Special Financing

Federal Auto Loan can help you find a special auto financing lender!

A Connection Service You Can Count On

Unfortunately, bad credit makes getting a car loan and other loans difficult. Regardless of the situation or decisions that led to you having bad credit, whether it was situational or habitual, unexpected medical expenses or repeated bankruptcies, bad credit is an obstacle. But, in many cases, it’s not an immovable road block. This is where special auto financing comes into play.

 

If you’re currently suffering from poor credit, you may not be able to obtain a “standard” loan on the car you need to purchase. This is where FederalAutoLoan.com can help with our special financing connection service. We work with a network of lenders and dealerships throughout the United States that offer these programs to buyers. And, we have matched more than 15 million consumers with lenders and dealers across the nation.

 

So, if you’re ready to overcome bad credit and buy a car, connect with us today. At Federal Auto Loan, we want to help people get another chance to take back their finances. A special finance car loan can be a great first step in rebuilding your credit.

 

Understanding Special Financing

With credit issues on the rise, special financing services have become more prevalent. Traditional means for loan-financing, like banks and credit unions, are typically not apt to approve loans for people with poor credit. So, the need for other means to get a car loan and other loans for an individual with bad credit arose, and thus, the creation of special financing companies.

Many traditional lenders view a person’s credit score as the most important factor in deciding whether or not to approve him or her for a loan. Special financing companies view a person’s credit differently. Some subprime lenders/dealerships don’t care about it at all; however, most still take it into consideration at least somewhat. But, they take a lot of other financial items into consideration as well.

Special financing dealerships typically look at your current employment, residency, and income as the determining factors for whether or not to approve you for a loan. Examples of these types of car dealerships include: in-house financing, tote-the-note, “We Finance Anyone,” rent-to-own, and buy-here pay-here dealerships.


It’s important to note with these types of dealerships that they will typically offer loans that have shorter loan terms and higher interest rates. Why, you may ask. Well, the unfortunate reality with bad credit is that lenders, special or not, will usually view that individual as a higher risk. Because, if you default on the loan, they lose money, and they are after all a business.


So, be sure when entering another loan agreement, that you are prepared financially. Even when working with a subprime lender, if you default on this loan, it will be very bad for your credit. This isn’t to scare you away from getting a car loan. A car loan could be the perfect first step for you to get your credit back on track. Imagine being able to make future purchase decisions without a poor credit score looming over your head.

Benefits of Subprime Car Loans

If you’ve been struggling to find a subprime automotive lender that will work with you and approve you for a car loan with bad credit, your struggle is finally at an end. When you work with Federal Auto Loan, our network of dealerships will work to approve you for the car credit you need. Plus, working with one of our subprime lenders could help improve your credit score drastically over time.

Paying off a car loan can be one of the best avenues for rebuilding your credit. The biggest factor is whether you make your monthly payments or not. If you stay on top of this bill, you could dramatically improve your credit with time. Plus, having a car loan gives you a line of credit to start building credit history, longer credit history is best, and it increases your credit mix if you have other lines of credit like a credit card or retail account.

As you better your credit score, you could even reach a point where you could refinance to get yourself a lower interest rate. And, you could set yourself up to make future vehicle or other credit purchases at much lower interest rates and working with a more traditional lender as opposed to a special financer. Improving your credit score for the future is a huge benefit to working with a subprime lender/dealership now.


As you make payments (or don’t), that will be tracked by various credit organizations like Experian, TransUnion, and Equifax. These three credit agencies provide free credit reports once a year/every 12 months. It’s a good idea to check your credit before starting the loan process to make sure all of the information is up-to-date and accurate. Maybe your score is lower than it should be.

Requirements for Special Financing Car Credit

Many people that are in the market for a bad credit auto loan believe they will only be able to afford an old, beat up, unreliable used car with high mileage. This is simply not true. FederalAutoLoan.com works with thousands of car dealerships across the United States that offer special auto financing on new cars and pre-owned, like-new vehicles.

As with any auto loan, whether it is conventional or sub-prime, there are minimum requirements that must be met in order to be approved. These include, but are not limited to:

  • U.S. or Canadian residency
  • A valid driver’s license
  • A steady stream of income

When it comes to special financing, a down payment can play a big role in a car loan approval or denial. Aside from buy here pay here lots, bad credit scores raise a red flag to lenders and dealerships that you are at a higher risk of defaulting on the loan, resulting in a loss of profit for the dealer. Therefore, putting money towards the vehicle up front shows the lender that you are committed to the loan and vehicle. Down payments also help you lower the total finance amount and monthly payment on the vehicle, helping you save money over time.

Online Special Finance Lenders

Being rejected by dealership after dealership is a waste of time and gas, and it’s straining. The stress and disappointment alone send most people with bad credit to look for other options. Thankfully, with the internet, there are other ways to find out if you can get approved for a loan. And, half the job is already completed for you.


With online, consumer-connection services, you can get connected with a subprime dealership/lender who can help you get approved for a car loan. Oftentimes, the issue here is finding those places. But, with Federal Auto Loan, that doesn’t have to be an obstacle for you.

At Federal Auto Loan, we help people in bad-credit situations get connected with dealers and lenders who will actually review their applications as opposed to dropping it as soon as they see the credit score. Plus, at Federal Auto Loan, we’ve eliminated half the battle for you. All you have to do is take three-ish minutes to fill out our fast, easy and secure online auto loan request form. From there, we work hard to try and find a dealership or lender near you that offers special auto financing.


To prepare for the next step in the car-loan process, you should prep the necessary documents that the lender/dealership will need to see. You will need your driver’s license, proof of residency, and proof of income, which should also give information about your current employment.


Once you’ve got the paperwork together and have sat down with the special financer, you could end up driving away with your new or used car that same day. Don’t wait! Fill out the connection form and get on track to getting a car and improving your credit.

Looking for special financing?

Our simple online auto loan request form is quick, easy, and free.
And best of all, there’s no obligation on your part.

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