Most people have not heard of pre approved bad credit car finance loans to buy car when you have some personal credit issues in the past that is affecting for FICO score at the moment. You can get these private party car loans from a bank, credit union, online car loan lenders etc, in fact any instutition other than the car dealerships or car lots you are buying the vehicle from, hence the name. Do you know that auto financing from the car lot dealerships will be charged a commission rate which means you have to pay more and higher car loan rates compared to getting approved car credit on your own from the banks?

Afterall, the car dealerships are selling cars and not lending money, that is why they still need to liaise on your behalf to seek financing for you to buy car with bad credit. Sure, it is more convenient to do everything at one stop and if you get an approved auto financing it can mean savings over a thousand dollars or even make the deal whether you can buy car with bad credit or not.

Car Loans With Bad Credit From Online Car Loan Lenders

There are several important advantages to buying automobiles on car loans with bad credit from third parties rather than from the car dealer. We are not saying loans from car dealerships are entirely bad, just that it may not be so suitable for everyone. So just read on to decide whether you should get a credit union auto loan or not. Aside from the mentioned commission, usually you cannot get to compare and choose the best car loan rate since the car lots only work with one or at most two lenders. Compare that with the number of online car loan lenders you can choose to get quotations from. Furthermore, many of such bad credit car lenders work specifically with people that are refused car credit from the dealerships’ loan partners. You can cut down a lot of time spent searching for the best auto loan rates to buy car with car credit since you do not have to submit an application that is likely to be refused.

Beware Of Bad Credit Auto Finance Loans Above 20%
If your credit is not so good such as due to a high debt-to-income ratio, you need to consider carefully whether to go ahead with bad credit auto finance. The question here, after you get approved car credit to go shopping for your dream vehicle at the dealerships, is the amount of interest fees you need to pay every month on your bad credit car loan for the next 60 months.

There are many predatory car loan lenders and buy here pay here car scams going on where bad credit car loans were approved to borrowers that obviously cannot afford to pay for the monthly repayments at the prevailing 20% auto loan rates. So in the end, these people who happily thought they could buy car with bad credit auto finance end up losing the vehicle as well as add on more debts after a few months due to bank repossession. Just be warned here so that such car loan scams do not happen to you in future. If you are sure you can now afford to repay the higher rates charged by the bad credit car finance, go ahead with your purchase.

Avoid No Credit Car Loans

Instead of looking for no credit car loans lenders, apply with the companies that explicitly ask for your FICO credit score. Do not think that you can buy car with bad credit on low interest car loans if the lenders do not do a credit check on borrowers. On the contrary, you are guaranteed to be charged the highest bad credit auto loan rates legally allowed with such companies since they justify the terms on higher lending risks. Aside from your FICO score, most banks and credit unions will require you to be 18 years old and above, have a social security ID, and earn a minimum income of $418 dollars per week. These are bare minimum requirements that you should meet before thinking of buying your own vehicle. If not, you are better off renting an automobile or continue to take buses and trains. Do not forget other car ownership expenses such gas and insurance for car. If you only have temporary employment or no proper income statements, then it will be difficult to convince the lenders to grant you bad credit car finance loans.

If you are refused car credit by banks or credit unions due to any of the above reasons, but you really need to buy a vehicle to do your work, then the next alternative is to look at the online car loan companies that specialize in bad credit car financing. Many people are able to buy car with bad credit due to loans from such sources although the rates can expected to be several percentage points higher. You will have to pay more than normal consumers with above 700 FICO scores but that does not mean you should not try to compare at least three quotations from these poor credit car finance firms in order to get the best car loan rate currently available to you. There are bound to be several of these lenders competing to offer you a bad credit car loan, so take your time to get and compare quotes from their websites. By spending some effort to do car loan comparison shopping, I am sure you can get to buy car with bad credit with lower than 15% auto loan annual percentage rates.

In a lot of cases you may need to find a car online to purchase on a payment plan from the original owner. This might be a painstaking and tedious process but if you get a car this way on a payment plan in most cases you wont have any interest to pay. The only real downfall to this is finding a Car Shipping company to take care of the Auto Transport work for you. There are various Car Transport companies out there if you go this route, I would advise starting with www.VehicleShipping.org or www.VehicleTransport.com whereas they seem to have the best deals.