Much of what bad credit car loan shoppers in the San Joaquin Valley read on the web is just not true and we find ourselves constantly needing to set the record straight when Bakersfield applicants call us looking for car loans with bad credit
Bakersfield Car loans with really bad credit
Web sites such as www.autonetfinancial.com have helped thousands of B-town applicants just like you repair your auto credit. By filling out our online bad credit car loan application and avoiding a tote the note dealer, you can begin a new chapter in your financial life by getting approved at one of our affiliate dealers for a second chance auto loan. By doing this and paying the rest of your obligations on time, you will be able to raise your FICO scores and reestablish your auto credit.
We also want to make sure that the residents of Bakersfield make the right choices during the loan process because if a mistake is made at this time, it could result in repossession later on. Once this happens, the only remaining choice for most Bakers buyers is a tote the note dealer. A repossession also means that rebuilding your auto credit has to be put on hold for at least a year, since most lenders that offer auto loans for bad credit will only consider approving applicants with a repossession that’s more than a year old.
And while the term “expert” is used rather loosely in the automotive business, we do consider ourselves to have had a great deal of experience with Bakersfield bad credit car loans. With that in mind, we think it’s time to throw away some of the false ideas that are always circulating around the internet concerning the second chance auto loan process.
These statements, by the way, were taken directly from web sites and blog articles.
Wrong statement #1 – Finding a bad credit lender is easy
Statement – “Finding a bad credit auto lender is simple. When buying a new or used car, the auto dealer may offer bad credit financing, or refer you to a good lender. Even so, car buyers should consider arranging their own financing. Bad credit auto loans are tricky, and some lenders will take advantage of you. For this matter, it helps to choose a good lender and know your available options.”
Fact – Finding a bad credit auto lender in California’s Country Music Capital is anything but simple. Most bad credit auto lenders only do indirect lending through franchised new car dealers. Finding a bad credit car loan lender that lends directly to the consumer is very difficult. HSBC, one of the few subprime lenders that participated in direct lending, pulled out of the U.S. market over a year and a half ago.
Wrong statement #2 – A 640 FICO score may get you a prime interest rate
Statement – “Some auto lenders classify sub prime borrowers as persons with scores below 640. On the other hand, another lender may qualify a borrower with the same score for prime rates.”
Fact – The threshold for subprime is generally recognized to be an “auto enhanced” (weighting the score for prior auto credit) score of 640 or less. Between 640 and 720, you may qualify for near-prime rates, while anything over 720 to 740 usually puts you in “prime” territory. Very few people in Bakersfield will qualify for the best rates with a FICO score of less than 720. They may get financed by a prime lender, but their rates will be higher than the “most qualified” customers.
Wrong statement #3 – You can shop around for the best bad credit interest rate
Statement – “Making comparisons is a surefire way to get approved and find the best auto loan rate. Auto lenders qualify applicants for varying rates. If you have bad credit, failing to shop around and obtain multiple rates will cost you more money. For example, a dealer’s finance company may charge an interest rate of 10%, whereas a credit union may charge the same applicant 8.5%. The percentage difference could save you $50 – $70 a month.”
“The best way to compare rates is to visit an online auto loan broker site. Request a no-obligation quote, and wait for a response. Each quote received will include details such as qualifying interest rate, loan approval amount, loan term, and estimated monthly payment. Review the quotes carefully, and pick the lender that offers an affordable deal.”
Fact – It isn’t possible to rate shop a bad credit auto loan interest rate in Bakersfield or anywhere else outside the San Joaquin Valley since most subprime auto lenders only do indirect lending. You should certainly check with either the Star Energy or Kern Schools credit union to see if you might qualify for one of their loan programs, but even though their criteria might be more flexible, very few credit unions actively loan in the subprime sector. In addition, the interest rates being discussed (8.5% and 10%) are nearly impossible to find if your credit score is below 640.
As we see it
The bottom line: don’t believe everything you read, even if it is on the internet. If it sounds too good to be true, then it probably is. Think about it.
Here at Auto Net Financial we specialize in placing Bakersfield and other San Joaquin Valley customers with bad credit with dealers that can help them. These affiliate dealers are knowledgeable and will treat you with the same high respect that they treat every customer that walks through their doors. If you have any questions that our web site can’t answer, feel free to call us at our toll free number.
So if you are serious about getting your credit back on track, why not begin a new chapter in your life by filling out our bad credit car loan application now.
