AutoApproved was formed by a family that has been helping people obtain automotive financing since 1989. We are the best when it comes to matching you with the most competitive finance terms, regardless of your past credit history. Read our car loan testimonials.
Our bad credit car loan application is designed especially for auto, car and truck buyers with credit problems, no credit, or unique sub prime auto loan requirements. We also are continually developing articles to help understand auto loans and financing.
One of the most common questions we receive is:
Is it actually possible to get an auto loan with a bad credit score, even a very bad score, or maybe even no credit at all? If so, what's the catch?
Thousands of people with bad credit situations purchase vehicles every day, so it's definitely possible! The reasons are pretty simple.
First, banks are in the business of issuing loans. In a down economy, where more and more people are experiencing credit challenges, banks must become less strict in their lending requirements in order to continue business. A bad credit auto loan may not have the same interest rate as a car loan on great credit, but banks and dealerships have had to become more competitive because the number of individuals with "perfect credit" is dropping year after year.
Second, a car loan is, by nature, a secured loan. This means that your car is collateral, and banks are much more willing to finance an auto loan because of this. While they won't admit it, banks realize that a low credit score doesn't mean you won't pay your bills. In some cases, an individual who has recently filed bankruptcy is in a better position financially to make their payment than someone who has a higher credit score! They also know that a car loan is also a great way to improve your credit. If you have a good payment history, a bank will want to maintain your business, hopefully giving you more loan opportunities in the future because of your good history.
Finally, the car business is very competitive. In a new car franchise, it is sometimes more important to sell a car than it is to make a huge profit on that car. Car manufacturers pay dealers incentives based on the number of cars they sell, not what they sell them for. The more cars sold, the larger the incentives become. Some dealers are willing to sell the car at cost, or even below cost, which makes financing the car much easier. Some dealers will even finance the car in-house, giving people with severe credit problems loan opportunities that they wouldn't have any where else.
That's why when we say we can help you get financing regardless of your past credit problems, we mean it!
We have been in automotive finance since 1989 (online since '99), and we understand how the system works, and how it has changed over the years. Our application process is designed to give you the a chance to evaluate your best options. It only takes a few minutes to apply online, and leave the rest to us!