How Credit Report Mistakes are Made

Mistakes on your credit report can cause plummet you into the sub-prime, bad credit car loans category faster than a Concorde Super Sonic Jetliner. When a credit reporting agency reports errors however, it's often because their data is incomplete or even contains information about somebody else.

Bad credit auto loans from reporting mistake typically happen because:

• The person applied for credit under similar but different names (David Smith, Dave Smith, etc.).
• Somebody perhaps made a data-entry error when reading and entering information from a paper and pencil application.
• The borrower gave an inaccurate Social Security number, or perhaps the wrong number was entered by the lender.
• Auto loan or credit installment payments were inadvertently applied to the wrong account.

It's important that you do a thourogh review of your credit report periodically to be sure that they aren't affecting you. Don't settle for a bad credit auto loan that you don't deserve!

Related Posts:
Determine Your FICO Before Applying for an Auto Loan 

Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
       - Bad Credit Auto Loans Blog

Bad Credit Auto Loans Quiz...

Bad Credit Auto Loans Quiz...

True or False. I have bad credit and am applying for a used car loan. My bad credit score is the sole determinant on whether or not I get an auto loan.

False. Lenders use a number of facts in addition to your FICO score when making credit decisions. While your score is part of the decision making process, lenders will also consider the amount of debt you can reasonably handle based on your income, your employment history, and your credit history. Based on their subjective perception of all this information, lenders may extend an auto loan to you even if you have a bad cedit score.

Conversely, they may also use this same subjective information to decline you even if your score is high.

Related Posts:
Bad Credit Car Loans and Dealer Financing

Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
       - Bad Credit Auto Loans Blog

Knoweth Thy FICO: Know Your FICO Score Before Applying for a Bad Credit Auto Loan

If you're applying for an auto loan and you have bad credit, you'd be wise to check your credit report and FICO score before applying for financing. In fact, the more you know about your financial situation before applying for the subprime auto loan the better - knowledge is power!

Note that it's perfectly okay to request and check your own credit report. Contrary to popular belief, your own credit inquiry will not affect your score as long as you order the report directly from the credit reporting agency or a CRA authorized organization.

Want another reason to get your score in advance?

Sometimes, unscrupulous car dealers will lie and tell you that you have a score that is lower than what you really have. You'll be glad you know your score in advance when this occurs! That's why it's so important that you know your FICO Score before applying for a bad credit auto loan.

Related Posts:
Bad Credit Car Loans and Dealer Financing

Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
       - Bad Credit Auto Loans Blog

What's The Average FICO Score?

Q. I was rejected for an auto loan because of my bad credit score (469). Do you know what percentage of Americans have this low of a score? What’s the average FICO score?

A. According to Fair Isaac, the distribution of scores is as follows:

400-499 2%
500-549 5%
550-599 8%
600-649 12%
650-699 15%
700-749 18%
750-799 27%
800+ 13%

Your score of 469 puts you deep into the subprime (bad credit auto loan) market. You'll need to find a cosignor or find in-house financing in order to get your car loan approved.

If you don't know your credit score, it looks like Consumer Direct is the best way to go. You can get 4 Scores Instantly (FREE) which includes Credit, Auto, Insurance,and Employment Scores + Fix & Lock!

Related Posts:
Knoweth Thy FICO

Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
       - Bad Credit Auto Loans Blog

Bad Credit Auto Loans With No Credit Check

Looking for a new or used car and you have bad credit?

Just follow the signs...

We Finance 
You Work, You Ride
Good Credit, Bad Credit, No Credit
Your Job is Your Credit

Even though banks and credit unions are the most usual places to get a car loan, most financial institutions are not particularly fond of lending money to people with bad credit. This is where car dealers that finance in-house can really be of help.

A subprime in-house lender will charge an interest rate that is higher than the usual "prime" lending rate which is charged by conventional lenders. The subprime lender tries to help his customers who have bad credit get a good car and a good loan, too. Though he charges a higher than usual interest rate, his rate is not high enough to make the buyer feel as if he's being ripped off.

Follow the signs for in-house lending!

Related Posts:
Knoweth Thy FICO

Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
       - Bad Credit Auto Loans Blog

Bad Credit Car Loans and Dealer Financing

Bad Credit Car Loans and Dealer Financing

If your have bad credit, it's best for you to work out your car loan before choosing the car. While it's possible to get a new or used car loan with a bankruptcy on your record or a poor poor credit history, it does require some creativity and a lot of additional leg work.

One relatively new concept in bad credit auto lending has been around for years in other sectors. Have you considered dealer financing?

Some used car lots are now financing cars in-house by offering a buy here, pay here option. With this type of auto loan arrangement, you usually don’t even go through a credit check. Instead, you drop off your car payment at the dealership every week.

While the interest on these types of loans will be high, they are generally a good choice for borrowers with such bad credit that a credit check would entirely eliminate their chance of obtaining a loan. Before going with dealer financing however, you should apply at Auto Loan For Any Credit to determine if you qualify for traditional financing.

Related Posts:
Bad Credit Auto Loans With No Credit Check

Recommended Reading:
37 Days to Clean Credit is a "well-written and very effective course - one of the most popular self-help guides in the credit repair genre these days!"
       - Bad Credit Auto Loans Blog