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Car financing and credit report

We know how difficult it is to manage overdue collections or unresolved debts. When it comes time to purchase an automobile, approval through a traditional dealer financing program can be difficult, if not impossible, due to negative marks on your credit report.

But if you’ve paid off your debts, there’s good news. You can still get approved, and depending on your situation, you might be able to get financing just like you would if you were working with a traditional lender. bad credit takes many forms, and some are more negative than others. Auto financing exists for all types of credit, and our team is here to give you more information to help you in your research.

Types of bad credit

First of all, there are two types of bad credit: situational and usual. And the biggest problem for car buyers is finding a dealership that will distinguish between the two.

Situational (AKA “Good-Bad Credit”)
When you have situational credit problems, they usually stem from a life event that caused a change in your economic situation. These can be a range of things:

  • Job Loss
  • Divorced
  • Sudden illness or injury
  • Bankruptcy for business bankruptcy

And sometimes it’s a mix of those situations. So what you need to do is find a lender which will take into account how you managed your finances responsibly before the event and how you have behaved since. If you’ve made an effort to partially or fully pay off previous accounts, a car loan approval could go just as smoothly as if you had good credit. If you want, you might even be able to get a new car with little to no money down.

Usual (AKA “Bad-Bad Credit”)

If you have a history of bad credit or a habit of not paying your bills on time, you will fall into the category of bad credit history. Behaviors typically include:

  • Overdue accounts, ranging from credit cards, bills, and court-ordered orders such as child support.
  • Several bankruptcies
  • Repossessions not associated with bankruptcy
  • Write bad checks

If you’ve done these things, it doesn’t automatically mean you can’t get a loan. But, you will have a more limited selection of what you can buy, and it will probably be a selection of used vehicles. On top of that, you might need a minimum of $500 to $1,000 for a depositor a vehicle (with equity) to trade.

Getting back on track

Just because you’ve had problems with your credit in the past doesn’t mean you can’t fix it. Get back on track with a bad credit auto loan. Auto Express Credit can help you achieve this. Once you have completed the quick and simple online application, we will find the dealer who can help you. What are you waiting for? Do it today.