Loan Products

Did you know that even with bad credit, you can still secure a car loan? There are many lenders with comparable rates. Here are some tips.

Deciding When to Finance a New or Used Car

People with bad credit have both good and bad benefits. While the disadvantage is when loan rates may go over 20% and monthly payments are unaffordable, they can cancel loan application. In contrast, the advantage is having a 24 month period to improve credit rating and score with hopes to get better rate offers after bankruptcy or repossession.

Get Approved with a Subprime Lender

Since buyers with bad credit are typically rejected by prime lenders, they go to subprime lenders. The process is as follows:

• most buyers are easily approved by subprime lenders
• lenders have many different auto financing choices
• buyers go to loan brokers to find lenders
• loan brokers have close dealings with most lenders throughout industry
• loan brokers find and negotiate deals using buyer’s 500+ credit record
• loan broker finds three to four trustworthy lenders
• Each lender gives quote to loan broker
• loan broker forwards all quotes to buyer.

These quotes contain all necessary facts such as: estimated loan terms, monthly payments and interest rates, etc. In the end, buyer is free to accept or reject quote because there is no obligation and he may start process again until the best rate is found.