The bad credit approval process

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Getting a car loan when you have bad credit doesn’t have to be a difficult process. However, getting an auto loan with good credit is different. For starters, not all lenders are willing to help bad credit borrowers finance the vehicles they need.

Good credit versus bad borrowers

The process of obtaining auto credit with good credit is very simple. Lenders can see through their credit reports and their credit score that the borrower is used to being responsible when it comes to managing their credit accounts.

Like all borrowers, those with good credit still have to pay the taxes and fees associated with purchasing a vehicle. However, because of their credit, they can usually drive to a dealership, choose a car, sign the paperwork, and take delivery without a problem.

As a borrower with bad credit, there are a few extra steps in the financing process. Typically, this is because the credit rating and reports of a borrower with bad credit reflect past credit problems, which makes lenders more wary.

However, the good types of lenders understand that an applicant is not limited to their credit rating. Subprime lenders specialize in helping people with less than perfect credit. They look at other factors besides credit that show them the stability of a borrower, as well as their ability and willingness to successfully complete a car loan.

The Bad Credit Auto Loan Approval Process

When you have bad credit, the process of getting an auto loan is almost the opposite of getting good credit. With bad credit, it doesn’t start with choosing a vehicle – it comes last.

Instead, you should focus on finding a lender who is ready to approve you. So your first step should be to visit a dealership with subprime loan links.

When you work with a subprime lender, you are not in direct contact with the lender. Instead, you go through the CFO or salesperson of a dealership. Once there, you must provide proof that you meet the loan conditions.

These terms vary from lender to lender, but you usually need to provide:

  • A valid driver’s license
  • Proof of income
  • Proof of address
  • Proof of a working phone
  • A list of personal references
  • A deposit

Providing these elements gives the lender a more complete picture of you as the borrower. This allows them to see past your credit score and determine if your bad credit is situational or usual. If you meet all the conditions, one of these lenders can probably approve you for a loan.

If you are approved, the lender submits what is known as a call for payment to the dealer which shows the maximum monthly payment and interest rate for which you are approved, along with any other necessary details. This lets you know which vehicles at the dealership you are eligible for.

You can then choose the one that’s right for you, sign the documents, and take delivery to complete the process.

Find the dealer you need

TO Auto Express Credit, consumers often contact us to ask if they have been approved for a loan or what amount they qualify for. We cannot answer these questions because we are not a lender. What we can do is avoid the hassle of finding a reseller who works with subprime lenders.

It can be difficult to tell special finance dealerships apart from the crowd, especially in a busy metropolitan area that seems to have an auto dealership on every corner. So instead of spending precious time and gasoline driving around town looking for a dealership who can help you, let us do the research for you.

Simply complete our quick, easy, and free auto loan application form, and we’ll do our best to connect you with a dealership in your area who has the loan resources you need. It only takes a few minutes and there is no obligation to purchase. Don’t let bad credit get in your way, start the process now!


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