Second chance auto loans can help you get back on the road and get your credit back in shape. However your credit score got the way it is, second chance financing can provide the break you need to get things turned around. Also known as bad credit car loans, second chance auto loans can give you an opportunity to build better credit through on-time loan payments.
If you have bad credit, low credit, no credit, or have been turned down in the past due to a credit issue like bankruptcy or repossession, Auto Credit Express wants to help you get a second chance car loan with the help of our nationwide network of special finance dealerships. Still not sure if a second chance auto loan is right for you? Continue reading to learn more about the types of second chance auto loans and where you can go to get started.
Second chance financing is another word for bad credit financing. Second chance auto loans are designed for car buyers struggling with credit issues and are only offered through certain dealerships that work with subprime lenders or finance loans in house. Here's a breakdown of the two types of second chance auto loans:
What makes second chance financing through a subprime lender great for car buyers who are struggling with credit is that it enables them to finance a vehicle and build their credit at the same time. Once approved, as long as you keep up with your payments by paying on time and in full each month, you should see your credit score increase over time. Once your credit improves, you'll be in a much better position the next time you need to finance a vehicle. Or, if you're still in your existing loan, you may be in a position to refinance to get a better rate or trade in your car and upgrade.
Not all dealerships offer second chance financing. The ones that do don't always advertise this service, so it can be difficult to find a dealer that offers second chance financing. Subprime lenders are indirect lenders, so you can't approach them directly to apply for a loan. Your best bet is to find a local special finance dealership that works closely with subprime lenders and sitting down with their finance department to discuss your options which is something Auto Credit Express wants to help make easier.
When you visit a second chance auto financing dealership, you should come prepared with the documentation they need to see. Special finance dealerships and their lending partners require additional paperwork to prove your ability, stability, and willingness to repay a loan. The funding of the loan often hinges on this documentation. Typically, you'll need to provide:
The specifics vary, so it's best to ask about what exactly you'll need before visiting the dealership.
Second chance auto dealerships can work with car buyers who have fair, bad, terrible, or no credit, as well as with borrowers who've been through a bankruptcy or repossession. When your credit is poor, most traditional lenders aren't willing to take a chance on you. These lenders typically set a strict minimum credit score threshold you have to meet, and they may automatically turn down your application if yours isn't high enough.
Second chance financing car dealerships, on the other hand, want to help you break the cycle of bad credit with a second chance loan. You can get an opportunity to get a loan you otherwise wouldn't be able to qualify for, and you can turn your credit situation around by making all of the payments on time.
Auto Credit Express can help you get connected to a second chance financing car dealership near you. We want to help people improve their lives by making opportunities for auto loan approvals more realistic, even if your credit track record isn't spotless.
Let us take the hassle out of financing. Get your new car today!