When a person has bad credit, and the time comes that they must purchase a vehicle, they are often afraid that they will not be able to qualify for a loan. They are aware that if they apply for auto financing through their local bank or credit union they will likely end up with a rejected application. Traditional loan providers typically require that a person have a good or excellent credit rating before they will agree to fund a loan. This being the case, you may be surprised to know that there are auto dealerships who specialize in the funding for individuals that need bad credit car loans. Instead of going to the bank to get a loan, you go to your local dealership.
Buy Here Pay Here
You should begin your search by looking for subprime lenders and auto financing companies who specialize in bad credit auto loans. Depending on your credit score, these lenders will either approve your loan directly or send you to a specific car dealer in your area who are dedicated to financing bad credit auto loans.
To find a dealer who specializes in the funding of bad credit loans, you should look for a dealership that is advertising with slogans similar to “we approve everyone” or “we accept all credit scores.” These dealers prominently advertize that they fund bad credit auto loans. You can usually find these dealers on the radio or in the Sunday newspaper. The dealer will offer to finance you, as long as you purchase a vehicle from their lot. The dealer essentially becomes both the seller and banker and is often referred to as a buy here, pay here dealer. It is important to make sure that the dealer you purchase your car form reports your payments to the credit bureaus so that you can begin to re-build your credit.
Auto Finance Specialists
Another option is to apply for a loan through an auto finance specialist company such as BlueSky Auto Finance. When applying through the BlueSky website, you will be notified immediately if you have been approved from a direct lender. If appoved in this manner, you will then be allowed to shop like a cash buyer. In the instance that you are not immediately approved from one of BlueSky’s direct lenders, your information is sent, if available, to a dealership in your area who works with bad and no credit clients. The dealer will then contact you to visit the dealership and discuss your financing options. In either case, you are not locked into any contract in applying through BlueSky Auto Finance. We merely show you what options are available to you.
For more information in applying for auto loans through BlueSky Auto Finance click here.