Mark's car was starting to give him problems. The issues were becoming so frequent that he was actually starting to factor the costs into his budget. Because of this, he determined that it might be time for a new vehicle. But he had one concern: he knew that his credit was damaged due to medical issues having caused him to miss payments on some bills.
Mark told his friend Pete about his concerns. You see, Pete also had poor credit. What Pete told Mark wasn't exactly encouraging. He would probably have to visit a lot of dealers, and in the end, end up with a so-so car and a high interest rate.
But, there was a difference between Mark and Pete. Their situations weren't exactly the same. Upon further discussion, Mark discovered that the reasons for Pete's financial woes were self-inflicted: he didn't keep track of his bills very well, and his previous car had been repossessed.
Another difference - Mark came to us. We were able to find Mark a dealer who could work with his situation and get him approved for a subprime auto loan that had terms very similar to standard loans that those with good credit could get.
Know Your Credit
Mark's story is the exact reason why it is important to know what kind of credit you have, even if you are aware that it's bad. When Mark worked with us, we were able to determine that while his credit was indeed damaged, it wasn't through financial irresponsibility, but a medical issue. This is what we call “situational bad credit,” or instances where your finances took a hit due to a major life event. Other events include divorce, job loss and bankruptcy. In the majority of these cases, borrowers are able to be approved for loans with very little hassle or difficulty.
In Pete's case, his trend of not paying his bills and financial mismanagement was his downfall. Known as “habitual bad credit,” these are instances where the lender would see that there is a consistent pattern of late and missed payments.
Ways to Improve a Damaged Credit Rating
Even if you have a situation that is more like Pete's than Mark's, there is a way to get right. A bad credit auto loan is the perfect way to repair your credit and show lenders that you are ready to make a change for the better. And when you work with Auto Credit Express, you are guaranteed to work with dealers who will do everything they can to get you back on the road with the best rates and terms possible.
The bottom line is that even if your credit is bad, you might not have as much of a problem getting approved for a car loan as you think. You just need to find the right dealer. Our easy, secure and fast online application is the first step in the process. From there, we will arrange a time for you to meet with the dealer who is prepared to work with your situation. Start today!