Finding Auto Loans For Bad Credit
Finding an auto loan when your credit is practically perfect is usually a piece of cake. Basically you have the world of all auto dealer loans at your fingertips. But, if you are planning on finding any type of auto loans with bad credit or are looking for a bankruptcy auto loan, it gets a little more complicated and not so easy. You see, your credit report is the number one thing that a lenders will look as before they decide to give you the money or kick you out the door while they're laughing in your face. OK, so the they probably won't be laughing in your face, but trying to get a loan and having bad credit in the eyes of some of the more traditional lenders might as well be a joke.
But, don't start freaking out yet. If you happen to have some 'fair', 'bad' or 'poor' credit as the lenders like to call it, you still have plenty of options to get yourself a car loan. However, finding yourself a good auto loan with bad credit is definitely going to take some more time since you'll have to do some extra researching and applying before you can find the one that you're most comfortable with. Oh, and yeah, you'll be spending some more money getting the loan, too because the lenders will see you as a higher liability. Just remember as you being your search for bad credit financing that you're not the only person that's ever had to do this and you're not going to be the last.
How Having Bad Credit Affects Finding An Auto Loan
Having bad credit affects the way that you find an auto loan in a few different ways and unfortunately none of them are very helpful. Here a few of the differences that you should notice (if you haven't already):
No Traditional Lenders: One of the first things that you'll notice when you begin searching for an auto loan is that, depending on how bad your credit actually is, you're most likely not going to be able to get any type of financing from what I would call 'traditional' lenders. These are the guys that you could rattle off the top of your head and who most likely have a few banks in the town that you live in. A few of these traditional lenders would include Wells Fargo, Capital One, Chase, CitiBank and other larger, more established institutions. Even some of the more well-established online lenders like LendingTree.com and Up2Drive.com won't even think about financing someone who had a bad credit score.
Working With Sub-Prime And High-Risk Lenders: As you move away from the traditional lenders you'll begin to get more and more familiar with some of the sub-prime and high-risk lenders that you're going to be forced to deal with. Most of these lenders are very legit, but just be sure to do some quick background checks on the web (just Google them) so that you know that you're dealing with a lender that you can trust and feel comfortable working with.
Dealing With Higher Interest Rates (APR): Whether you're dealing a new, used or refinance car loan you need to know that your interest rates, or APRs, are usually going to going to be at least a couple percentage points higher than most rates that you would be getting if you had a good credit score. Like I mentioned earlier, the higher the interest rates, the more of a liability you are to the lender. You can see how a refinance affects your APR by using a refinance auto loan calculator.
Where To Find Your Bad Credit Auto Loan
Now that you know what all to expect as you begin looking for your bad credit car loan, I'll give you a few places that you can check out that should hopefully be able to get you financed. Each of the following lenders are specifically focused on getting people with bad (or 'less than perfect' as most of them call it) credit into a car as quickly and as easily as possible.
Also, one more thing, be sure to get a copy of your credit report before applying to any of these lenders so that you can have your credit information ready for when you need it. You can get one free credit report a year at AnnualCreditReport.com.
MyCreditTree.com - This online lender claims to accept and approve 99% of all applications that they receive and they have no problem working with people who have bad credit, have filed bankruptcy and even who have repossession in their credit history.
AutoCreditExpress.com - This online lender also has a high acceptable rate of 97% and they will also deal with someone who has file for bankruptcy. As long as you have a full-time job, have proof of residence (can show recent utility bill), are able to get auto insurance, have proof that your income level is at least $1,500/month and live in either Canada or the United States you're good to go.
RoadLoans.com - This online lender has helped tens of thousands people with less than perfect credit with their auto loans and is one of the leading online financial lenders that specifically focuses on bad credit in the automobile market. They can finance and refinance your car and also give you easy access to your auto loan online.
CarCredit.com - This online lender has a different approach to getting you into a car as their goal is to connect you directly to a new or used car dealer that can get you financed, no matter what state you live in. The application will only take you 60 seconds to complete and once it's completed you'll be contacted within 24 hours after that by one of their representatives via email. There's no obligation to buy anything and the application is free.
Good Luck With Getting Your Loan!
Well, that's pretty much all that you need to know as you begin looking for a bad credit auto loan. So get out there, find a lender that you feel comfortable with and you should be getting behind the wheel of your new ride in no time!
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