You don't need perfect credit to get approved for an auto loan. But, if you've recently applied for a car loan and were denied, you may be thinking that your bad credit is in the way. The good news is that there are lenders out there willing to work with you, but finding them can be a challenge.
Getting a Car Loan with Bad Credit
One of the most common ways car buyers with bad credit get financed is through a subprime lender. These lenders specialize in working with borrowers with credit issues, but they can be hard to find. Subprime lenders are indirect lenders - which means you can't sit down with one face to face and get a loan. Instead, you have to find a dealership that works with them.
But you can't just walk into any dealership, because not all of them have special finance department. At the same time, when you do find a special finance dealer to work with, the process of getting approved is a little different than a traditional loan.
There are three main things subprime lenders look at before deciding what you qualify for:
Because it depends on a subprime lender's specific requirements, how much car you can afford and whether or not you get approved varies.
Visiting a Buy Here Pay Here Dealer
If you've already attempted to get financing through a subprime lender and weren't successful, your next best option is to find a buy here pay here dealership. BHPH dealers lend in house, meaning you can finance and purchase a car all in one place. These dealerships typically don't check your credit. Instead, they use your income to determine what you qualify for. As long as you have a regular income and can pay weekly or bi-weekly in person, most BHPH dealers are willing to work with you.
If you choose to finance through one of these dealerships, you need to be aware that they tend to only carry older used vehicles. Also, unless these dealers state otherwise, they won't report loans or payments to the credit bureaus, so you won't be able to improve your credit over time.
Get Connected Today
Finding a lender to work with can be a challenge when your credit is suffering. If you've already been turned down for a car loan and worry you won't find financing, let us help you out.
At Auto Masters of Murfreesboro, we specialize in helping consumers in poor credit situations. Get started by filling out our secure auto loan request form today.
Charles Higgins has been in the automotive industry now for over 17 years. He has built a career by helping people with unique credit situations get financing. Charles believes everyone deserves the chance to build their credit while driving a reliable vehicle. Contact Charles today for your all of your credit needs.