What Types Of Lenders Are Out There?

  1. Latest Auto Loan Articles
  2. What Types Of Lenders Are Out There?
There will be three different lenders available when trying to accomplish the goal of buying a poor credit car and they will have very different methods that will hopefully help you accomplish that goal.

Types of Lenders for FinancingBefore you take any hasty actions make sure that you know about each of the lenders and figure out which one will be the right one for you. It does take some prior thought and planning so do not rush through this process or else you could quickly find yourself in a sticky situation. It may sound cliche but knowledge is definitely power and in this case that knowledge will end up saving you a lot of money potentially and will get you into a vehicle even though you have less than perfect credit scores.

Direct Financing Lenders

Now direct lenders will be very simple to understand and that is where you will be directly financed and that you will be able to shop like a cash buyer. This is a great thing and most of the time will be people's first choice, but it will not exactly be an option for bad credit shoppers. People who are looking to get bad credit auto loans will typically not receive financing through this nature because lenders will see them as a potential risk. It is possible, but not very likely. Some of the different loans will be private party auto loans, franchise dealership purchase financing, independent dealership purchase financing, and then car loan refinance.

Financing through Indirect Lenders

Indirect lenders will work very different and it may seem a bit off or sketchy, but as long as you are working with a reliable business then there should be no fear at all. This will be the most available for people with poor credit and we actually specialize in helping people through this method. We have been able to secure thousands of people great financing deals even with the worst of credit scores to walk away with a loan and even more importantly a car. The best detail about this process is the fact that you will be able to repair your credit score (as long as you make your payments). That way hopefully you will not have to struggle with bad credit anymore.

Buy Here Pay Here Car Lots

The final choice that you will have will be to get financed and purchase a vehicle through a buy here pay here dealer. These dealers will finance anyone regardless of any type of credit situation and this will sound like a dream to most people, and while it may very likely be the solution for you it comes with a huge drawback. The problem that comes along with this type of financing will be that you will be unable to repair your credit score. That means the next time that you would need financing you are just stuck in the same situation. There are many options that you have available though so make sure that you find out what is best for you and good luck with finding your next vehicle!

Car Loan Auto Financing Online

Do you meet the basic qualifications?

  • At least 1 year with current employer
  • A minimum income of $1,500 per month
  • No repossesions within the last year
  • Any bankruptcies must be discharged
  • Money down may be required, but not in all cases
  • Must be a current resident of the U.S. or Canada