Other tips for getting a bad credit auto loan
Even if you have poor credit, there are a number of steps that you can take to increase your chances of getting approved for a bad credit auto loan. The fact of the matter is, applying for a car loan can be stressful even if you have good credit! And, if you have credit problems, the stress associated with getting a loan can be overwhelming. This article is designed to provide you with some helpful tips for getting a bad credit auto loan.
Here at Federal Auto Loan we understand the bad credit plight. We’ve spent the last couple years helping people with credit-challenges find lender-dealer partners that can help them. But more than this, we have developed an extensive website that contains information on a wide range of finance- and car-related topics.
Many car-buyers with poor credit find it difficult to locate the right kind of lender-dealer partner on their own. Here at Federal Auto Loan, we assist you in the process. We can help you find a quality auto loan with bad credit.
Locating the right dealer or lender partner
One of the big obstacles people with bad credit face in the car-buying process is locating a dealer that can get them financed in the right way. Although many car lots cater to buyers with poor credit, most of them are “tote the note” dealers – also known as “buy here-pay here” dealers.
There are some issues with these types of dealerships. First, although these dealers can get you into a car, they typically don’t report your car loan or the payments to the credit bureaus. This means that while you may get the transportation you need, your FICO scores won’t improve – even if you’re doing a good job of making your payments on time. As a result, you’ll find yourself in the same credit situation the next time you need to purchase a vehicle.
Another reason that you should think twice about auto loans from buy-here, pay-here car lots is that they are not affiliated with a new car franchise. This means that their lots are often filled with older, high-mileage cars that may be unreliable.
This is not to say that all buy-here, pay-here dealers are bad. You just need to be careful and do your homework about any dealership you are considering.
In all likelihood, you will be able to find a number of dealers in your area that specialize in sub-prime financing. All you need to do is a little bit of research to find out which dealers are interested in working with folks who don’t have great credit.
The web has changed car buying
In this modern day, the Internet has altered the way consumers purchase vehicles. Websites such as Federal Auto Loan help to match credit challenged consumers with dealers that specialize in a wide range of credit options. Many of these are not “buy-here, pay-here” companies. Unlike them, these dealers work with a variety of lenders that offer some advantages over “tote the note” dealers. These advantages may include:
- The ability for the consumer to select a car or truck from a much larger inventory with greater options.
- Requirements from lenders make certain that the vehicles are either new cars or newer used cars with lower miles.
- A significant number of vehicles in the inventory are eligible for service contracts. These can often cover the vehicle for the entire loan term, helping to avoid potentially devastating repair bills should there be a problem with the vehicle after its been purchased.
- Reporting of loan and payment history to the credit bureaus so you can raise your credit scores and help to re-establish your credit.
Apply for a car loan or bad credit auto loan online
Federal Auto Loan places applicants with lender-dealer partners that can offer them some of the best chances of getting approved for a car loan or bad credit auto loan. So if you’re ready to take the first step towards rebuilding your car credit, fill out our secure, online auto-loan application.
Having bad credit is a difficult thing… and unfortunately, more and more people are finding themselves in a challenging credit situation given the state of the economy in recent years. But, having bad credit doesn’t mean the end of the world. There are ways to get a bad credit auto loan. And there are ways to improve your situation. At Federal Auto Loan, we want to help consumers to understand their options when facing a bad credit situation. We hope you found this guide to be a good resource and helpful to you in your circumstance.
And remember, if you need to locate vehicle financing through a lender or a dealer to help you get the car you need, FederalAutoLoan.com is here to help.