Bad Credit Auto Loans – Questions and Answers

  • Font size: Larger Smaller
  • Print
  • Report this post

Question Submitted by Michael

I will be honest I have a bad credit rating having had some issues with re-paying loans in the past. However I have learnt my lesson and I am looking for someone who will give me a second chance.

 That being said I have heard some real horror stories regarding bad credit automobile lenders. I am looking for some advice to try and get a good deal even with my bad credit score. While I realize I will be paying a bit more interest on my loan than prime lenders, I want to try and steer clear of those astronomical interest rate loans where you end up paying back 3 times more than you borrowed. Any tips or advice would be appreciated.  


There are so many bottom-feeders out there, that are ready to pray on you with your bad credit, and take advantage of your unfortunate situation.

These horror stories regarding auto credit loans gone wrong which you are referring to in your question are often because these auto credit lenders say something, that sounds amazing, but then the fine print says something completely different.  Add “astronomical” interest rates to the mix and you are bound to expect repeated calls and threads of repossession when you are a few days late on repaying your auto credit loan.  

As a general guideline be more wary of auto credit lenders that insist you must buy your new vehicle through their partner dealerships.  As you can imagine when the dealership partners with an auto credit lender the dealer will get a kickback, which is a payment made to the dealer facilitating the transaction. However you will end up paying for this as the “fee” will be concealed in the price of the vehicle.

How to stay away from bad auto credit loans:

Option 1: Banks and credit unions

Your first step will probably be to apply for automobile financing through your local bank or credit union. Banks and credit unions are historically the best options for obtaining automobile financing, but it can be difficult to get an auto credit loan approved through them, unless you have a very good credit rating.

You mentioned in your question you have a bad credit rating so likely option one is not going to work for you. What I am going to say next is something you probably don’t want to hear but possibly there is a reason why the banks declined your application for a credit loan? It is always a good idea to rethink your priorities and try to pay cash for something you want. Now that I got that off my chest I realize it is not always a feasible option to everyone.

Option 2: Finding a good bad credit lender

Finding a good bad credit lender is easier said than done. However I too have struggled in the past with a bad credit rating and can sympathize with your situation. The good thing is from experience I can recommend you a good bad credit auto lender.

Auto Credit Financial is the exception

Auto Credit Financial is the exception when it comes to bad credit auto lenders. They offer affordable automobile financing options with reasonable interest rates. It is extremely rare to find a bad credit lender that will report your timely monthly payments to credit unions yet that is exactly what Auto Credit Financial does for their customers and that is how they helped me to improve my credit rating.

If no credit union or bank will help you to get automobile financing and you cannot afford to pay cash for what you want Auto Credit Financial is your best bet when it comes to “safe” affordable auto loans. They have been in the business for years with a proven track record. You can check out their website here. Remember responsible lending and timely repayments are the key to improving your credit score. Good Luck!





©Mark Hergert
Last modified on
in Bad Credit Auto Loan Hits: 2707
Powered by EasyBlog for Joomla!

What's My Payment?

Down Payment($):
Auto loan amount ($):
Your Credit Rating:
Interest rate (%):
Auto loan term (months):

Credit Information Before You Buy


After years of delays, the credit industry finally agreed to give consumers access to their personal "credit scores." This is important, because lenders use credit scores to determine who to give credit to and at what rates. Knowing your credit score can be empowering,If it's low you can take steps to improve your credit worthiness and if it's high you may be able to use it as leverage when shopping for your next car loan.