How does bad credit affect your ability to get a car loan? Well, if you are trying to go through a traditional lender who doesn't work with subprime customers, you will be looking at a challenging process that may force you to seek alternatives.

How Easy Is It to Get an Auto Loan Through a Traditional Lender?

Although the economy has begun to recover in recent years, 77 million Americans are still paying for the economic sins of the past. According to a 2013 survey by the Urban Institute, 35% of American adults have at least one collection on their credit report. Some are utilities; some are unpaid credit cards. No matter how you slice it, debt is debt, and lenders will see it as such.

Borrowing Blues

When you have damaged credit, such as a credit score of 620 or lower, you will likely be denied credit approval from standard lenders. But in the event that they say they can approve you, you are likely to face some challenging requirements.

Large Down Payment

In the event of a poor credit standing, a standard lender is going to want an up front payment as proof of financial commitment to the loan. This payment will be anywhere from 10% to 20% of the vehicle's value. Even if you're only looking for a $10,000 vehicle, that's still $1,000 to $2,000 you will have to pay up front at the time of purchase. That's a lot larger downpayment than some dealerships that offer car loans with $500 down.

High Interest Rate

Be ready to face double digit interest rates. Standard lenders will not be very understanding of the position you are in. To them, all they will see is a high risk borrower.

Require a Cosigner

A cosigner is someone who will agree to assume responsibility in the event you stop making the payments on the vehicle. If you have bad credit, you might not want to broadcast it, and when you ask someone to cosign your car loan, you pretty much have to do just that.

It's Easier than You Think

Getting back on track doesn't have to be hard, and it shouldn't be. That's why we do what we do. Auto Credit Express helps people just like you get car loans for the most reasonable terms they can qualify for from local bad credit auto lenders. Fill out the online application and get the approval process started. Once all the information you have provided has been verified, we'll connect you with a lender that can get you into a vehicle you can afford and get you into a vehicle you select right away!