Why consumers that have experienced credit problems should not always believe everything they hear when it comes to preapproved auto loans

What we know

We frequently get questions from consumers with questionable credit about whether or not it's possible to get a preapproved car loan.

Here at Auto Credit we know quite a bit about the approval process for applicants with poor credit. The reason for this is because we've spent the past two decades helping thousands of car buyers looking for auto loans find dealers willing to work with them because they have problem credit.

A result of our experiences led us to create a website so that these car shoppers could gain an understanding of the issues they face ranging from BHPH dealers to today's topic: getting a car finance bad credit instant decision.

Preapproved auto loans with bruised credit

In our opinion, there appears to be a great deal of deception both in print advertising and on the web regarding loans to credit challenged car buyers.

For example, here is a direct quote we recently saw 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 bit of fancy has either never done this type of auto finance or, if they have, they're trying to convince people to believe a statement that isn't true 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 – say, a history of dismissed bankruptcies or 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, at least from a reputable lender that reports to the credit bureaus.
• Comparing subprime auto lenders can be very difficult. Most of these finance companies only lend indirectly through franchised new car dealers. This means you won't know your interest rate until you visit a dealer signed up with one or more of these lenders. Even then, the lender is typically chosen (provided there is more than one approval) based on the overall terms (down payment, loan term, dealer acquisition fee and interest rate tier) of the credit decision, not necessarily just the interest rate.

What this means

For car buyers looking for a car finance bad credit instant decision or preapproval, the fact is this really isn't a part of the typical subprime loan process. The fact is that most of the lenders we're familiar with never work directly with buyers. Even if you were to find one, it's even more doubtful you could find two to compare the rates and terms. In our experience, anyone who tells you otherwise is just giving you an empty promise and hoping you'll fill out their loan application.

As we see it

If you currently have credit issues, you need to know how the subprime auto loan process really works so you'll know what to expect. Web sites that offer car finance bad credit instant decisions are simply looking for credit applications because in most cases really don't a true offer of credit based on your credit score (how could they - they haven't even seen it yet).

One more thing: here at Auto Credit Express we match applicants that have experienced car credit problems with dealers that can offer them their best opportunities for car loan approvals.

So if you're ready to establish your auto credit, you can begin now by filling out our online car loans application.