Consumer Car Buying Advice Blog

If you have less than perfect credit you can still take steps to increase your chances of a car loan approval

How we know

Applying for a car loan if you have excellent credit and high credit scores is usually not much of a problem, but for consumers with credit issues the process can be both stressful and discouraging.

At Auto Credit Express we understand this because we’ve spent the last two decades helping car shoppers with poor credit scores. Our website is even designed so that applicants will thoroughly understand the high risk car loans process.

Finding a dealer

One of the biggest problems for consumers with poor credit is finding a dealer within a reasonable distance that is signed up with the right kind of lenders. The fact is that while thousands of car lots offer loans to buyers with credit problems, most are BHPH dealers that only offer tote the note loans.

And while these kinds of dealers can offer practically anyone with a steady income some type of transportation, they don’t report these loans or payments made on them to the credit bureaus. This means that although these customers may have a vehicle, their FICO scores won’t improve, their car credit won’t get reestablished and, for the most part, they’ll find themselves in the same credit situation the next time they need a car.

Another reason to think twice before visiting one of these lots is that most of these tote the note car dealers are not affiliated with a franchised new car dealership. In most cases their lots are filled with older, high-mileage cars that are often unreliable.

At the same time, many new car dealers don’t want to get involved with high-risk lenders. Unlike traditional new car financing, dealing with poor credit lenders requires special training for dealership employees. It also requires stocking the right kind of new and used cars.

Because of these issues, many new car dealerships simply don’t want to work with car buyers that have experienced credit problems.

The internet

The internet has also changed the way consumers with both good and bad credit buy vehicles. Specialized web sites are able to match the needs of customers of all credit types with franchised new car dealers that offer a wide range of lending solutions that offer a number of advantages over BHPH dealers including:

•    The ability to choose a vehicle from a much larger inventory
•    Lenders that require the vehicles they finance to be either new cars or newer used cars with reasonable mileage
•    An inventory with the majority of vehicles eligible for service contracts that will typically can cover the entire loan term, helping to avoid potentially credit-damaging high repair bills
•    Loan and payment information that is reported to the credit bureaus allowing buyers to raise their credit scores and establish their auto credit

One place to begin

At Auto Credit Express we specialize in matching applicants who apply with us with new car dealers that can offer them their best opportunities for car loan approvals.

So if you’re ready to begin reestablishing your car credit, you can begin now by filling out our online auto loans application.

Tags: Bad Credit, high risk car loans

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