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The Chances of Getting a Car Loan with Bad Credit

Consumers that have encountered poor credit are faced with a number of hurdles when it comes to locating a dealer that can offer them a good chance for a car loan approval
The Chances of Getting a Car Loan with Bad Credit
Our experience

Car buyers with bad credit often have difficulty locating the right kind of car dealers that are willing to help them with a car loan.

Here at Auto Credit Express we realize this is the case because for the past twenty years we’ve been helping consumers with questionable credit searching for online car loans find those very same new car dealers.

So why do we help them find dealers and not lenders and what makes one online auto loan site better than another? Glad you asked both questions.

High risk car loans

Most institutions that offer subprime auto loans to consumers with problem credit lend indirectly. This means that offer these loans directly to consumers either online or through brick and mortar locations, these loans can only be found at the car dealers that have signed up with these lenders.

Not only do these dealers submit credit applications to these lenders, they’re also responsible for pre-screening these applications for their minimum loan requirements and collecting the documentation needed for income and residence verification purposes.

Used car dealers

While it’s easy enough to find used car dealers that advertise “car financing for all”, most of these turn out to be small used car lots that only offer BHPH car financing.  These dealerships, where practically anyone can get financed, don’t report their car loans or loan payments to the credit bureaus. So while these borrowers will have solved their transportation needs, their credit reports won’t reflect any car loan activity so that most of these buyers will find themselves in the same credit situation the next time they need an auto loan.

Additionally, since most of these “tote the note” dealers aren’t affiliated with a new car franchise, the vehicles on their lots typically consist of older, high-mileage vehicles that, at best, will only qualify for a limited, short-term used car warranty.

Finally, a high percentage of these BHPH car loans end in repossession.

New car dealers

At the same time, many new car dealers don’t want the hassle of customers with credit problems. In many cases this is because dealing with subprime auto lenders requires special training for dealership employees as well as the need to stock the right types of vehicles.

1200 dealers and counting

The internet has made it much easier for credit-challenged car buyers with poor FICO scores to find those new car dealers willing to help them. Every year thousands of applicants in this same situation find that the easiest and least stressful way to locate one of these dealers is to go online and submit a loan application through web sites that specifically cater to consumers with less than perfect credit.

But even then there are differences in quality between these sites that could mean the difference between a car loan approval and being denied credit.

Here is what online car loan applicants should look for:

1. A secure online car loan application with 256-bit encryption
2. A resource section that includes auto loan calculators and informative videos
3. A pre-screening process that allows applicants to see if they meet minimum lender requirements
4. A nationwide network of affiliate dealers that will not only treat them with respect but are also signed up with a wide range of lenders to meet most customers’ needs

That last point is probably the most important of all, as a small dealer network means quite a few applications either will never reach dealers or the dealer an applicant receives a call from will be too far away.

Which brings us to one final point: At Auto Credit Express our web site not only includes a secure application, a resource section and a pre-screening process, we recently signed up our 1,200th affiliate dealer. Not only do we have one of the largest subprime networks in the U.S. but, more importantly, it means that our applicants have a better chance than ever of getting approved for an auto loan.

The Bottom Line

Now that you understand the chances of getting a car loan with bad credit, we want you to know that, at no charge to applicants, Auto Credit Express matches those that have experienced car credit difficulties with select new car dealers that can offer them their best chances at approved car loans.

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

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