealerships that don’t offer second chance auto loans, we launched a web site with a secure bad credit auto loan application. Applicants are then matched with dealers in their area that, like us, specialize in a broad range of customer credit issues.

The alternative for these credit-challenged buyers usually means picking out a car at a tote the note car dealer, something that won’t help their credit since these dealers usually won’t notify the credit bureaus about a loan or loan payments. Taking out this kind of a loan also increases the chance of repossession.

This means that if you’ve had a bankruptcy, slow pay, repossession or other bad credit issues, these dealers can give you the opportunity to drive a quality vehicle and reestablish your credit at the same time; which leads us into today’s topic, how to get preapproved for a zero credit auto loan and where to find the right kind of dealer to reestablish your auto credit.

Zero credit auto loan preapprovals

One thing we won’t do here at Auto Credit Express is trick consumers into filling out an application by telling them half truths – which means that if you read something on another auto finance web site that sounds too good to be true, it probably is.

Here is a verbatim excerpt from a recent web article:

“Regardless of your credit history, you can get approved for a low interest auto loan…. Comparing lenders will help you find the best rates.”

Whoever wrote this has either never been involved in special finance or if they have; they’re certainly out to dupe some poor consumer into believing it in order to get their credit information.

Here are the hard facts:

1.    If your credit score is low, there is no way you’ll get approved anywhere for a low interest auto loan.
2.    If your credit history is really bad, you may not get approved for any kind of auto loan – at least not without a big down payment – and maybe not even then.
3.    It’s very difficult to compare bad credit auto loan lenders. Most only do indirect lending through car dealers, so you won’t be able to compare interest rates unless you visit a dealer that specializes in auto loans for bad credit. Even then, it is the finance manager that will choose the lender, after comparing the terms of the various credit decisions (provided there is more than one approval).

The Bottom Line

As a bad credit auto loan customer, you need to know how the process works in order to decide where and how to reestablishing your auto credit. Most bad credit and zero credit auto loan preapproval sites are just come-ons, and don’t represent a legitimate offer of credit based on your credit score and credit history.

Here at Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. Our affiliate dealers are knowledgeable and work with a wide range of lenders to ensure you have the best chance at getting approved for a car loan.

So if you are serious about getting your credit back on track, you can begin a new chapter in your life by filling out our bad credit car loan application now.

Tags: auto loan preapproval, Bad Credit, loan preapproval, zero credit

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