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Turning Credit Denials into Approved Bad Credit Auto Loans

Car buyers with bad credit need to know that getting turned down for a bad credit auto loan is not necessarily the end of the road.

While applicants may think that once they're turned down because of poor credit that there is nothing else which can be done, in many cases a creit denial simply means that the loan was not approved in the particular structure with which it was submitted to the lender.

Keep in mind that these lenders are looking for ways to approve your loan application. But the real key is that you, and the deal, have to somehow fit within their approval standards. These lenders are used to seeing rough credit, so they place less emphasis on your credit history and instead concentrate on other factors.

Here are four adjustments that, if made, might possibly alter a negative credit decision from a subprime lender:

  1. Review your credit report- Although the effects of any changes you might make are usually not immediate, analyze the entries and notify the credit bureaus, through their correction processes, if you see any information that might result in a lower credit score.
  2. Consider a less expensive vehicle- It could be that the car being considered fits the lenders parameters but, in their opinion, it's still too expensive after reviewing an applicant's credit history, employment or residence stability.
  3. Increase the down payment- If you have it, ask the lender if a larger down payment would help your cause. High-risk lenders thrive on borrower equity and large down payments have been known to cure all kinds of credit approval issues.

  4. and finally...
  5. Add a co-signer- Someone living at the same address can add stability if their credit history is at least as good as, or better than, yours. Keep in mind that unless this person is your spouse, their income and debt must also qualify them for the loan because you will both be held jointly and individually responsible for it.
  6. Rather than the end of the line, you should look at a loan denial as an opportunity to explore alternative solutions to your current credit dilemma. Here at Auto Credit Express, we specialize in helping people with bad credit find a dealer that can give them their best chance at an approval for a new or used car loan.

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