Bad credit? You should still try a direct loan
It’s common to try to get pre-approved for an auto loan from a direct lender. Getting pre-approved is a great way to reduce stress at a dealership, but it’s harder to qualify for a direct auto loan if you have bad credit. However, you should still try to get a direct loan. Also, there are other types of lenders you can check out if you can’t get pre-approved.
Direct lenders are the type of lenders that offer pre-approved auto loans. Getting a loan from a direct lender like a bank or credit union can be difficult with bad credit. This is because they tend to place great importance on credit when qualifying applicants.
However, just because it’s less likely doesn’t mean it’s impossible. You should always try to get pre-approved from a direct lender. You may have better luck if you start with your personal bank or credit union. If you are a long-time account holder or a member in good standing, they may be willing to approve you.
Credit unions are generally easier to manage with less than perfect credit, while banks tend to limit their loans to people with good credit. However, you should try to get a direct loan first, as banks and credit unions can usually offer lower rates than indirect lenders.
Although they are likely to be lower, keep in mind that the rates offered to you with poor credit are generally higher than the rates offered to borrowers with good to excellent credit.
What if I am refused?
If you’re turned down for a direct loan, don’t worry. There are lenders available to help you get the car loan you need – and they may be closer than you think.
Subprime lenders work with borrowers with bad credit, and they can be found at many dealerships across the country. These lenders rely on other factors besides your credit score to approve you for a car loan, which means you have a better chance of qualifying for the loan you need.
Typically, subprime lenders ask for documentation that proves you meet their lending criteria. These documents include:
- A valid driver’s license
- proof of income
- Proof of employment
- Proof of address
- Evidence of a working phone
- A list of five to eight personal references
Once you have gathered all your documents, it’s time to go to a dealership to apply for the loan you need! Since dealerships don’t always advertise their special financial services, how do you find the right place to go? With the help of Auto Express Credit!
Find the reseller you need
Here has Auto Express Credit, we work with a nationwide network of specialist dealers who help people with less than perfect credit obtain new and used car loans. We’d love to help you find a dealer to work with in your area.
To get started today, simply fill out our quick and free car loan application form. There’s no obligation to purchase and it only takes a few minutes, so you can start with confidence now!