Auto Financing For People With Low Credit Scores - Where Can You Get Approved

There is nothing as frustrating as needing to buy a newer car, having the money to pay the payments each month, and being told that because you have a low credit score, you won't be able to get approved for a loan. Having the ability to pay for something, but having a credit report that stands in your way, is a serious challenge to overcome.

So where can you get approved for a car loan if you have a low credit score?

There are some companies that specialize in bad credit auto loans for people that otherwise would not be able to get approved anywhere else. Auto financing companies that deal with bad credit exclusively, are the best choice if your score is low and you've had problems with getting a loan through a mainstream lender. Banks and credit unions are very stringent right now when it comes to offering credit, so you have to go where the "money is", so to speak.

The fact is that sub-prime lenders can offer you better terms than a major bank, because bad credit is what they have designed their business around. It's not a major obstacle for them to have to overcome. They don't have to "pull strings" for you to get your loan approved. They simply accept your application and based on your monthly income, approve you for a specific loan amount that you can use to purchase a car.

Having your monthly payments based on what you make each month, has significant advantages that you might not know about. You see, dealers will inflate your monthly income on your credit application, so that you can qualify for a higher payment and thus, they can sell a car for a higher price. When you work with a lender that will base your approval on your actual income, you are not going to be getting in over your head with a payment that you can't afford.

So seek the right lender for your credit situation. If you have a high credit rating, then try for the major banks and loan companies. If you have a low credit score, you'll be better able to obtain a car loan through an auto loan company that specializes in working with people that have bad credit.