About Bad Credit Auto Loans

Generally speaking, it is harder to get a car loan, with a down payment or with no down payment, without a previous lending history than it is if you have a bad credit history. Many special finance lenders are willing to work with people who have had past credit problems, but many lenders are not eager to be the first to give a person a car loan since that consumer doesn't have a previous "track record."

National lenders base their lending criteria on your previous history, whether good or bad. If you have no previous borrowing experience, it can be frustrating when trying to find a lender to extend financing to you. Through our network of dealer partners, you have the best chance of getting approved even if you are a first-time borrower, although a down payment is frequently required if it is your first car loan.

Establishing Credit without a Cosigner

First time buyers can opt for a secured credit card with which to establish a payment history. A secured car is much like a debit card linked to a personal bank account. You have to deposit a sum of money with the card issuer and they will then extend you an equal amount of credit.

Unlike a savings account, when you use the secured charge card and remit monthly payments, the transaction history shows up on your credit report. This allows you to establish a history of timely payments, and thus establish your credit report. Many local banks offer such cards and anyone can improve their rating by achieving a good payment history by successfully using one.