Why consumers that have experienced problem credit should not believe a lot of the information they read concerning preapproved auto loans
What we know
Car buyers with bad credit often ask us if they can get preapproved for a car loan because they’ve heard they can from the information they’ve read on other web sites.
The fact of the matter is that here at Auto Credit we know a great deal about what buyers with poor credit should and should not expect when it comes to getting preapproved for auto loans. That’s because we’ve spent the past two decades helping car buyers with bruised credit find those new car dealers that can give them their best opportunities for auto loan approvals. It also inspired us to design our website so that credit-challenged car buyers could learn about the loan process they will be facing and covering topics ranging from BHPH dealers to what we’ll be discussing today: the fallacy of getting a preapproved car loan if your credit scores are poor.
Car loan shopping with a preapproved loan
From what we can tell, there seems to be a great deal of deception when it comes to the topic of car loan shopping for car buyers with poor credit.
Here is something we read not that long ago on another auto loan web site:
“Regardless of your credit history, you can get approved for a low interest auto loan…. Comparing lenders will help you find the best rates.”
Whoever wrote this has either never done poor credit auto finance or, if they have, they’re trying to convince people to believe in something that isn’t true – probably in order to get their credit information.
Here are the facts:
• There is no way anyone with low FICO scores will get approved by any lender for a low interest auto loan.
• If your credit report is really bad – such as a history of multiple repossessions – there’s a good chance you won’t get approved for any kind of auto loan – certainly not without a hefty down payment – and possibly not even then.
• Comparing high risk car lenders can be very difficult. Most of these companies only lend indirectly through franchised new car dealers. This means that consumers won’t know the interest rate they qualify for until they visit a dealer that’s signed up with one or more of these lenders. Even then, the lender (provided there is more than one approval) is typically chosen based on the overall terms of the credit decision (down payment, loan term, dealer acquisition fee and interest rate tier), not necessarily on interest rate alone.
As we see it
If you have experienced past credit issues you need to know how this particular loan process works so that you’ll know, beforehand, what it will take to reestablish your auto credit. Web sites that purport to offer preapproved auto loans for people with bad credit are simply hoping you’ll fill out their credit application. The fact is, none of what they tell you can represent a true offer of credit since they don’t even know what your FICO score is because they haven’t seen it yet.
One more thing you should know: at Auto Credit Express we specialize in helping applicants with damaged credit find those dealers that can give them their best opportunities for approved auto loans.
So if you’re ready to reestablish your car credit, you can begin now by filling out our online auto loans application.
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