What is Auto Credit?
What is Auto Credit?
What is Auto Credit?Auto credit is for people who want to buy an automobile, but they cannot get a pre-approved auto loan through a credit union, bank or from a standard car loan company. Sometimes having a credit score of 640 or less, having a car repossessed or a bankruptcy can disqualify you from a standard loan. Do not be discouraged, there are companies that are in the business of helping you get a car. Auto credit is normally funded by a car dealer and later assigned or sold to a financial institution.
A lender will look at more than just your credit score and take into account your finances and your current situation. If you have had a Chapter 13 bankruptcy it will take longer to get a loan, and you might need an authorization to incur debt.
Auto credit companies can be found online for your local area. Type in auto credit into your search bar and add the name of your state after it, as interest rates may vary per state. These sites may list the auto dealers in your area that take auto loans. Your state may have specific requirements to obtain a loan and some companies may require a minimum monthly salary and age. You can even compare prices and look at different types of cars that you might be qualified to own.
Do some research on the company and see what they have to offer. Remember your budget and know what you can afford before you apply for a loan. These loans cannot be used to buy vehicles from an individual, and usually you cannot buy motor homes, boats or motorcycles with them. You may be able to use your current car as a trade in order to apply to your next purchase. You may be required to have proof of car insurance before a loan is approved.