Car Loans for People with Adverse Credit | VAL Blog

Car Loans for People with Adverse Credit


If you have bad credit, you may have been turned down for a car loan by a bank or finance company. Banks and traditional financial institutions are less likely to approve you for a loan if your credit is poor.

A person can have bad credit for a number of reasons. You may have bad credit because you just couldn’t keep up with bills after a job loss. Maybe you were faced with huge medical expenses that destroyed your credit. You may have endured a bankruptcy or foreclosure, or you may have had a vehicle repossessed. Any of these things can take a person’s credit rating into the 500s like an anchor sinks to the bottom of a lake. Things happen in life, and regardless of how you ended up here, you can start to rebuild your credit today.

Car Loans for People With Adverse Credit Car Loans for People with Adverse CreditMake a budget and stick to it. Your credit cards and loan payments are reported to the credit bureaus, but your utility bills usually are not so make your credit cards and loan payments a priority in order to build your credit. Obtain a secured credit card, and then pay the card off every month. If you can pay more than the minimum payment, and always pay early or on time, you can watch your FICO score grow by the month.

Apply for a car loan with a company that specializes in loans for people with adverse credit. Though the interest rates will be higher than a standard loan for a bad credit car loan, you can build your credit by consistently paying your loan payment on time every month.

Before the economy tanked, banks and finance companies would sometimes offer loans to those with bad credit. Though these subprime loans came with a higher interest rate than standard loans, the borrower could be approved. However, over the last few years, credit has become more difficult to get. Banks and finance companies are much less likely to offer subprime loans to individuals with less than stellar credit. You still have options, though.

Buy Here Pay Here Lots

You can always purchase a car from a buy here pay here lot, but the drawbacks may outweigh the benefits in doing so. First, you will likely pay outrageous interest rates. Next, your choices are very limited when you deal with buy here pay here lots. If you have bad credit, the dealer may offer you only one or two choices. The cars offered on buy here pay here lots often have very high mileage, too. Some are in bad shape. The likelihood of getting a good, reliable car and a fair deal when buying your vehicle from one of these lots is nil.

If you are late on a payment, you may not be able to start your car. Many buy here pay here lots connect a device to the ignition switch. Between the ignition device and a GPS unit, the dealer can find and disable your car. An unscrupulous buy here pay here dealer may disable your car if you are even a day late – so be careful when dealing with these lots.

Adverse Credit Lenders

Another option for those with imperfect credit is applying for a loan with a lender who specializes in working with individuals with adverse credit. You can choose the car you want, and then obtain the loan from a lender who will work with you.

Valley Auto Loans

Lending companies that specialize in adverse credit loans provide car loans to those who have had some credit problems. Valley Auto Loans makes it easy to find the right lender for your needs. We are a clearinghouse for lenders who provide loans for those with adverse credit. We make it easy for you to find the right lender because we maintain a database of over 1000 companies. Valley Auto Loans finds lenders willing to take a chance on you! That is our specialty.

Fill out our online application and let us find a lender to finance your car. You can drive a reliable vehicle and rebuild your credit as you pay off the loan. If you have a high interest car loan, Valley Auto Loans can help you find a lender to refinance your loan. We do the legwork for you. Just fill out one application to be considered by a range of lenders. Valley Auto Loans is here to help you finance your next car.

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