Car lots that advertise we finance anyone may help you get a car but there is another way that can lead to better credit scores while making payments on your bad credit auto loan.
Making a choice
You have probably seen those billboards along the highway that advertise “Your Job is Your Credit” and “We Finance Everyone.” But if you do have bad credit, should you consider going to one of those car lots? Without knowing how they work, the different kinds of car dealers can be confusing. We should know, because at Auto Credit Express we've been working with credit-challenged car buyers for over two decades. We even developed a web site so that we can accept applications and match up these applicants with local dealers that specialize in customer credit issues so that they have the best chance of getting approved for a car loan, even if that means car loans with bad credit.
We did this because consumers with serious credit problems often experience frustration and embarrassment when shopping for a car and applying for car loans. Getting turned down at a car dealer can lead many buyers to a tote the note or we finance anyone car lot, a choice that usually won't improve their car credit and a finance situation that often leads to repossession.
Your job is your credit car financing
It's also called tote the note financing or your job is your credit car loans. But however it's worded, it refers to car lots where the dealer furnishes the car loans for the vehicles in his inventory. Unlike indirect lending, where the car dealer arranges for a loan with the bank, with we finance anyone car loans, you are borrowing money from the dealer you buy the car from.
Your job is your credit car loans explained
We finance anyone car lots sell cars and, quite often, turn around and sell them again. In many cases, these dealers will sell a car with a large down payment, repossess it a few months or even weeks later after a missed payment, then turn around and sell it again. It's a form of bad credit car loans that have been around for many years. In fact, in-house lending was the first form of subprime car loans. While this type of lending may have made sense when it first began, just like the Model T, it has been replaced by programs that offer many more advantages to the customer.
Let's take a look at the good and bad:
Most of the advantages of buy here pay here lending lie in the fact that, for the most part, all you need to qualify for one is a down payment and a job. Most of the cars are fairly cheap, and you make payments every week. It's also easy to find a tote the note dealer – they can be found on the main roads of larger towns.
While the cars are affordable, they are older, with high miles, and are usually priced way over their book value. Being older, they more likely to break down. But the biggest problem with these We Finance Anyone car lots is that even if you make all your payments on time, it won't help you establish car credit. This is because most of these smaller car lots don't report your payment history to the credit bureaus.
On the road to better credit
The reason most bad credit customers can't get financed with a regular loan is because their credit score is too low. Buying a car from a tote the note or Your Job is Your Credit car lot won't help because these dealers don't report your payments to the credit bureaus. Without any new, positive payment history, the customer remains a bad credit car customer.
At Auto Credit Express, we specialize in placing customers with bad credit with dealers that can help them. In the process, we have helped thousands of people with bad credit buy cars and reestablish their auto credit through our nationwide network of affiliate dealers that specialize in bad credit car loans.
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.