Rebuild your Credit with a Bad Credit Car Loan

The economy continues to limp along while banks and other lenders are tightening their credit policies. The problem is, you still need a new car because your old one is on its last legs. Fortunately, there are the steps that you can take to increase your chances of financing a new vehicle.

The First Step

Know your credit score. Here at Auto Credit Express, we know that buying a car without knowing your credit score, sometimes called a FICO score, is a lot like going on vacation to a place you’ve never been before and not bringing along a road map. Just as the road map tells you where you are going and how to get there, your credit score can tell you how to buy a car and, in many cases, where to buy a car.

If your credit score is above the 620 to 640 range, you can probably finance your new purchase through a regular bank, known as a prime or near prime lender. Other factors that come into play include previous high credit limits as well as any previous automotive credit history. This means that even with a FICO score at or above this range, a lender may require a co-signer if you haven’t had any previous car loan history.

Qualifying for a prime car loan means that you can buy a new vehicle the regular way – pick out a car, negotiate the price, secure financing then sign the papers and drive your new car home.

Less Than Perfect Credit

If your credit score falls below the 620 to 640 range, there is still a good chance that you can qualify for a car loan, but you need to realize that this type of loan will be made by a lender that serves the subprime market. You also need to educate yourself, because the bad credit car buying process is much different than what you might be used to. And just as the bad credit buying process is different, so is the dealer that can help you with a bad credit car loan.

At Auto Credit Express, we know that many car dealers don’t offer bad credit car loans as part of their lender portfolio. Because subprime loans require more work than regular loans, dealers are responsible for more paperwork and for making sure that the documentation is correct as well as verifiable. If anything goes wrong with the loan, the paperwork is sent back to the dealer and the dealer holds the contract for the car. When this happens, the dealer must collect the monthly payments from the customer and, believe me, most dealers don’t want to do this.

How Auto Credit Express can help you find a local dealer

Here at Auto Credit Express, we specialize in helping people with bad, blemished, bruised and tarnished credit buy cars and reestablish their credit at the same time. Through our web site,, we have helped thousands of customers locate the right dealer and get financed on a new or low-mileage used car. We do this by educating our customers. Our web site contains calculators and resources that will walk you through the application process, answer your questions and help you determine how much car you can afford. Unlike the vast majority of nameless, faceless “blind” bad credit car loan sites, our toll free number is listed on every page in case you have any additional questions.

When you do decide to apply for a bad credit car loan, our bad credit car loan application can be filled out in the comfort and security of your own home. Remember, here at Auto Credit Express, we are experts at “rebuilding America’s credit.”

Posted on September 29, 2008 by in New Cars, Used Cars
Reader Comments

4 Responses to Rebuild your Credit with a Bad Credit Car Loan

  1. Esther Carpenter says:

    Dear Mr. Cyper,

    I have a 1999 Nissan Maxima that as recently broken down, it still running but undrivable because there is something wrong with the engine. I need a new car ASAP. I have already been to several dealers thinking that the car is still worth something because it is still running but I have found out that it is not, also I have finished paying for the car but during the course of the loan I had some late payments and I still owe about $990 in interest reducing my credit score to the low 500’s. Nobody wants to take the car for trade and at the same time I have really gotten the run-around from every place I’ve gone, they let me drive a nice sedan and then when t comes time to work out the financing that car or nothing on their lot will seem to work. I get approved so they say but it must be for a very small amount because I couldn’t even get a 2004 Maxima that was only 14,491.00??? The last place I went to advertised they would take your car in trade no matter what the condition but they didn’t want my old Maxima either and they ended up giving me a 2006 Dodge Caravan with 49,000 miles on it. It seems to be nice vehicle but I am leary of the deal, I am supposed to pay 190.00 a month for a warranty for 18mos along with the car payment of 244.00 a month for 60 mos. Which is not too bad but the finance manager told me that the lender will call and interview me and I must answer every question correctly or the deal will be off and they will take the van back, that is troubling because as large as this city is it is very important to have a car also I work over night and there is practically no public transportation at the times I need to get to work. I filled out the application on your web site and a lady that seemed nice called me and said that I was pre-approved for $15,000 loan and she told me who she was with and where they were and she gave me the web site address to check out their inventory, I called her back and told her that I had interest in a 2004 Maxima on the site and if she could speak to the finance office to see if that would work with the amount I was approved for and she never called me back to say yes or no, I called her back a couple of times but they said she was not at her desk and I kind of felt that she did not want to speak with me again, I am not sure what I am doing wrong but I know that I really, really need a car and I don’t really like the deal I have going with the Caravan. They gave it too me late Friday evening and told me to bring it back on Monday to get it cleaned up and to put the seat in the back but the day before they had let me drive a Mazda 6 (that I really liked) home and had me thinking that this would be the car but when I went back to the dealership to sign the paperwork they came back to tell me that that car was not going to work and they wanted me to look at something else, that was really messed up because I had rented a car and I took t back before I went to sign the paper work because I thought this was a done deal only for them to tell me that its not and this is how I ended up with the Caravan, see why i think this is a shady deal, what can I do? If I find somthing more suitable can’t I return this one? I am not really a van person its just me and my fiance we don’t have any small children so this just doesn’t fit. Do I have to accept this because of my credit score and what if it falls through? What about the lady that called me from your sources, can she help, and why didn’t she call back, its very important. Please help if possible.

  2. Steve Cypher says:

    Thank you for your information and feedback. I have referred your information to our customer service department. Someone will be in contact with you shortly.

  3. Esther says:

    Dear Mr. Cypher

    Thanks for you speedy answer to my query. Someone contacted me immediately from your site and told me that they tried to find my info but couldn’t. Upon my investigating more closely I discovered that I had applied with Community Auto Credit and not your we site. I filled out the application for your site also. I hope that I have not gone too many places because I’ve done several applications trying to get a suitable car will this affect my chance of getting something decent? Thanks for all your help, I really, really appreciate it.

  4. Steve Cypher says:

    Too many inquiries can lower your credit score, but FICO has a tendency to group auto loan inquiries together, since they are all related to a single transaction (buying a vehicle) if they happen within a limited time frame.

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