No one ever wants to be in a situation where they have a bad car credit loan need, but sometimes it cannot be helped. Layoffs and unexpected medical bills can create what is known as situational bad credit. Consumers that find themselves with this type of credit still have a decent chance of obtaining a car loan.
The first step in the process is to review your credit history and FICO score (the most common type of credit score). By doing this, you will know what kind of shape your credit is really in. A popular site to visit to gather this information is http://freecreditreports360.com. You can also go to each credit bureau individually (TransUnion, Equifax and Experian) and request a report from each one but unlike the reports from freecreditreports360, these will not contain your credit score unless you request it and pay the additional fees.
Once you have studied your credit history and have all three of your FICO scores (chances are that each credit bureau will generate a different credit score for you), you can determine if you have a bad car credit loan need. In this case, your credit score is the most important determinant for an auto loan. Generally speaking, a score of less than 640 puts you squarely into subprime loan territory, while a score above that line will likely qualify you for a near-prime or prime loan, depending on your time in the bureau (how long you have been using credit) and, specifically, how you’ve paid on your car loans.
If you are a candidate for subprime finance, the next step is to determine how you want to apply for a loan. At this point, you need to know that many franchised car dealers don’t bother with subprime auto loans. These loans are much more complex to arrange than traditional loans and many dealers don’t want to bother with them.
Your best chance to satisfy a bad credit car loan need is to apply online at a legitimate bad credit car loan web site. In most cases, you can tell a legitimate site from a bad one by looking for the Better Business Bureau seal. If the site has one, it tells you that the company adheres to the ethics of the Bureau and responds to any customer complaints by resolving them in a timely manner. Also look for a credit application that is SSL-encrypted. This means your personal information is secure when you send it to them.
Tags: Car Credit