Special financing is a term often used to describe auto loans for consumers with bad credit,* which can include people who have been through bankruptcy or repossession, and those with limited credit histories.

There are plenty of companies in the auto finance industry willing to accept applications for subprime loans, so if your credit is poor, there may be a lender ready to offer the financing. that helps you get on the road.

First of all, keep in mind vehicle loans for people in bad credit situations typically come with higher annual percentage rates than those offered to consumers with better credit. That’s how the risk is balanced.

If approved, depending on factors like loan amount and the type of car they want to buy, many people will opt for a used vehicle instead of a new one.

The main lending options for shoppers seeking such financing include banks, credit unions, auto dealerships.

Dealerships are convenient places to shop for a car and arrange financing at the same time, but be aware of the difference between Buy Here Pay Here dealerships, which don’t use a third party for financing, and other auto dealerships, that do.

“Buy here, pay here” dealers, who offer financing in-house, may have higher interest rates than other options. “Even if you have poor or no credit, it may be worth seeing if there is a bank, credit union, other lender, or another dealer that is willing to make a loan to you,” so says the Consumer Financial Protection Bureau. BHPH dealers are a great place for first time buyers to establish credit.

Many banks, credit unions and, BHPH dealers enable consumers to apply for approval before they shop for a vehicle. You can apply to DriveNation USA by going to www.getapprovedbradenton.com Getting pre-approved is recommended by the CFPB as it lets car buyers compare any offers they receive, and helps them to save time and stay within budget at the dealership.

DriveNation USA

www.drivenationusa.com