Poor Credit Auto Loans

Auto Net Credit Centers offer all types of financing, traditional loans offered from banks, credit unions, and lending companies, as well as guarenteed in house financing. After you complete the auto loan approval process a representative will discuss your needs and determine which options are best suited for your situation.



If you're a consumer in the market for poor credit auto financing, chances are you've seen the many ads that promote the idea that you can buy a car or truck no matter what your credit score is or what your credit history looks like. Many of these ads, whether you know it or not, are from "buy here pay here" car lots, also know as "tote the note" or "in-house financing" auto marts. So how do you decide where to buy your next car, and how to finance it?

You should know that there is a difference in the types of dealers that offer poor credit auto financing. Many of those dealers that advertise guaranteed credit approvals are buy here pay here dealers, also know as "in-house financing". This means that the dealer – not a bank, credit union, or lending company - holds the contract on the vehicle. They don't require a credit check because you show up at that same dealership and make your payments weekly, bi-weekly or monthly. And while a no credit check car loan can seem appealing, this type of auto financing will do nothing to improve a poor credit score. These dealers rarely report your positive payment history to the three major credit bureaus (Equifax, Experian and TransUnion), so making payments on time will not help you the next time you want to finance a car. The bank, credit union, or lending company won't see the loan repayment history on your credit report. Unless you have taken other measures to improve your credit score, chances are that they will turn you down in the future. Another type of Poor Credit auto loan is done by applying for credit, through a car lot, to one of the major national indirect subprime lenders. Getting a loan with one of these lenders is more difficult than "in house financing" dealer, but the type of vehicle that qualifies for this kind of loan is generally much newer with far fewer miles on the odometer. In addition to a much nicer vehicle, interest rates are comparatively lower and the lender reports your payment history to the credit bureaus. By making your payments on time, you can actually improve your credit score while driving a new or nearly-new car or truck.