Since 1997, Colombus and other Ohio residents have trusted AutoNet Financial with offering excellent financing options. As a leading provider of bad credit auto loans in Ohio, AutoNet Financial can help you get a competitive finance rate from a local new or used car dealer, regardless of your past credit.
Car loans with bad credit in Ohio may very well be the best option for consumers in the Buckeye State with a credit score below 640 that hope for a car loan. This type of lending is known as a special auto finance loan, second chance lending, non-prime lending or near prime lending.
To understand why bad credit auto loans are considered riskier than normal, we must first examine the usual elements taken into consideration by traditional (prime) lenders. These items include the borrower's credit history, credit score, and income. These lenders will also look at the amount of the loan and the loan term as well as the percentage of equity (in the form of a down payment) the buyer is willing to assume. All these factors will be taken into consideration in a traditional vehicle financing and determine whether the finance application is approved or denied as well as what interest rate will be assigned to it.
Although many of these same factors are used in getting auto finance loans from local car dealers, the fact that both the credit history and credit score fall below traditional approval parameters makes the bad credit auto finance arena much riskier from a lender’s perspective – mainly because the majority of the loans made to these customers are considered to be subprime.
With the above process in mind, then, these subprime lenders are normally the best option for those buyers seeking car loans for bad credit in Ohio. On a regular basis, these bad credit auto loan lenders deal with consumers whose credit histories include a record of not paying back debts, an inability to make payments on time, a possible history of bankruptcy and a pattern of payments that includes continuous defaults which point to a possible future of the same pattern of fiscal neglect.
If your credit history includes all or part of the above traits, then you can finance cars with bad credit in Ohio which may be the best way to reestablish your credit and get you back on track for a better credit history and a higher credit score.
Why should you opt for bad credit financing for autos in Ohio instead of other types of loans? Another option, of course, would be to visit a car dealer that specializes in “in house” financing. These “tote the note” or “buy here pay here car lots ” are vehicle dealers who are also lenders. If you visit one of these dealers while shopping for a car and a loan, you’ll find that they usually aren’t as stringent as those lenders that offer loans for bad credit in Columbus, Ohio. They will verify your income and residence while you are applying for auto finance, but recent repossessions (unless with another “buy here pay here” dealer) are usually not an issue.
While the higher down payments (given the book value of the vehicle) and higher interest rates of these car lots are something you need to consider, the biggest downside to this type of loan is that the dealers making them will not report your payment history to the credit bureaus. This means that even if you make all your payments on time, your credit score will not improve and your credit report will not reflect your positive payment history.
The bottom line to all this is that if you are really serious about reestablishing your car credit and improving your credit score, you should visit a web site that caters to car loans for poor credit in Ohio and can put you in contact with a car dealer that specializes in bad credit car loan customers and deals with a broad spectrum of subprime lenders. The web sites that can match you up with these dealers should be your first choice for auto financing for bad credit.
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