Do We Finance Anyone Car Lots Really Offer Real Car Loans For People With Bad Credit

Dealerships that promise to finance cars for people with bad credit without credit checks commonly use the slogan, "we finance". There are some things that you should know before you go spending your money at one of these car lots and some of them may surprise you.

One thing that will surprise you is that "we finance" isn't really giving "real finance" to anyone. Buy here pay here car lots simply keep the title to the automobile until you've paid the full price plus interest. It's not actual auto financing that will help your credit score.

One thing that won't necessarily hurt your credit score, but will sure hurt your wallet is the down payments that these places want. In many cases, you could buy the same car on the street for just a little more than the amount that you have to put down at a buy here pay here car lot. That's just taking advantage of someone's inability to get real financing, or so they think.

That kind of taking advantage of people has landed many buy here pay here dealers in court. Sadly, because of the fine print in the sales contracts, there is little that can be done. If you do end up using one of these types of car lots, be cautious and take care to read the contract in full before signing.

One option that people have that have bad credit, is auto financing via the internet. There are some companies that provide financing for folks that have credit problems and help them to get real car loans. By getting a real car loan, you're able to rebuild your credit rating. With good lending services that will work with you based on your monthly income, you're able to get more car for your car payment, too.

Do it Yourself, No Money Down - Bad Credit Auto Financing For Cars, Trucks Or Motorcycles

A rumor that has been spread since the 1960's is that whatever a car dealer gets for a down payment is nothing more than profit. This rumor is in part, true.

An Example

The following example applies whether you're buying a car, truck or motorcycle with bad credit.

Let's say that you want to purchase a used car that has a selling price of $15000.00 and the dealer is telling you that because of your bad credit history, you have to put down a 10% down payment of $1500.00. In cases like this, it is very likely that the loan company approving you will only "advance" $13,500.00 on the vehicle in question and this is generally based on loan value. Typically, the dealer will have paid somewhere around loan value for the car and if they sell it at this price, then they aren't making any profit. So in this common example, requesting that you make a cash down payment of $1500.00 is in fact, $1500.00 of dealer profit and nothing more.

Dealers do have to make money and $1500.00 is a reasonable profit. It's disheartening however, to fork over a couple weeks worth of income just to make that happen, though.

How to Get A Car with No Money Down

If you have bad credit and need auto financing, and you don't want to put any money down, there is a solution. Now, hear me out on this, because this information can really benefit you and this information comes from 20 years of experience working in car dealership finance departments...

Buying a car from a private owner. This reduces the amount financed by around 7% or whatever your local tax rates are. This reduces the amount needed to buy the car and less money that has to be borrowed. There are also no dealer "doc" fee or dealer "prep" fee, which also reduces the amount needed to be loaned by $99 to $599 typically charged by car dealerships. Reducing the amount needed is good!

Negotiating with a private seller on the sale price is MUCH easier than negotiating with people that do it for a living (car dealers). If the seller doesn't have a large amount owed to the bank and is frustrated with taking time to show the car, you may be very surprised to find some really great prices on cars for sale by owner. This can be in your local newspaper, bargain paper or online classified.

"Do-It-Yourself" auto financing. This is the most important part. Bad credit doesn't mean that you can't get a car loan from a loan company outside of a car dealership. If you deal with a loan company directly, you're only dealing with them on the finance side of the purchase, not the price of the car. This enables you to qualify (get approved) for a specific dollar amount that you can base your car shopping on. There are online resources to do this from the comfort and privacy of your home.

Summary

Buying a car from a private owner reduces the amount you need to borrow significantly and if you shop a little, you'll have no need for a down payment, whatsoever. Also, this involves arranging your own financing which is very doable if you have bad credit and know where to go.

Dealer Financing With Bad Credit

You're wondering if there is a dealership that will approve you with your credit score. You've got credit problems and it's getting really frustrating trying to get approved. The vehicle that you really want you're told, isn't going to be an option because you've got bad credit. You wish you knew what you could do and even if it's possible to get approved for dealer financing with bad credit.

I'm not psychic. I just know what it feels like to be in your shoes. I've been there and I've got bad news.

I found myself in a position of having bad credit. With years of experience in the car business, I knew that dealer financing wasn't my best option. Buy here pay here car lots charge outrageous amounts of money for cars, interest rates and down payments. I knew this wasn't even something that I would consider.

I have worked in secondary lending, or what most people call bad credit finance. I know the in's and out's of it. This helped me to know a way around dealer financing that helped me to easily get approved.

You see, it's easier to get approved for financing if you do not go through a car dealership. You can get approved through a special finance company that specializes in working with people just like you and I. They base your payments on your monthly income, so you don't get in over your head. These companies on the internet have a database of lenders. As different lenders have different lending standards, you'll find a lender that will work with you very quickly when you look online.

Car Lots That Promise We Finance Anyone With Bad Credit

If you have a low credit score, you may think that you have few options for auto financing. Dealerships promising that "we finance anyone" can be a temptation. Are they good or bad? Are they safe to buy cars from? Let's look into the in's and out's of this type of buy here pay here auto finance.

This type of buy here pay here auto finance involves a direct contract between you and the dealership. There's not a real loan company to be found. If you have bad credit, you may be thinking that this will help you. It won't and won't do anything to help your credit rating.

One of the first major downfalls of this type of dealership is the requirement of a cash deposit upfront. Usually, this equates to what the dealer paid for the car wholesale, so you just end up making payments to pay the dealers profit on the sale. Plus interest, mind you.

If you have bad credit, what you need is a good second chance at auto financing. Fortunately, not all companies are out to take all your money. There are some good ones that are in the business of helping people that have credit problems, to get good car loans. With little to no cash down, you can secure good auto financing through respected online auto lenders. Many people aren't even aware that these types of companies exist. They work by getting you matched with a lender that has the guidelines to approve you, based on your individual circumstances.

Car Lots - No Money Down and No Credit Check

The good news is... There are legitimate opportunities available for you if you have bad credit and need a car loan without a down payment. While there are many scams online, you can find some real opportunities with lending networks that can help you get approved even with past repossessions, bankruptcies and foreclosures.

The bad news is... The only way that you're going to find car lots that offer no money down financing with no credit check, are going to be in your dreams. That's a very straightforward way of saying it, but it is the truth.

For whatever reason that you may be looking for car lots that offer no money down, no credit check financing, is most likely because you were not aware of the opportunities that are available to you through legitimate online lending sources. There are some reputable companies that can help you and offer you an approval that you might not otherwise be able to obtain locally.

The reason that there are no car lots that allow you to take car without any money invested or any credit history check is simply because that would open up the opportunity for fraud. That would create a situation where someone could come in with just a driver's license and walk away with a car. There are no buy here pay here car dealerships or even rental car companies that would allow you to take one of their vehicles without having some type of recourse to collect if you do not pay.

Car Loans For People With Poor Credit - Getting Approved For Online Financing

If you have poor credit, you probably been through the typical scenario of driving from one car lot to the next trying to get an approval for a car loan.

This can be a very aggravating experience.

It can also leave you in the dark wondering what it exactly is on your credit report that is holding you back. This is because a lot of dealerships are not upfront with you and explain the details to you of exactly why you could not get approved. This can also be the reason why they did not explain to you why you have to pay such a high interest rate or are required to have such a significant down payment in order to secure financing.

Car loans for people that have poor credit are available online through numerous sources. Legitimate sources for bad credit auto financing for people that have poor credit can provide you with much better options. There are good companies that have a database of lenders that can immediately match you with a loan company that has the guidelines to allow you and approval. While you may not get approved for a $40,000 automobile, the reasonably priced vehicle is well within reach if you meet certain basic guidelines.

You have to make a certain minimum income per month, you have to be a US citizen and there are details about bankruptcies and repossessions that you must be aware of. It is however, much more easy to get approved online that it is going through the typical scenario of going from one car lot to the next.

Car Loans For People With Horrible Credit

Okay, so what exactly is it that makes your credit horrible? Is it a repossession? A bankruptcy? A foreclosure? Do you have multiple late payments?

Maybe you have a credit card charged off or two?

Three or four?

Chances are if you have been to a car dealership, you have been turned down and told that you are going to be refused car credit if you do not improve your credit score. Sometimes car dealerships will tell people that they can get approved if and only if, they have a significant down payment that equals 20% or more of the sale price of the car. If you have a horrible credit, you have probably been told these things.

There is good and bad news...

The bad news is that you are simply not going to get approved for an expensive vehicle. So, if you have an idea of a brand-new Lincoln navigator in your mind, then that's just not going to happen. If you would like a decent vehicle that will get you where you are going and be dependable, then that is very doable. With some online lenders, it's actually possible to qualify for a brand-new vehicle. It all depends on how much monthly income you have and if any bankruptcy that you have had, is discharged. Any bankruptcy that you have had must be either discharged or dismissed in order for you to obtain a car loan.

My Recommendation: The fastest and easiest way that you can go about getting a car loan if you have horrible credit is to simply go online and use a legitimate car loan website. 

Car Loans For People With Bad Credit and No Money Down

Bad credit is something that is plaguing America right now with the recent downturn in the economy. More and more people are looking for car loans with no money down, while having bad credit. The opportunity to obtain auto financing with bad credit is available. You can easily obtain auto financing in this situation with no money down, but there are a few things that you need to keep in mind.

If you have bad credit, do not expect to get approved for a $50,000 automobile. While getting approved for a reasonably priced $15,000-$20,000 car, truck or sport utility is feasible without a down payment, you should not have pie-in-the-sky ideas that after a recent credit disaster that you'll be able to qualify for a high-priced vehicle.

Being able to obtain your financing without a down payment and with a reasonable interest rate is going to be determined by the place that you use for your financing. You will get a different answer everywhere that you go and this is simply because each individual lender or loan company, has their own requirements and guidelines that must be met in order for you to get an approval.

The best opportunity that is available for anyone right now that has a low credit score, is online lending networks. Lending networks that can match your credit profile with numerous lenders that will offer you an approval based upon your unique situation is by far the most convenient and least expensive way to obtain bad credit car loans with no money down.

Car Loans For People With a Repossession - Getting Approved For a Car Loan With Very Bad Credit

This article will look at the possibilities of getting approved after you have had a repossession. There are a couple different stipulations that are involved in getting this type of approval and one of them has to do with bankruptcy. If you have had a bankruptcy then that can make a difference in getting approved for auto finance with a repossession.

Was your repossession within the last 12 months?

If it was, then it needs to have been included as a part of a bankruptcy. Whether this is a chapter 7 or chapter 13 bankruptcy, it does not matter. But that repossession needs to have been included in a bankruptcy. Your bankruptcy also needs to have been discharged completely. This means that the meeting of creditors needs to have been completed and there should be no further court dates or obligations relating to your bankruptcy that are still outstanding. Everything regarding the bankruptcy needs to have been completed and satisfied in the eyes of the courts and your creditors.

If this is the case and you're repossession was included within a bankruptcy, then you will be able to obtain decent auto finance that will help you to rebuild your credit. Of course, the interest rates will be higher but if you get the numbers worked out right, you can drive away with a really nice car without having payments that are too high. Being able to afford the payments on this next car that you are about to get, is very important in making sure that repossession does not recur.

Car Dealers That Deal With People With Repossessions on Their Credit Report

When looking to obtain auto financing when you have bad credit, every possession can be a serious mark against you. It does not mean the you can get financing, it just means that there needs to be a few criteria relating to the repossessions in order to get the best financing opportunity. You have probably found out, if you've shopped locally at a dealer or two that most dealerships are going to tell you that there's nothing that they can do for you. That's very common, however there are really good sources that can give you a car loan even with a past repossession.

The first criteria that needs to be met is that the repossessions needs to be at least 12 months ago. This is something they can become debatable, because the actual date of the repossessions is not going to really show on your credit report. So it helps out if you remember the repossessions as old as possible. I'm not telling you to be deceitful or to be dishonest, I'm just telling you that you should really figure out exactly when that repossession happened. Sometimes we get timelines confused in our heads and if we really think back, we may find that things are better for us than we thought, in this regard.

If you repossession was a part of a bankruptcy, then the 12 month rule does not apply. Repossessions that are a part of the bankruptcy are totally different in the eyes of lenders. Now, you're bankruptcy has to be over with. You can't have a current bankruptcy that is not completely discharged or dismissed by the court and expect to get car loan. That's just not going to happen and in fact, you really cannot obtain any credit at all, so long as a bankruptcy is still open and is not over with.

Other than that, you just need to know where to go. There are some fantastic opportunities available online that are most likely not available in your local area. You may be pleasantly surprised to discover exactly what you may be able to qualify for very quickly.

Car & Auto Loans After Chapter 7 Or Chapter 13 Bankruptcy Discharge Or Dismissal

Obtaining a car or auto loan after a bankruptcy discharge or dismissal can seem challenging when you try to get approved at a local car lot. Here are some tips that you can use to better understand what you're up against and a recommendation that will help you to obtain auto financing a lot easier.

If you have had a chapter 7 or chapter 13 bankruptcy that has been discharged within the last year, most all lenders are going to be very critical in regards to your credit history. You will find that at a local dealership it may be a serious challenge to get approved after a recent bankruptcy discharge. With a chapter 7 bankruptcy, the bankruptcy will fall off of your credit report after seven years. The same is true with a chapter 13 bankruptcy. That is only if it is been discharged.

On the other hand, if you have had a bankruptcy that has been dismissed then it will stay on your credit report for 10 years. Not 10 years from the date that you file for bankruptcy, but 10 years from the date of the dismissal. So, if you're in a bankruptcy for two years and it was just dismissed then the 10 year clock starts to run now.

There are legitimate sources on the Internet that you can go to to get a car loan after bankruptcy discharge or dismissal. You certainly cannot expect to only pay a 4% interest rate, however you can obtain a reasonable financing with reasonable terms, based upon your individual situation.

Can I Get a Car Loan With a Credit Score of 620 - 630

Having a credit score of 625-630 is a problem if you try to get financing through a typical prime lender that normally only deals with people that have good credit. There are however, a couple good places that can help you to get a car loan, even with a score as low as 650 and below.

What does it take to get approved with a score this low?

If you have a job earning more than $1500.00 per month, are not currently in a bankruptcy and don't have a recent repossession, it's not that difficult. The trick to getting approved and getting reasonable payments and terms is simply a matter of knowing where to apply.

Sub-prime or secondary lenders are the way to go, but not all are created equal. For example, you can easily get approved with a buy here, pay here dealer, but that's not in your best interests. Sure, you can get financing, but it won't be with terms that are favorable and certainly won't help your credit score. Those types of places do not report to Equifax or any of the major credit bureaus, so there is no long term benefit for you. On top of that, the finance charges that those places charge along with inflated price tags on vehicles, gives you plenty of reason not to go that route.

One possibility that you may wish to explore is online auto financing with a good sub-prime lender. The better places to apply will help you to get approved with affordable interest rates and payments, and will also help you to rebuild your credit history so that next time, you won't have to have this concern.

Can I Get a Car Loan With a 500 Credit Score

Having a credit score that is only 500 can create serious obstacles when it comes to getting a car. To get a car with a score as low as 500, you will have to most likely think outside of the box and explore resources to get approved that you may have previously not been aware of. You can easily get approved, however you will not get approved for $40,000 vehicle.

You'll have to set your sights to something reasonable and work on rebuilding your credit.

One big mistake...

Many people that have low credit scores around 500 frequently make the big mistake of using a dealership that has in-house financing. While this is okay as a final and last resort, it should not be the first option that pops into mind. The main reason that this can be a mistake is because a buy here pay here car lot is not going to help you to rebuild your credit. They simply do not report to any credit bureau and if you make your payments on time, you will not be reflected on your credit report whatsoever. Yes, you can use a buy here pay here dealer as a reference locally, if you've made your payments on time. They will not however, benefit you when it comes to your overall credit history when you are applying for a credit card or home loan.

You are much better off if you use a website that has a database of lenders that you can be matched with.