The lowest interest rates and guaranteed approval are often times reserved for car buyers with high credit scores, but the use of a special auto finance loan can benefit people with credit problems. We at AutoNet Financial® understand that a steady income and a positive credit history are not criteria that every car buyer can meet. There are many people who have bad credit and need a car loan to help them buy their ideal vehicle, which is where our services come into play.
Applying with us allows people with bad credit to benefit from special auto financing services, and have the best chance to get approved. We have nationwide dealers that specialize in high-risk car loan financing, and all you have to do is apply today.
Qualifying for Special Finance Loans with Subprime Credit
It's becoming trendy for people to search for special finance loan deals from their local lenders, especially when you have an average credit score below 640. This is because special financing deals are designed for consumers with subprime credit. Those who apply for bad credit auto loans have a hard time getting approved by banks, credit unions, and lending companies due to how high the risk the loan agreements are.
That is why we suggest that people apply with us, as our dealerships are aware of the many consumers that have fallen into the higher risk categories due to the economy. Our nationwide bad credit car dealers are more lenient in their lending process when offering special auto loan for applicants with credit problems. All we ask is that our costumers meet the following requirements:
- Provide a monthly income of $1,500/mo
- Be employed or produce a stable income
- Have a drivers license and auto insurance
- Be a resident of the United States or Canada
- Prepare a down payment or equity trade-in
Meeting the stipulations listed above can easily help you qualify for financing, but these loans are not perfect. One of the main disadvantages are the higher interest rates that come along with subprime vehicle loans. These rates are a result of low credit scores, as well as a way to account for the risk that comes with borrowers.
Other Special Finance Companies
AutoNet Financial® is not the only special finance service that people can use apply for subprime car loan, as there are other dealers that are available. In fact a number of people seek out the help of three specific lenders which include:
- Buy Here Pay Here Lots
- In-House Financing Dealerships
- Tote the Note Dealers
These are all different types of lenders they work in business of special finance deals, and catering to those with very bad credit scores. Certain people choose these dealerships because they can offer guaranteed approval and offer auto financing with no credit check to people with ease. This is due to their ability to offer their own loan agreements without the help of bank or finance company, which means tote the note lenders can provide their loan service to whoever they choose. However, the downside to working with such dealers is the fact that people have to endure:
- Extremely high interest rates
- Expensive monthly installments
- Large down payments
- Having their vehicle repossessed or disabled for missed payments
- No chance of credit improvement, despite timely payments
The following reasons are why our finance specialist choose not to always recommend the use of such a service. On the other hand if you really need a car right way it may be a good idea to look in these services.
The Use of a Cosigner with Financing
A number of people like to look into using a cosigner to help them qualify for auto financing. This is usually because they have bad or no credit and their chances of being approved for a loan is very slim. Therefore, the use of a cosigner can help you with approvals from a lender, despite you're less than perfect credit history.
Some people they feel they can use any family member to sign onto auto loan financing contract, but that is far from the truth. Applicants should make sure that their cosigner has:
- Great Creditworthiness:
- Most lenders prefer cosigners to have a good to excellent credit score to help improve your chances of approval. Cosigners with credit scores at 700 or above are seen to be more financially responsible and will their bills on time.
- Proof of Income:
- A cosigner will be held responsible for making payments on your loan if you are unable to do so. Therefore, it's important to have pay stubs or income taxes if you're self-employed.
- Reliable Employment and Residency:
- Having a cosigner that is deeply rooted in the community with a stable case of employment and residency is very important.
If your cosigner meets the necessary requirements you can receive the benefits that come with special car financing by lowering the interest rates. Therefore, if you're suffering from a subprime credit score it's a good idea to try and employ some help from a cosigner.
Applying Online for Special Vehicle Loans
A few things to remember when applying for bad credit auto financing is that you will most likely need a higher down payment, trade-in, or cosigner. Any of these thing helps assure our dealers that you intend to pay the car loan back because you have money invested. Special finance car loan may be the only option available to consumers with a bad credit history, or no credit at all. The positive side is that people can get the vehicle they need quickly without having to wait months or even years to rebuild their credit.
