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Damaged Credit Car Loans

1. The first choice that car buyers have is to apply directly to the lender for a car loan. Before Al Gore created the internet (just kidding), this was done by visiting a bank and applying with a lending officer there. With the advent of online lending, car shoppers can go online and not only compare rates, but also get a car loan online.
   
   This is known as a direct application and it works very well if you have good credit. But if your credit scores fall below a 640 FICO and you need a car loan and have damaged credit, things are not so simple and it isn't as easy to get a car loan on line.
   
   The fact is, most bad credit lenders, due to the need to verify employment and income, only work indirectly through franchised new car dealers. For this reason, people with bad or damaged credit will find that trying to get a car loan on line will not only be difficult, but their choices will also be limited and they could end up paying a much higher interest rate.
2. The second choice that car buyers have is applying for a loan at a car dealership. This also works well if you have good credit, since you can shop for loan rates online and then compare these rates with those offered by the dealer.
   
   If you have damaged credit, however, this can be hit-or-miss, since not all car dealers offer damaged credit car loans.
3. For bad credit buyers, the third choice is applying online at a bad credit auto loan web site. Although you won't actually get a car loan on line, these sites in most cases will direct you to a dealer that works with a wide spectrum of lenders - especially those that cater to customers with damaged or bad credit.
   
   But in choosing a web site, you need to ask yourself some questions. Is the bad credit car loan application on the site secure? Does the site belong to the Better Business Bureau and what is that site's reputation with the BBB? Does the site offer a resource section where you can learn about bad credit car loans and does it include various finance calculators to help you determine if you even qualify for a car loan? And finally, is there a toll free number you can call in order to speak to a customer service representative about your individual situation?
   
   If the web site you're considering doesn't feature all this, you might want to consider one that does before you try to get a car loan on line.