Shopping for Bad Credit Lendersby Steve Cypher on Tuesday, October 2nd, 2012
If your FICO scores are low, how and where you can apply for an auto loan can often mean the difference between approved auto loans and being denied credit.
At Auto Credit Express we are very familiar with this scenario because we’ve spent the past two decades helping car buyers with bad credit.
Having said that, there are usually three ways car buyers, regardless of their credit scores, can apply for an auto loan.
The first option is applying for a car loan directly to the lender. Two ways this can be done are by walking into a bank and applying with a lending officer or going online to a lender’s website.
Both will work if your credit is good, but if your credit scores fall below a 640 FICO it’s usually not that simple.
Since nearly every subprime auto lender has certain requirements that must be verified – often beforehand – (such as employment and income) most limit their lending to indirectly working through franchised new car dealers. With this being the case, consumers needing high-risk auto loans usually find that applying directly is not only difficult, but the limited choices available mean they may up with much higher interest rates.
The indirect method involves applying for a car loan at a dealership. This also works well with good credit, since the dealer’s rates can be compared with those offered by area banks and online lenders.
Consumers with poor credit, however, typically find that this can be either hit-or-miss since not all new car dealers are interested in dealing with customers that have credit problems.
Online application at a targeted website
For credit-challenged car buyers, yet another choice is applying online at a web site that specializes in helping people with checkered credit histories.
Here, however, the chances of getting approved often depend upon the size of the dealer network along with the site’s transparency.
Size means the bigger the network, the better your chances of finding a dealer.
Transparency has to do with the website, itself. Is the online credit application secure? Does the company belong to the Better Business Bureau and, if so, what is its reputation? Is there a resource section where you can learn about the loan process along with finance calculators to help you determine if you even qualify for an auto loan?
Finally, is there a toll free number you can call that will connect you with an in-house customer service representative who can answer any questions you may have?
If the website doesn’t have these features, you may want to consider one that does before submitting any personal information.
Give us a shot
If you’ve had past car credit issues, we want you to know that Auto Credit Express can help you find a dealer for your best chance at approved auto loans.
So if you’re ready to reestablish your auto credit, you can start here by filling out our online auto loans application.