Our experience

If you’re wondering how a problem credit auto loan works, you may want to check out some of our car loan calculators.

We’ve seen how they can help in the nineteen years we’ve been involved bad credit car sales here at Auto Credit Express.

On our web site can let you can see for yourself why tote the note loans won’t help your credit scores and you can check out the no credit auto loans process to stay clear of the issues that often lead to repossession.

Understanding your car payment

While your credit scores will tell you what type of car loan you’ll need, your budget will determine the payment you can afford. Knowing this, you can calculate the selling price of a car. And while every bad auto credit web site has a credit application, only a few will let you study the nuts and bolts of auto finance.

Using car loan calculators

Opening www.autocreditexpress.com in a second browser window will allow you to do everything while following these directions.

Step 1
If your credit scores are above 640, you can probably skip this first step. If they’re below 640, click on the RESOURCES button at the top of the home page or in the left-hand column. This takes you to the Auto Loans Resource Center. Here you can learn about the no credit auto loans process. You can also view a series of videos that explain buy here pay here dealers, offer loan advice and educate you on the different types of bad credit auto loan web sites.

Step 2
Now that you’re familiar with how bad credit loans work, go back to the RESOURCES page and click on the Loan Estimate Worksheet link located below the Loan & Down Payment Estimator header. This takes you to the Loan Estimator Worksheet.

Begin with the Income Factor section. This helps determine the typical loan amount you qualify for. Next, move to the Debt Factor section and list your monthly expenses. This will give you your monthly available income as well as furnish you with an estimate of the maximum loan amount you might qualify for.

In addition to these sections, you can also research your credit profile, calculate a home equity loan versus an auto loan and compare the total interest you would end up paying with different loan terms by using the Auto Loan Early Payoff calculator. Each is important if you really want to understand how horrible credit auto loans work.

When you finish, you’re ready to take the next step.

We can help you

At Auto Credit Express we specialize in helping people with bad credit find a dealer for their best chance at getting approved auto loans.

So if you’re serious about establishing your car credit, you can begin right now by filling out our online car loans bad credit application.

Our experience

If you’re studying whether or not to apply for poor credit car loans, you may want to check out a number of different car loan calculators.

That’s because using them could make a difference, and we should know because we’ve been in bad credit auto sales for nearly 20 years here at Auto Credit Express.

And while people with bad credit can always visit a tote the note lot, this won’t help with car credit since these dealers don’t report loans or payments to the credit bureaus and many of these loans end in repossession.

Your car payment

While a credit score will tell you the kind of loan you’ll need, your budget will determine the payment you can afford. Once you know this, you can calculate the selling price of a car. And while every auto credit web site has a credit application, only a few will let you study the nuts and bolts of car finance.

Using our car loan calculators

If you open www.autocreditexpress.com in a second browser window you can do everything while following the directions below.

Step 1
If you know your credit score and it’s above 640, you can probably skip this first step. If it’s below 640, click on the RESOURCES button. It’s located at the top of the home page as well as in the left-hand column. This takes you to the Auto Loans Resource Center. Here you can learn about the terrible credit auto loans process. You can also view a series of videos that explain buy here pay here dealers, offer loan advice and educate you on the different types of horrible credit auto loans web sites.

Step 2
Now that you’re familiar with the loan process, go back to the RESOURCES page and click on the Loan Estimate Worksheet link located below the Loan & Down Payment Estimator header. This takes you to the Loan Estimator Worksheet.

Begin by filling out the Income Factor section. This helps determine the typical loan amount you qualify for. Next, go to the Debt Factor section and list your monthly expenses. This will give you the available income that you have each month as well as furnish you with an estimate of the maximum loan amount you qualify for.

In addition to these two sections, you can also research your credit profile, calculate a home equity loan versus an auto loan and compare the total interest you would pay with different loan terms using the Auto Loan Early Payoff calculator. Each is important if you really want to understand the bad credit auto loan process.

When you finish, you’re ready to take the next step

Let us help you

At Auto Credit Express we specialize in placing customers with bad credit with dealers that can help them. These dealers are experienced and work with a range of lenders to ensure you get your best chance for a bad credit car loan approval.

So if you are serious about getting your car credit back on track, you can begin by filling out our bad credit online auto loans application now.

Where to go

If you’re reading this, there’s a good chance that you are one of a growing number of consumers with bad credit and you need a car. If that’s the case, the good news is that you’ve come to the right place. Through our bad credit car loan web site www.autocreditexpress.com we have helped thousands of applicants just like you reestablish their car credit.

You can begin the process simply by filling out our online car loans with bad credit loan application. By avoiding a tote the note dealer and qualifying for a second chance auto loan at one of our affiliate dealers you will be able to not only reestablish your auto credit, but by paying your other bills on time you can actually raise your credit score at the same time.

Driving around from dealer to dealer can be a time consuming, wallet-draining experience. If you have bad credit, it can also be embarrassing and discouraging, especially if the dealers you visit can’t get you financed. But there is hope and this is exactly why we founded Auto Credit Express. Not only do we want to help you begin the bad credit car buying process, we also want to explain how the auto loans for bad credit buying procedure works.

But a word of caution: if you’ve never financed a vehicle with auto loans for bad credit before, you need to be careful. A car that’s too expensive can stretch your budget and could result in repossession. If this happens, the only remaining choice for most consumers with bad credit is a tote the note or buy here pay here car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders who originate bad credit car loans will only consider applicants with a repossession that’s more than a year old.

Understanding our web site

It all begins on our home page. By hitting the Apply Today button, you will be taken to the quick qualifier form. Once you’ve studied the basic requirements and computed your qualified auto loan amount, you may want to estimate just how much the payment might be. In order to do this, go to the top of the page and click on the Resources tab. This will take you to our Auto Loans Resource Center where you will find everything from a Loan & Down Payment Estimator to the Financing Calculators section.

By clicking on the Auto Loan Calculators line it will take you to our Auto Loan Calculators page. By clicking on the first calculator box, the Auto Loan Calculator, you will be taken to a calculator that can give you a basic understanding of how down payments and loan terms can affect a bad credit car loan monthly payment.

You can now enter various loan scenarios in the different boxes, including interest rates, down payments and trade allowance. Once you’ve finished, click the “calculate” button and a new browser will open with your own auto loan summary. Although it is only a guide, it will give you an idea of how much vehicle you can afford.

Any time you need more information, simply go back to the top of the screen and click on the Resources tab. This will take you back to the resources home screen where you can read our latest articles, view our helpful videos and do additional research in our Credit Tools & Resources section.

How to apply for auto loans online

Now that you’ve finished with your research, it’s time to fill out the application. Go to the top of the page and click on the Apply tab. On the Loan Calculator tab, double check to make sure you qualify and then click the Application Form tab.

Fill out the application as completely and accurately as possible. The loan application is SSL encrypted to ensure the privacy of everything you share with us. When you’ve finished, and unless you need to add a co-signer, check the privacy statement box, fill in the four letter verification code that you see on your screen and click on the Submit Application button. That’s all there is to it. You’ve just taken the first step towards reestablishing your credit by applying for one of our auto loans for bad credit.

Within a short time (48 hours or less), you should be hearing back from one of our affiliate dealers who will explain the rest of the process.

The Bottom Line

At Auto Credit Express we have helped thousands of people with bad credit buy a car and reestablish their auto credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans and, since our inception, we have processed over 2 million applications and our dealers have closed over $2 billion in auto loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.

As we see it

If you’re reading this, you may be one of a growing number of consumers who find themselves in the position of having to finance their next car with a bad credit auto loan. As part of our business at Auto Credit Express, we have helped thousands of our applicants raise their credit scores and reestablish their car credit by filling out our online bad credit auto loan application and financing a vehicle with car loans with bad credit through one of our affiliate dealers. By paying off the loan in a timely manner, these buyers have a good chance at starting a new chapter in their lives.

Our web site also features a resource section where you’ll find auto loan calculators and other information that you’ll need in order to come to a decision about the kind of loan you should choose (such as a tote the note loan versus car loans with bad credit). The reasoning behind this is simple: a bad decision at this time could result in a loan you can’t afford which could turn into in a repossession that could lower your credit scores even further.

The alternative, buying a vehicle from a tote the note car dealer, can be a problem because these dealers don’t report payments to any of the credit bureaus.

Bad credit car loan interest rates

If you are someone with bad credit who has been looking for some way to buy a car with a bad credit car loan, one of the first questions that you want answered is the interest rate you might be charged when you apply for auto loans for bad credit. Unfortunately, the answer is not as simple as it might seem.

If you have good credit (generally considered being a FICO score of 720 or more) or even mildly good credit (somewhere between a FICO score of 640 and 720), a bank or other lender will look at the amount of auto credit that you’ve had and, assuming it’s fairly recent, offer you an interest rate based primarily on your credit score. This is why shopping for an interest rate with good credit is usually so simple.

If your FICO scores fall below 640, however, most conventional lenders will not consider you for a car loan. Instead, you’ll need to apply for a bad credit car loan.

Looking beyond your FICO score

We like to say that lenders who offer auto loans for bad credit differ from conventional lenders in one important way: instead of looking for a way to turn down your loan application, they look for ways to approve it.

In order to do this, they need to look beyond your FICO scores and, using special scoring models, these lenders consider a number of other factors in determining the interest rate you qualify for.

Your ability to pay

The first thing they consider is ability. In other words, can you afford to make a car payment? In this instance, it’s not how much you make, but how much of your monthly income is left over once the bills are paid that these subprime lenders focus on. In most cases, bad credit lenders prefer that all of an applicant’s debts, including the proposed new car payment, not exceed 40% to 50% of their gross monthly income. The lower your debt-to-income ratio (DTI) is, the higher you will score.

Most of these lenders also prefer to approve loans with monthly payments that are below 15% to 20% of your gross monthly income. The lower this payment-to-income ratio (PTI) is, the higher you will score.

In addition, the larger the down payment, the better the deal looks to the lender. More money down decreases the loan to value ratio and reduces the lender’s risk. The lower the LTV of the loan, the higher you will score.

Your stability

How consistent is your source of income and how likely will it be that you will be employed during the entire term of the loan? How long have you lived at your current residence and how long have you used credit?

The answers to all these questions will influence whether or not your application is approved as well as the interest rate you will be assigned. Renters will score lower than homeowners. Most bad credit car loan lenders also look for at least one year with your current employer – with higher scores given for longer job tenure. If your job time is less than a year, added weight is given if you’ve remained in the same industry and have switched employers due to a growth in your industry experience.

Living in the same residence or in the same geographical area indicates that your financial situation has been stable for a longer period of time. People who move around are considered to be “skip hazards”. In other words, if a lender has to repossess a vehicle, they want to know where they can find it. The longer you’ve been at your current residence, the higher you will score.

Your willingness to pay

Looking beyond the DTI and PTI ratios of your loan application, these lenders will scrutinize your credit report to determine if you’ve paid your past bills in a timely fashion – especially any prior car loans. If there is some “slow pay” in your history, they then need to determine if it “situational” bad credit or “habitual” bad credit.

What does that mean? In other words, are the slow payments the result of one incident, such as a layoff or medical emergency, or have you never paid anyone on time? Individuals with situational bad credit will score better than those with habitual bad credit, due to the fact that situational credit applicants have exhibited good credit habits in the past.

Why there is no simple answer

Ability, stability and willingness to pay are all taken into account when determining your interest rate when applying for auto loans for bad credit. In addition, the type of vehicle you want to finance – including price, year and mileage – as well as the length of the loan will also influence the interest rate you’ll qualify for.

So as you can see, the answer to the question “what interest rate will I be charged?” is not nearly as simple as it might seem.

What we can do for you

At Auto Credit Express we have helped literally thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our nationwide network of affiliate dealers specializes in bad credit car loans. Our web site, www.autocreditexpress.com, will help you determine how much car you can afford and, unlike many sites, our toll free number is listed on every page, in case you have any additional questions.

So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.

We can help

If you’re reading this, there’s a good chance that you have bad credit and you need a car. The good news is that you’ve come to the right place. Through our bad credit auto loan web site at www.autocreditexpress.com we have helped thousands of applicants just like you reestablish their auto credit. You can begin the process simply by filling out our online car loans with bad credit loan application. By avoiding a tote the note dealer and qualifying for a second chance auto loan at one of our affiliate dealers you will not only reestablish your car credit, you will actually raise your credit scores at the same time.

But if you’ve never done this before, you need to be careful. A car that’s too expensive can stretch your budget and result in repossession. If this happens, the only remaining choice for most auto loans for bad credit buyers is a Tote the Note, We Finance Everyone car dealer. It also means that rebuilding your car credit has to be put on hold for at least a year, since lenders who originate bad credit car loans will only consider applicants with a repossession that’s more than a year old.

Driving around from dealer to dealer can be a time consuming, wallet-draining experience. If you have bad credit, it can also be embarrassing and discouraging, especially if the dealers you visit can’t get you financed. But there is hope and this is exactly why we created autocreditexpress.com. Not only do we want to help you begin the bad credit car buying process, we also want to explain how the auto loans for bad credit process works.

Car loan calculators

Once you’ve studied the basic requirements after clicking on the Apply button and calculated the qualified auto loan amount, you may want to determine just how much the payment might be. In order to do this, go to the top of the page and click on the Resources tab. This will take you to our Auto Loans Resource Center where you will find the Financing Calculators section. Click on the Auto Loan Calculators line and this will take you to our Auto Loan Calculators page. By clicking on the first calculator box, the Auto Loan Calculator, you will be taken to a calculator that can give you a basic understanding of how down payments and loan terms can affect a bad credit car loan monthly payment.

Now you can enter various loan scenarios in the different boxes, including interest rates, down payments and trade allowance. Once you’ve finished, click the “calculate” button and a new browser will open with the auto loan summary. Although it is only a guide, it will give you an idea of how much vehicle you can afford.

If you need more information, go back to the top of the screen and click on the Resources tab. This will take you back to the resources home screen where you can read our latest articles, view our helpful videos and do additional research in our Credit Tools & Resources section.

Applying online

Now that you’ve finished with your research, it’s time to fill out the application. Go to the top of the page and click on the Apply tab. On the Loan Calculator tab, double check to make sure you qualify and then click the Application Form tab.

Fill out the application as completely and accurately as possible. The loan application is SSL encrypted to ensure the privacy of everything you share with us. When you’ve finished, and unless you need to add a co-signer, check the privacy statement box, fill in the 4-letter verification code that you see on your screen and click on the Submit Application button. That’s all there is to it. You’ve just taken the first step towards reestablishing your credit by applying for one of our auto loans for bad credit.

Within a short time, you should be hearing back from one of our affiliate dealers who will explain the rest of the process.

As we see it

At Auto Credit Express we have helped thousands of people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Our national network of affiliate dealers specializes in bad credit car loans. Since our inception, we have processed over 1 million online bad credit auto loans and our dealers have closed over $2 billion in auto loans. Unlike other sites, our toll free number is listed on every page in case you have any additional questions.

So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.

We get questions

At Auto Credit Express, one of the topics consumers ask us about most concerns vehicle repossession. Since a repossession can have a big impact on your credit score, we will first begin by explaining what would cause a lender to take a vehicle away from a customer.

When your car isn’t really your car

Even though your car is sitting in the driveway, if you are making payments on it, it’s the bank that really owns it. In title holding states, the vehicle title is sent to the lienholder, not the customer, so if you live in one of these states you won’t even see your title until the vehicle is paid off. But if you happen to live in a non title holding state and you look at the vehicle title, you will notice a “lienholder” section where the name and address of the bank are listed. In both situations, until you make your final payment and receive a “release of lien” letter from the bank (in non title holding states), or until you receive your title in the mail (in title holding states), the car really doesn’t belong to you.

Timely payments

It’s important to keep the bank informed if you are having financial problems. By calling them and explaining the problem, you might be able to set up special payment arrangements. Depending on the way your finance contract is worded, the bank may have the right to repossess your car if they receive the payment one day late, so you will want to explain your situation honestly. The bank also has the right to take the car without a court order, so if you do fall behind, don’t expect a letter in the mail beforehand.

If both you and the lender do agree on a change to the original contract, be sure to get the new terms in writing.

Other options

Even if you and the lender cannot come to an agreement, you still may be able to avoid a repossession. Here is what you can do:

Refinance – it may be possible for you to refinance the balance of the loan with another lender.

Sell the car and pay off the loan balance – if you owe less on the vehicle than it is worth (check the NADA book or Kelley Blue Book), it might be possible to sell the car and use the cash to pay off the loan – but be sure to check your finance contract to see if there are any prepayment penalties for paying off the vehicle early.

Types of repossession

There are two types of vehicle repossession: an involuntary repossession and a voluntary repossession. In an involuntary repossession, the bank sends someone to seize your car. In an involuntary repossession, you return the car to the bank, yourself. If you return the vehicle in a voluntary repossession, you may avoid certain fees the bank will charge you if it has to come and get your car. You should know, however, that the overall result will be the same and a voluntary repossession does not look any better on your credit report than an involuntary one.

Once a repossession occurs

Depending on the state in which you live, the bank must notify you within a certain number of days when the vehicle will be sold at auction. During this interim time, it may also be possible to buy back the vehicle for the balance owed plus any expenses incurred by the bank. You also may be able to reinstate the loan by paying the amount you are behind plus expenses.

Deficiency judgment

If the bank sells the vehicle for more than the amount owed, plus expenses, you are entitled to the difference (this usually doesn’t happen, otherwise you probably would’ve sold it yourself before the repossession).

If the vehicle sells at auction for less than the contract balance, the lender has the right to immediately collect the balance from you and the lender can also go to court and seek a judgment against you for the balance of the loan (which can include a garnishment of your wages and your bank account).

It’s important to remember that in most cases it would be very difficult for the lender to place a lien on any other vehicle that you’re currently financing and we’ve never heard of a lender placing a lien on a home.

The Bottom Line

If you’re having problems paying your loan, call the bank and explain your situation. Remember that a repossession is a black mark on your credit history and can prevent you from getting a car loan – even a bad credit car loan – for at least a year.

If your credit history does include a repossession, go to our web site at www.autocreditexpress.com. We have helped thousands of people in your situation reestablish their credit. While you’re on our web site, you can also find out if you financially qualify for a loan and even budget a car loan for your specific circumstances.