By following these steps you can potentially save hundreds of dollars when financing a new or used car with no credit auto loans

Our business

Individuals with bad credit should try to save money whenever possible when financing with horrible credit auto loans.

We should know because we've been in the business for close to twenty years here at Auto Credit Express.

A web site we designed even helps applicants learn about issues such as buy here pay here dealers and repossession as well as what we'll be discussing today, a general overview of the problem credit auto loan process.

Issues with bad credit car loans

From our applicants we sometimes hear stories about how they've gotten themselves into trouble by entering into a sales contract they can't afford. What is unfortunate is that if they had followed some simple guidelines, they wouldn't find themselves where they are now.

Your FICO scores

Even before you visit a dealer, you should know what your credit reports look like and at least one of your FICO scores. With a credit score above 640, you might be able to get a car loan with a conventional lender such as a bank or credit union.

If it's below 640, you'll probably need a bad credit auto loan. Since the bad credit buying process is different, knowing both your credit score and your credit report information can be all-important.

Budget and research

The next step is to determine your car budget. You should include the cost of fuel as well as full coverage car insurance. You can then compare this to your income after expenses (or use the loan calculators on sites such as to check that your debt to income (DTI) and payment to income (PTI) ratios fit the parameters of typical bad credit lenders.

Dealer backend products

Dealer backend products are options that are offered by the dealer finance manager. Of these, gap insurance makes sense if you are taking out a 60-72 month loan with less than 20 percent down. A reasonably-priced extended warranty is also a good investment if you're buying a used car or financing a new one beyond its new car warranty period.

But stay away from window etching, rust-proofing and paint protection as these are always a waste of money. They add little or nothing of value of a car and you can do most of them yourself for a fraction of the cost.

Picking a dealer

Check with your friends, co-workers and the Better Business Bureau web site before visiting a dealer to find out its reputation for fairness in dealing with new and used car customers.

If you have bad credit, you might find it difficult locating a dealer that can help you – which is why web sites such as ours can help you.

The Bottom Line

To avoid a poor car loan experience, know your credit scores and be familiar with your credit reports. Do your research and determine your budget to be sure you meet the basic requirements of a loan before submitting an application.

If you have bad credit, you probably have more options than you realize. Before visiting a tote the note car lot, understand that they don't report to the credit bureaus and getting a car there won't help repair or establish your car credit.

As for us, at Auto Credit Express we can help you find a dealer for your best chance at an approval for a bad credit car.

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