How Hard is it to Get Approved For Bad Credit Car Financing

In the old days of bad credit car financing, you were limited to a few cars on the car lot that the dealer tells you that you can get approved for. Worse is when you had to use a buy here pay here lot because you couldn't get approved for anything through a regular dealership.

Those days are gone and there is GREAT news for you!

Now, even with horrible credit, you can fill out one application online and have multiple finance companies competing for your business. When they compete, they offer lower interest rates and especially lower payments, which is what you want anyway, right?

Having bad credit, you are probably discouraged and think that you'll be that one person that doesn't get approved and don't want to get your hopes up. I'm proud to tell you that 99% of people that apply for car loans online through special finance companies get approved. It may not be for a $40,000.00 automobile, but you can get approved for a good vehicle based on your income.

Interest rates are much lower with online finance companies that specialize in helping people that have credit problems. Payments are lower because of this and there usually is no need for a down payment.

When you have your own financing arranged before you go to a dealership to shop, you can focus on negotiating price with the dealer, rather than them controlling the situation by hanging "loan approval" over your head. It's a relaxing feeling to walk into a dealership and make an offer, rather than being told what you can and cannot buy.

Bad credit car financing isn't that hard. You just need to use a lender that specializes in helping people that are in your situation.

How Easy is it to Get Approved For Special Finance Online Car Loans With Bad Credit

Years ago, before the age of instant gratification on the internet, you had to sit in a loan officer's waiting area to hope that you could get approved for a car loan. Even worse was when you had to resort to car dealers that offered so-called in-house financing because you couldn't get anything else.

Welcome to the 21st century...

Even with disasters on your credit report, you can apply for a no money down car loan right here on the internet. Regardless of repossessions, foreclosures or other major credit disasters. Getting approved is so easy. With legitimate sites that offer special finance car loans, all you have to do is fill out one simple form and you'll have lenders competing for your car loan. Approval is virtually guaranteed and payments are based on your monthly income.

If you've got bad credit, you might be discouraged from thinking that you're good enough to get approved for an auto loan online. Let me tell you, it's easier than you're probably imagining. Thousands of people have done it and the only reason that more haven't, is that they simply didn't know that they could.

When you use an online lending source, your interest rates aren't marked up by the dealer, which results in savings for you. You can even get a no money down loan so long as the sale price of the car isn't that much above loan value. Don't worry about it. Most reputable special finance lenders will give you all the details and work with you.

How Do Bad Credit Car Dealerships Make Money on Auto Loan Rates

Many people are under the assumption that car dealers only make money on the sale price of a vehicle. If this were true, it would make buying a car much simpler and getting a better auto loan rate a lot easier. It's not the case however, and very few people that are outside of the car business or have never worked in that industry are aware of exactly how it works. The fact is that the sale price of the vehicle only amounts to a small part of the total picture.

When you go into a car dealership to buy a car, the sale price primarily covers the cost of the car, the cost of dealership overhead and the salespersons commission. That is called front end profit. Where the real money is made, is in what is called back end profit.

When a dealership takes your credit application and sends it to a few lenders, the lenders send a response that either approves or denies your application. If your application is denied there is generally a good clear answer as to why, which helps the dealer to know in the future what to look for prior to submitting applications to that particular company. If your application is approved, there is a few different factors that are involved. There is be amount allowed for financing, a percentage of that amount that the creditor will allow for an extended warranty, and the number of percentage points that the dealer can add to the loan. These percentage points, otherwise known as dealer add-on rate, are where a lot of hidden money is made in car dealerships. To elaborate on this, let's have a simple example.

Let's say that the creditor or loan company, approves your loan at an interest rate of 10%. That is a reasonable auto loan rate for someone that has had some bumps in the road on their credit report. If the approval comes back allowing the dealer a dealer add-on rate, of 3%, then the dealer can add 1%, 2% or 3% to your auto loan rate. The difference between paying 10% or 13% on your car loan, can make a substantial difference in the amount of your car payment. In many cases, this can add $100 or more to your monthly car payment. The additional amount that you pay each month because of the dealer add-on rate, is divided between the car dealership and the finance company.

So what happens if you trade your car before your car is paid off? Generally a dealership is only charged back if you trade your vehicle within the first year. That is why the dealership is not advanced the full amount of the extra profit that is made on the dealer add-on rate.

How can you avoid this? With the veil of secrecy being held closed so tight in car dealerships, regarding this issue, the public really has no way of even knowing what their true interest rate is when they are approved. The only way to avoid this is to seek financing outside of a car dealership and even then similar principles operate with bank loan officers. One of the best ways of avoiding this is comparing auto loan rate quotes from multiple companies, or using a service that uses the best rate for you.

How Can You Get a Car Loan With Bad Credit

If you want to get a car and you have bad credit, one of the first things that you need to do is to identify the loan companies that work with you. Most mainstream loan companies, are not in the business of working with people that have bad credit. Identifying and applying with companies that do, is the first step to getting approved.

Many car shoppers have credit problems end up in an endless cycle of trying to get a loan. Going to all the wrong places and filling out credit applications at dealerships the don't have the resources to be able to help you, can really slow you down and make you even wonder if it's possible for you to get financing.

The way out of all of this is to apply with the company or two that deals with low credit scores every day. I'm referring to online companies that make their entire business of helping people that are in your financial condition.

If you had a toothache, you wouldn't go to a transmission shop, right?

It only makes sense to go to the specialist that deals with the problem that you're facing. So if you have bad credit, the obvious solution is working with companies that specialize in your problem. There are companies that don't even care to get applications from people that have good credit...they just want to help people that have poor credit ratings. That's the business that they are in and if they don't get you approved, then they haven't done their job.

How Can You Buy a Car With Poor Credit

It's really pretty simple and just a matter of knowing what type of lender to use. Not all lenders are created equal and certainly all of them have different requirements that the require to be met in order to issue car credit.

Car loans are readily available for people that have poor credit through specialized lending companies. There are loan companies on the Internet that do a great job of getting people approved that otherwise would only have a shot in the dark at obtaining car credit.

These types of companies are in business for the sole purpose of providing auto financing for people that have poor credit.

If you have difficulty getting anything done at a local bank or local dealership, then these types of companies can be a big relief. Not only can they provide you with good terms and of fast response, they can have your loan arranged in a matter of hours. It only takes a few minutes to get a response for most of these places, and if you use a good source for your loan, you'll probably never try to get approved for a dealership again.

It's very simple and you will find that it is easier to get a lower interest rate and to qualify for more car, when you are able to deal directly with a lender and can avoid the pressures of the car salesman.

Right now, you need to overcome having poor credit and need to focus on arranging your financing, before you set out picking a vehicle. That's not to say that you won't be able to qualify for the vehicle that you have chosen already, but you'll be in a better frame of mind to make an educated decision.

How Can I Get a Car Loan With Bad Credit

If you are wondering how you can get a car loan with bad credit, then this short little article is going to outline a couple different choices that you have. It's not as complicated as you might think that it is, as it is simply a matter of using the right lenders.

Smiles to Frowns: Many people walk into a car dealership with a huge smile of excitement on their face, not knowing that within a few minutes they will be walking right back out the door with a frown. There is just no way to hide the disappointment when you get turned down for a car loan.

Desire: What this does, is takes you from wanting to pick out car that you like, that exact car that you want, and turns you around so that rather than looking for that perfect car, you are just looking to get approved. That's how it works. We want what we can't have and the more that we are told that we can't have it, the more that we want it.

When we are told no: Such is the case with getting approved for car. Each time a dealer tells us that our credit is in good enough, we want that approval even more. It's a trap that gets used against you by the salesman. He knows that he has your attention on a car and that if he makes you feel like you can get it, then when you do you will sign anything.

How To: The easiest way to get a car loan when you have a low credit report score is by applying online. That's the easiest way to get approved without having to go through the hassle of dealing with salesman, finance people and going dealership to dealership.

How Can I Get a Car Loan If I Have Bad Credit

Getting a car loan if you have a bad credit rating to be difficult if you don't know where to turn. Every lender is different. You have to know what type of lender that you need to apply with in order to secure financing. It's not as difficult as it may sound, though.

Most people think that it is really difficult. This is because they've been looking for car credit and all the wrong places. If you've been looking for your local dealership to get your car loan done, then you may have realized that sometimes they just do not have the power to do it. It's really up to the loan companies. The dealership doesn't actually approve you. It's the loan company that does.

Going around the dealership, and dealing with direct auto loan lenders that get people like you approved every day, is the real solution. By dealing directly with bad credit auto lenders, you are able to avoid the dealership interest rate mark-ups and get the real interest rate. Did you know that when a dealer marks up your interest rate, it can add a hundred dollars or more to your monthly car payment? Sad, but true. Getting a lower rate is one of the biggest advantages to dealing with lenders direct, aside from getting a quicker and easier approval.

You can also eliminate the need for an outrageous down payment. Most of the time, good companies online are able to provide you with a car loan with little to absolutely no money down.

How Can I Finance a Car With Bad Credit

Financing a car with a bad credit rating involves knowing a little bit about secondary auto financing. As one lender varies from another and what they will approve, you have to know where you should go in the best lenders that are suitable for your situation.

Sometimes people look for car finance at local dealerships when most of them don't really even specialize in people with bad credit applications. It's funny, because a lot of car dealers advertise that they can get anyone approved. They can usually help people that have marginal credit, but when it comes to serious credit problems, you need worked directly with a lender that knows what they're doing when it comes to secondary car finance. Secondary auto lending is a whole different ballgame than typical auto loans. Fortunately, there are some pretty good companies that know exactly what they're doing. Applying with these types of companies makes getting approved very easy.

Secondary auto financing works very differently from traditional auto lending. Rather than just your credit report and credit score being taken into account, other things become important factors.

The time that you've been employed, your total monthly income are your good credit. Having a bankruptcy on your credit report, or even a repossession isn't as serious of a deal with secondary auto lenders.

So if you've been refused car finance at a dealership, then you should give auto loans online a try. You may be shocked at how much you can qualify for and how quickly you're loan is available.

Hard Hitting Tips For Getting a Better Price When Buying a With Bad Credit

Credit problems affect many people and when it comes to purchasing a vehicle it can be very challenging. Part of the challenge is getting approved, but another challenge that can be even more difficult to overcome is getting through the sales process of many car dealerships.

Chances are, you've noticed the difference in the tone and the way that salespeople act when they realize that you have bad credit. It's not a good feeling to think that you're being looked down upon. The fact is, there are many car salespeople that have bad credit themselves, due to the nature of working in a straight commission based job. So keep that in mind.

Proceed with caution...

One of the first tips that I would give anyone that's looking to buy a car with bad credit, is to go about everything slowly and with caution. Keep your emotions out of the equation and read over everything carefully before signing anything. Take a pocket calculator with you to the dealership. When they offer you a payment amount for a certain number of months, multiply the two to see what you're really going to end up paying for that vehicle. Out of hundreds of vehicles that I've sold or closed the finance on, I've never had one single customer pull out a calculator to do any math! Don't you think that's a smart idea when committing to buy a 10, 20 or 30 thousand dollar depreciating asset?

Don't be intimidated...

Dealerships want to move cars off the lot. Your money or the money from your loan funding spends just as well as anyone else's. Don't let having bad credit make you feel like you're in a weaker position to negotiate the price or any term related to your car deal. Haggle like it's nobody's business but yours and refuse to accept any offer, interest rate or price that you don't feel comfortable with. Even if you feel comfortable with it, ask for a discount.

Know how to ask for a discount...

Why don't you ask for a lower price or a lower interest rate? Many don't know what to say. If that's you, here's a few tips that will surely give you an edge at bargaining time...

1) I like the car and can afford the payments, but I don't think I would be making a smart decision by paying that amount. The total of payments equals XYZ and I don't think that you would think I was very smart if I said I wanted that car at that price. If you can save me $1000.00 off the total of payments, I would think I was making a more intelligent decision.

2) You know, that's a nice car and I can afford the payments, but I think that you would think I was an idiot for agreeing to this price. I understand that you need to make money as you do have expenses like light bills, commissions, etc., but I have expenses, too. If you can help me to save some money, I can help you make some money by buying this car.

3) As a general rule, I don't like to spend more money that I think is reasonable. I appreciate the offer, but this is almost an insult to my intelligence. Yes, I have credit problems and part of that is because I've had more bills than I've had income. The last thing that I want to do is have a high payment that's could be a challenge to pay should something unexpected happen. I'm thinking that you have the power to help me to save money, so what are you capable of doing?

Those are a few suggested "angles" that you can use if you want to save some money on the price of a car. Use them as you wish and hopefully they will give you some ideas.

Remember, the last thing a dealer wants you to have in your pocket is a calculator or an NADA car value book. So, make sure that you bring those along!

Guaranteed Car Loans Online With Bad Credit

If you've been turned down by local car dealerships, you're probably searching on the internet trying to find a good deal on a bad credit car loan. Guaranteed car loans online for people with bad credit are a hot topic that many people are interested in. You can get approved and I can tell you how. First, there are a few things that you need to consider.

First of all, there is actually no such thing as a guaranteed car loan if you:

Are currently in a bankruptcy proceeding that is not discharged or dismissed

If you have IRS tax liens, any financing of any type may be impossible

You can't get a loan if you don't have any income

You have to be at least 18 years old

You have to be a U.S. Citizen, which means you must have a social security number If you have an income, any bankruptcy that you have is discharged or dismissed and you are over 18, then you can qualify for guaranteed approval for a car loan. It's simply knowing where to go to get approved.

There are scams on the internet that you need to avoid. Any website that says that you are 100% guaranteed to get approved for anything is telling you a lie. You simply can't get approved if you're in the middle of a bankruptcy or if you're an illegal alien.

You can get a quick auto loan online through several sources. Arranging your car loan over the internet allows you to have the choice of where you buy your car. As long as you meet the basic requirements and have a job, then a car loan approval is virtually guaranteed.

Guaranteed Car Loan Approval is a Big Fat Gigantic Lie!

Read this little bad boy all the way through and I'll help you out if you're looking for car finance. Let's get something straight here, right now though... There is no such thing as 'guaranteed car loan approval'.

Let me tell you a little story...

In 1998, I was standing in Jacksonville, FL on the showroom floor of a well-known dealership. An old man got dropped off at the car lot by a taxicab and walked in. He said, "I'm here to fill out a loan application to get approved for a car". Odd, he didn't care what car... he just wanted a credit app.

So, like a good car dealer I gave the man exactly what he wanted, a credit application. He sat down, filled it out and asked me to see what I could get him approved for. With the lenders that we had at the time, there was no hope for this guy. He was in the middle of a bankruptcy that hadn't been discharged and he also put on the application that he was unemployed. I was thinking that this guy is either crazy or he's got some sort of issue.

Either way, he was not getting approved for a $1000.00 car with $999.00 down.

I sat down and politely told him that due to his present bankruptcy and not having any income, I was sorry but there wasn't anything that I could do for him. He asked me if I was sure and I said yes. He asked me again if I was 100% certain that I could not get him approved. Once again, I replied with certainty that no lender we had would approve him.

He smiled.

He then pulled out a crumpled up piece of newspaper with an advertisement for our dealership. The advertisement read in clear English, "Guaranteed Car Loan Approval or We'll Give You $1000.00 Cash".

That was one of the few moments that I considered changing careers. This guy obviously needed the money and he was right by any amount of common sense. The ad read in big bold letters. In small fine print at the bottom, it said, "see dealer for details". The nice old man didn't get a thousand dollars, but if it had been up to me, I think he deserved it. The finance manager simply told him that he could get approved if he put down 95% of the purchase price. Not a good feeling. I did pay for his taxi ride back home.

The point is, dealerships that advertise guaranteed car loan approval or guaranteed auto financing are not telling you the whole story. They're just trying to get you through the doors so they can talk you into a cosigner or seeing if you have cash. If they get 10 people through the door with that type of advertising and one of them buys, then it was worth it. It's all a numbers game to dealers.

So, if you have really bad credit and need auto financing, where can you get a real car loan?

There are a few websites that will search through a database of lenders to match your credit history with a lender that will approve you for a car loan with little to NO down payment. This is the closest thing that you will find to guaranteed car loans. If you're in the process of bankruptcy, foreclosure or have no income - you will not get approved. Other than that, you're in good shape.

Getting Auto Financing After Foreclosure

With so many people facing foreclosure and the uncertainty of our economic future in this country, it's great to know that there are lending services that are helping the segment of the population that is suffering the most.

Car loan companies have helped many to take advantage of the recent incentive programs that were funded by the President. There are still people that are suffering from bad credit and are in need of immediate assistance.

People that are suffering from bad credit can find comfort in knowing that there are now lenders that can provide assistance. There is no longer a need for using a dealership that offers in house financing as real car loans, are now easily obtainable.

Rather than you having to hop from car lot to car lot to find a good deal on financing, you can just get matched up with a lender. This saves you time and the heartache of hearing those dreaded words that you've been declined.

Thousand of people all across the country have turned to reliable sources for online auto loans. It's one of the simplest things that you can do to save money on your car purchase, and get approved with minimal effort.

If you have had a foreclosure, many lenders will not look at this as harshly as they do other credit problems. The economy is more to blame for this than you are right now and fortunately there are lending services that understand this. Qualifying is simple if you choose to take advantage of this type of opportunity for auto financing.

Getting Auto Financing After Chapter 7 Bankruptcy

Despite the economic times that we're all facing now, it's good to know that there are lending services that are helping everyday people get into car loans that otherwise would not be able to get financing.

The recent "Clunkers" program that offered government funded incentives for people to trade in aging vehicles, did not provide help to those that are not privileged with good credit.

Even with a Chapter 7 bankruptcy, instant approvals are available for people that normally wouldn't be able to get a good deal on auto finance through typical car dealerships. This is great news for many people that need a car, but haven't been able to get approved.

If you've had a Chapter 7 bankruptcy, in order to qualify for these types of lending opportunities, you have to have your bankruptcy completely discharged or dismissed by the courts. What this means is that the 341 meeting of creditors needs to be completed with no more court dates pending relating to the bankruptcy. If this has been taken care of, then you can look forward to getting a fresh start.

When you deal with some local dealerships, they simply have a hard time getting you an approval for an auto loan because they sometimes are not equipped. They may not have the lending resources in your local area that are available throughout the country for people that are in your situation. Overcoming a Chapter 7 bankruptcy can be a difficult obstacle for some car dealers to overcome.

Getting Approved For Auto Finance With Terrible Credit

Have you had credit problems that are holding you back from obtaining auto financing at reasonable interest rates? The economy has affected alot of people lately and fortunately, there are lenders that are helping people even with terrible credit, get approved and financed for new and used cars online.

The cash for clunkers program implemented by the current administration gave the auto industry a tremendous boost. There still is a segment of the population however, that was unable to take advantage of the program due to low credit scores and the lack of a down payment. Now, there are sources that are helping people obtain auto financing.

There is a tremendous advantage to using these types of services.

First of all, there is no need for having to drive around visiting multiple dealerships to try to find an approval that you can live with. You save money immediately as the lenders that you are specialized in helping people that have been turned down, or not been able to qualify for something that is affordable. Frequently, people that have been told that they have to have a down payment are discouraged about the prospect of getting approved. This is easily remedied by simply being explained how, why and when down payments can be avoided.

If you're in the market for a new or used automobile and are interested in saving money, as well as, getting approved easier with less hassles, online lending services are here to help. There are lenders that don't take no for an answer when it comes to getting you approved, even with terrible credit.

Getting a Lower Interest Rate on a Car Loan With Bad Credit

Normally, when you have credit problems, a higher interest rate on everything that you buy or finance, just seems to be something that we just accept as being a fact of life. Is it, though? Do you really have to pay an outrageous interest rate for everything that you tried to get on finance? Is there a better way? How about with car loans? Is there a better way to get a car loan when you have credit problems and get a lower interest rate, too?

You bet.

If I were to take a poll and asked people that have bad credit if they knew that there were sources available on the internet to get bad credit car loans at better interest rates than those that are found through dealerships, I bet that only 3 in 100 people would have ever even heard of such a thing.

More and more banks, credit unions and major financial institutions have online banking. The secondary lending market, those companies that specialize in bad credit or second chance finance, is catching up. Now, you can get a car loan online easier than you can at a car dealership.

How can that be?

It's because it's where all of the lenders are. All of the lenders in the U.S. just about, are not on the internet and doing business! What this means for you is, if you have bad credit and need a car loan, you don't have to settle for the options that you are offered locally. You can obtain auto financing even with bad credit, right at your home computer.

When there are more lenders to choose from, lenders have to compete for business, which saves you money by allowing you to get better loan terms, including a lower interest rate.