Credit Reports and Bad Credit Auto Loansby Steve Cypher on Wednesday, May 11th, 2011
Before applying for approved auto loans you should first review all three of your credit reports
How we know
Before applying for online car loans bad credit, it’s always a good idea to check each of your credit reports. But even if you don’t think you need to, you might want to read on.
Here at Auto Credit Express we’ve been involved with bad credit car sales for over two decades. During that time we’ve helped hundreds of buyers get financed while showing them how to avoid a tote the note dealer (outside our retail areas you can fill out an online auto loan application and get directed to the right dealer) while teaching them about terrible credit auto loans (to avoid repossession).
But to begin, you need to understand what a credit report actually is.
A credit report is basically a record of your loan and payment history. Banks, credit card companies and other institutions that extend credit usually report your payments to one, two or even all three major credit bureaus in the United States – Equifax, TransUnion and Experian. This credit is known as “applied for” credit. This means that you asked to borrow from the reporting lender.
Your credit report may also show “not applied for” credit entries. These are things such as bad checks, medical bills and any tax liens or civil judgments – bills that you owe that are not a result of a credit application.
The difference between them is if you pay all your bills on time, you won’t have “not applied for” entries in your credit reports.
Checking your credit reports
Viewing each of your credit reports will allow you to see if there is anything they contain that is incorrect. If there is, these mistakes can often lower your credit score. If you plan on buying a car, knowing what’s on your credit report as well as your FICO score can tell you whether or not you might qualify for a regular car loan or if you need to find a dealer that specializes in terrible credit car loans.
The dividing line for either type of loan is not always black and white but typically, if your FICO score falls below 640, you will need to apply for a bad credit auto loan.
Find the right car dealer
Once you’ve checked your credit report and credit scores and you’ve determined that you will probably need a bad credit car loan, the next step is to find a dealer that offers them, since not all do. The best place to do that is usually an online auto loans web site that deals with bad credit individuals.
At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. These dealers are knowledgeable and work with a large group of lenders to ensure your best chance at getting approved for a car loan.
So if you are serious about getting your car credit back on track, you can begin the process right now by filling out our online bad credit car loans application.