Almost everyone starting at the beginning of the car loan credit process does so without knowing exactly what their credit score is or what their credit report looks like. This is a big mistake. At best you will simply be worrying that any car loan credit application you fill in will be rejected and then feel that you have to start trying to explain to the sales staff. At worst another failed request for credit reduces your credit score even further. You can do this by clicking on the ‘free credit reports‘ button at the top of this page.

Free Credit Check

So if you have any worries over your credit history then get a free credit check. How you request a credit report can vary depending on which country you reside in but all requests are simple and straightforward. Usually the easiest and quickest way is get a free online credit check.

Don’t Panic

If you’ve decided to apply for a car loan and have a bad credit history or discover that you do, in fact, have a poor credit report with a low score. There is still no need to panic. There are specialists in supplying car loan credit to people with a less than perfect payment history and low credit scores. These loans are designed specifically for people who have credit issues. There are commercial lenders who are fully aware that credit problems may not simply be due to mismanagement of money or a lackadaisical approach to your financial affairs.

There can be many reasons like old county court judgements that are possibly long passed but never properly closed off, divorce of course can create enormous changes in your financial position. Unemployment is a real risk for many and already a reality for thousands of people in the current global financial crisis. Lets be real about this, if the banks can get caught out financially what chance has the average man or woman in the street? Getting car loan credit can be a challenge but not an insurmountable one.

Be A Bad Credit Winner

So, armed with an understanding of your credit score and report you can make sure that that any errors in your report are corrected. You would be surprised just how many reports contain errors. Any specific issues highlighted can be addressed and your new ‘bad credit’ car loan, can actually build up you credit score for the future – so long as you keep up the repayments on your car loan credit of course!

Know Your Credit Rating and Your Credit Score

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Go into any dealership and any salesman will tell you that their car finance loans are the best so do not to worry about your car loan credit.. Of course it will also be convenient – car and credit finance all under one roof. Whoa! Put the brakes on!

Clever Patter

Don’t fall for that clever patter. Dealerships and car showrooms never have financial branches to their companies. They use established third party credit lenders. The problem here is quite simple. To encourage the dealerships to use their car loan credit services the lenders must pay out large bonus payments. The dealerships in turn encourage their salesmen to ’sell’ the car finance loans by paying them a hefty commission. Now the finance company will not want to loose out and earn less money so they put up the interest rates by however much they must payout to the dealerships. That’s right – YOU pay for that car loan credit commission!

Finance On The Internet?

Many of the finance companies now have what is called a ‘web presence’. I.e. they arrange personal and car loans credit via the internet, cutting out offices, staff and other corporate overheads. This means a lean route to market bypassing all the middle men, which in this case are car dealerships and salesmen.

A Better deal For You?

Does that mean you will get a better deals on your car finance loans? You can bet your boots it does. Of course everything being equal the finance companies would like a little extra too, and I am sure they get it, but the savings they make mean they are able to offer car loan credit more cheaply and to slightly more ‘risky’ markets. For instance it enables the lenders to approve car finance loans for those with a less than perfect credit history and lower credit scores. In fact many lenders specialise in this market and that’s great news for you.

Online Car Loans Are Fast

Online credit loans also have the added advantage of being fast. Applications need no paperwork, the computers do most of the donkey work by automating credit searches and compiling your personal data. This usually means fast decisions. Another advantage to you is there is no salesman to deal with.

So forget the showrooms and dealerships. Get online and get that car finance loan. Then when you’re looking for your next car it’s you who will be in charge not the salesman.

Don't Despair At The Dealers. Online Car Finance Loan Applications Really Are Are Fast And Easy (picture by Channah)

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How Can I Improve My Chances Of Approval For Auto Car Loans If I Have A Bad Credit History?

The good news is that the chances of getting auto car loans approved, even if you have a poor credit score is still very good. If you go to the right lender that is. Go to the wrong lender and another refusal will push down your credit score even further. You need to ensure you apply for your loan from a specialist in bad credit auto car loans.

Credit Scores v Interest?

One thing that will be true though is that the lower your credit score, the higher your interest repayments will be. This is one reason why it is important to check your credit score before applying for a car loan credit. Pushing up your credit score by only a small amount may well reduce your interest payments.

Drive Your Credit Score Up

Try not to get too wrapped up in the interest rates though. Think of them as your your way of driving your credit score up. That has to be worth a few dollars doesn’t it? In other words, get your auto car loan, make your regular repayments and your credit score will steadily rise.

Recent Credit History

Recent history is very important when looking at poor credit ratings. For instance if you have a good recent history of repayments then this will go along way to offsetting any older issues. It shows you as you are now and not as you were. A poor recent history however can be a real problem if it shows a long term history of credit abuse. So six months before you apply for your car loan credit make sure that every credit payment is made on time. That’s mortgage, rates, store cards, credit cards etc.

Like I said earlier. Go to the right lender and you are most likely be successful in your auto car loans application. There are methods to improve your credit score very quickly, often in only a few weeks. In many cases this may be the best way to get car loan credit.

Of Course You Are Excited As You Pick Up Your New Car But You May Want To Wait Until You Get Home Before Starting On The Champers

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What type of credit debts can hinder a loan for a car? Depending on the credit score of the individual applying for a loan for a car, there are several kinds of debts that will hinder a car loan credit approval. If your over-all credit score isn’t too bad, you can have one or two debts that will not impact a car loan adversely, but if the credit score is already low, the same debts will probably result in rejection. If you do have any of the problems below then you will be best served by looking at ways to rapidly increase your credit score so you can get your car loan credit more easily.

Previous Car Loans

One of the first things looked at, of course, is previous auto loan performance. If you’ve already demonstrated delinquency on a previous loan for a car, this will be a major obstruction to getting a new loan.  Or, if you have any other time-payment loans that you are habitually late or delinquent, this may hinder your car loan credit.

It doesn’t have to be a previous auto loan, it could be something such as a credit card you’ve taken out for eyeglasses and contacts through your eye care company, or defaulting on a college loan, or mortgage.
Utility Bills
All of these items will be on your credit report and can have a negative effect on getting a loan for a car.  If you have any outstanding utility bills, or have a history of late payments with the electric, gas or phone companies, these will also have been reported to a credit reporting agency.
Repossessed Vehicles
If you have ever had a vehicle repossessed it is unlikely you will ever be able to get car loan credit for a car through conventional lending companies again.
Poor Payment Trends Can make It difficult
One single bad credit item on your report won’t likely stop you from getting a loan for a vehicle but a series or history of having trouble paying debts of any kind will make it harder to find a company willing to loan you the money for a vehicle.
Warning! Don’t Make It Worse For Yourself
So, if your credit score is low, you will only get rejection from many lenders that will in turn make your credit score even worse so don’t just move from one main lender to another in the vague hope of acceptance. If you have any credit issues at all you should use an online lender who specialises in arranging car loans for those with credit problems.

Get That Loan and Get That Car

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How Do You Get Car Loan Credit With Bad credit?

You have a poor credit history. It’s not your fault necessarily, these things happen. Life has a way of getting difficult at times through no fault of your own. Getting car loan credit seems to be very complicated. It can be difficult for the average Joe to figure a way to get a car loan with a bad credit history. But in reality, in this world, nothing is impossible. There are number of ways you can try to  get car loan credit fairly quickly.

Take look at the options below

New Car Dealerships

The first place that people go to when they want car loan, with or without a bad credit history, is to a car dealership. These places are renown for making ’special offers’ to buyers to hard sell their new cars and the bad credit history of a customer may not matter at all. You should be very wary as some salesmen can make unprofessional offers to attract and keep their customers.

Banks

Your own bank or other local banks can be a good source of loans because they don’t usually make you fill out a load of documentation so its make it easier to get a loan without any security and avoiding applying for car loan credit altogether.  At least it used to be until the recent sub prime mortgage farce. It can still be easier to get a car loan, even with bad credit, approved at your own bank , especially if you have a good payment history with them.

Second Hand Car Lots

Commonly, once folks have been declined for car credit at a dealership or local bank, the next move is generally to a dealer that offers in-house car financing. This method of financing can be extremely expensive. The salesman will be getting a commission payment from the finance company for your car loan credit, which can be substantial, so you will be paying for that as well. The interest rates and fees charged by these people can be excessive and costly.

Online Finance

This is almost always the easiest and the most efficient way to get car loan credit. It’s surprising how few people realise that this route is available or if they do they think it will be complicated but it’s actually the easiest way to get a car loan. Almost anyone can now get a car loan with bad credit  online. Quickly, easily and with no fuss – and free of the worry of a bad credit history.

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