Tennessee Bad Credit Car Loan Services

Auto Financing with Bad Credit in TN

Are you one of the thousands of residents of The Volunteer State with a poor credit history? Do you need financing for a new vehicle but have a credit score (credit score) below 640? If the answer is yes to either or both of these questions then you will be glad to know that there are a number of lenders who work with car dealers to offer bad credit car loans in TN.

There are mainly two types of lenders who offer loans to consumers in the beautiful state of Tennessee with bad credit and they include:

Bad Credit Car Loan Lenders

You first want to realize that these lenders, working through retail new and used car dealers throughout the state, will probably charge you a much higher interest rate (known as sub prime lending) than the rates charged by more conventional lenders such as banks and credit unions (which is usually at or near "prime" rates). The main focus of these sub prime lenders is to help consumers with bad credit rebuild their credit history and improve their credit scores while driving a new or low-mileage used vehicle.

Tote the Note or Buy Here Pay Here Car Lots

These are TN car dealers who are also lenders. Unlike most traditional Tennessee car dealers, they don't follow what many consider to be the "normal" rules of auto financing. 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 car loans in Tennessee without a down payment. They will verify your income and residence while you are applying for auto finance, but recent repossessions (unless with another TN. buy here pay here car dealer) are usually not an issue.

What these buy here pay here car lots will ask for is a much larger down payment, given the average value of the cars they sell. It also means that the annual percentage rate of interest charged by these buy here pay here dealers is usually much higher than what most sub prime lenders would charge. These tote the note car dealers will also 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 history will have no recent positive information.

The bottom line to all this is that if you are serious about reestablishing your car credit and improving your credit score, you should choose a bad credit car loan dealer that specializes in bad credit car loan customers and deals with a broad spectrum of sub prime lenders. We can match you up with these used car dealers in Tennessee should be your first choice for auto financing for bad credit.