Consumer Car Buying Advice Blog

Prior to applying for a loan for a bad credit car first find out what is in your credit reports

Where to begin

Even before filling out the credit application for bad credit auto loans you should first get copies of your credit reports.

We can tell you why because for the last ten years here at Auto Credit Express we’ve been helping applicants with all credit backgrounds find a nearby dealer that specializes in everything from new car leasing to bad credit car sales. Our website also covers topics from Carfax reports to tote the note loans as well as today’s topic: why even people needing no credit auto loans should first check their credit reports before filling out an application

Credit reports

Credit reports are nothing more than an electronic list of your loan and payment records. Banks, credit card issuers and others that extend credit typically report payments to one or more of the three credit bureaus – Equifax, TransUnion and Experian.

Much of the information it contains covers “applied for” credit. This is credit that is extended based on a request to borrow such as a car loan, home mortgage or credit card.

A credit report may also list “not applied for” credit entries. These are accounts not resulting from a request to borrow such as bad checks, medical bills, tax liens or civil judgments.

If you pay all your bills on time, you credit reports will not contain any “not applied for” accounts.

Requesting credit reports

Requesting a copy of your credit reports will allow you to see if there is anything they contain that is incorrect. Mistakes like these can often lower your credit scores.

By visiting www.annualcreditreport.com you can receive one credit report per year at no charge from each bureau, although you’ll need to pay to receive your credit scores.

You can simplify the process by visiting sites such as www.FreeScore360.com, where, for a fee, you can receive all three reports and credit scores at the same time.

Knowing your FICO scores and what’s in your credit reports can tell you if you might qualify for a traditional car loan or if you need to find a dealer that offers poor credit car loans for people with bad credit.

The division between these types of loan is not always clear, but if your FICO scores fall below 640, you’ll typically only qualify for a bad credit car loan.

Finding a dealer

If you’ve determined you have bad credit, the next step is to locate a franchised new car dealer.

Unfortunately, many of these dealers don’t cater to bad credit customers. But there is something you can do to make the search easier.

That’s because here at Auto Credit Express we place applicants with bad auto credit with dealers that can offer them their best chance at getting approved for terrible credit auto loans.

So if you’re ready to take that first step in rebuilding your car credit, you can begin now by filling out our online car loans bad credit application.

Tags: Bad Credit, bad credit auto loans, credit reports

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