Where you apply can make a difference when you need a bad credit car

Why apply for a bad credit auto loan?

Having bad credit, one of the more important decisions you'll have to make is where you should apply for terrible credit auto loans.

We should know because we've been involved in bad credit auto sales for over two decades here at Auto Credit Express. We've also helped buyers get approved for poor credit car loans.

And while these buyers could've visited a local tote the note dealer, this wouldn't have solved their auto credit issues since these dealers don't report loans or payments to the credit bureaus (and their loans often end in repossession).

That being said, there are usually three ways car buyers can apply for an auto loan and today we'll go over how each is affected if someone has bad credit.

Apply directly

The first option car buyers have is to apply directly to the lender. This can be done either by visiting a bank and applying with a lending officer or by going online to compare rates as well as apply for a loan directly with a lender.

This method works well if you have good credit, but if your credit scores fall below a 640 FICO and you need a bad credit auto loan it's not that simple.

Because of documentation requirements (i.e. verifying employment and income) most bad credit lenders only work indirectly through franchised new car dealers. For this reason, consumers with poor credit usually find that applying directly for a car loan is not only difficult, but their choices are also restricted and they could end up paying a much higher interest rate.

Apply at a car dealership

The second option 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 to compare them with those offered by the dealer.

If you have bad credit, however, this can be a hit-or-miss situation since not all car dealers participate in poor credit car loans.

Apply at a bad credit web site

For bad credit buyers, the third option is applying online at a bad credit car loan web site. In this case, the chances of getting approved depend upon the size of the site's dealer network and its transparency.

By transparency, we mean how the web site presents itself. Is the online auto loans application secure? Does the site belong to the Better Business Bureau and, if so, what is its reputation with the BBB? Does it offer a resource section where you can learn about the loan process and does it include various finance calculators to help you determine if you even qualify for a bad credit car loan?

Finally, is there a toll free number you can call in order to speak to an in-house customer service representative about your individual situation?

If a bad credit auto loan web site doesn't have these features, you might want to consider one that does before deciding to submit an application.

Apply with us

Auto Credit Express places customers with bad credit with dealers that can help them. These dealers are knowledgeable and work with a range of lenders to ensure you get your best chance of getting approved for a bad credit car.

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