A special finance car loan can be a smart solution for people with bad credit, poor credit, no credit or even bankruptcy. Having a bad credit history can seem like a huge obstacle when trying to finance a new or used vehicle. But if you approach the process in the right way, you can avoid much of the stress involved in applying for a special finance car loan.
The first and most important step is to obtain a copy of your credit report (credit history) and your credit score from each of the three credit bureaus – Experian, Equifax and TransUnion. You can either contact each bureau individually or go to http://freecreditreports360.com and receive all three at the same time. If your credit score is less than 640, a special finance car loan is usually your only choice, while if you thought you had poor credit and your score is 640 or above, you may actually qualify for a prime or near prime loan.
The reasons for poor credit fall into two basic categories: situational bad credit and habitual bad credit. Either one of these scenarios can result in a bankruptcy or repossession showing up on a credit report. The difference is, situational bad credit can be caused by job loss or high medical bills while habitual bad credit results from someone rarely paying any of their bills on time.
Special finance car loan programs are designed for people that have less than perfect credit and these loans enable them to obtain financing for a vehicle at fairly affordable interest rates – at least when compared to “buy here pay here” or “tote the note” car lots. These loans enable customers with situational bad credit to reestablish their car credit while improving their FICO scores.
The best way to obtain a special finance car loan is through an online site that specializes in credit repair. While going to your local dealer might seem to be easier and make more sense, not every local car dealer is equipped to handle customers with situational bad credit. Rather than wasting time driving from dealer to dealer, it is smarter and easier to go online and apply at one of these sites. The legitimate ones will belong to the Better Business Bureau – thus ensuring your satisfaction – and have SSL-encrypted credit applications that ensure the security of your personal information.
to get their car financed without the stress of credit issues. With the network of subprime lenders, you can get low interest rates vehicle loan as compared to other lenders without credit check. Above all, it can also improve your credit score.