Many credit challenged consumers may actually need a bad credit auto loan in order to build up their credit and eventually qualify for more affordable interest rates.

Why we're here

At Auto Credit Express we've spent close to 20 years working with consumers who have bad credit and helping many of these same individuals raise their FICO scores and reestablish their car credit by financing a vehicle with a bad credit auto loan. At the same time, we try to educate our applicants on the loan process, since a bad decision at the outset can potentially lead to visiting the wrong dealer and failure in obtaining a car loan.

As with anything else, the key to a successful bad credit car loan is focusing on the basics and today we're going to focus on why a bad credit car loan may be necessary to help reestablish your credit.

The alternatives

One of the questions that we get asked most often is: “Why should I get a bad credit car loan? I can pay cash for a car and get a credit card to rebuild my credit.” Here is why that approach probably won't work:

Revolving and installment credit

A charge card is a type of revolving credit. If you don't pay the entire balance every month, the credit card company allows you carry over (or “revolve”) the balance to the next month.

A car loan is a type of installment credit. With installment credit, you sign a contract to pay back the amount borrowed, plus interest, for a set amount per month for a fixed number of months (such as $300 per month for 48 months).

What auto lenders look at

In determining your credit score, the credit bureaus include both types of credit. But while automotive lenders also look at your entire credit they put special emphasis on your installment credit history – and specifically your installment car credit history. In other words, while a good payment history with a credit card will help your credit score, it is not the strongest type of credit to have if you want to eventually buy a car on credit.

How we can help

For nearly 20 years, Auto Credit Express has been helping people with credit problems get approved for new and used car loans. Our dealer affiliates work with a broad spectrum of bad credit auto loan lenders to get you approved. Since our inception, we have processed over 1,000,000 online bad credit car loans and closed over 1 Billion dollars in auto loans.

For more information, please visit to see what we can do for you.