Have you been turned down for an auto loan at least once due to bad credit, bankruptcy, or repossession? Unfortunately, too many car shoppers in the same boat immediately jump to in-house, no credit check financing from a Tote the Note or Buy Here Pay Here car lot. These “car lots of last resort” often come with significant disadvantages such as inflated interest rates, weekly payments, and little chance to improve your credit. The vital “missing link” for people in need of second chance credit approval is subprime lenders specializing in their type of scenario.
My Car Lender can help you get approved for car loans from our nationwide network of subprime lenders and dealers who specialize in 2nd chance auto sales. The application takes only about 3 minutes to complete, and within 24 hours you can find out if your credit has been pre-approved for 2nd chance financing from a lender or dealer near you.
What is Second Chance Auto Financing?
Second chance car loans are car loans that target customers with bad credit scores who are unable to get standard car loans. Since their customers are more likely to stop making payments on their debts, second chance car lenders charge higher interest rates and impose conditions such as collateralization to better protect their resources. As a result, most second chance car loan customers use their loans to rebuild their credit scores so that they can access cheaper and more affordable car financing options.
Even though second chance car loans can be highly profitable for lenders, you may not be able to get one from local lenders because these loans are highly risky. For these occasions, your best search option is to head to an online car loan broker affiliated with lenders from across the country – a broker like us! Filling out some simple forms will not only help you find a list of obliging lenders, but also greatly narrow your search for the best possible second chance car loan.
Refinancing Second Chance Car Loans
Second chance car loans are often one of the few financial products available to customers with bad credit scores. As a result, these customers often have few options when it comes to rebuilding their credit scores other than taking these loans and making the periodic payments on time. Eventually, their credit scores will rise to the point where better options become available. At which point, it is likely that most customers will leap at the chance to refinance.
Once again, visiting an online car loan broker is your best option for finding a lender willing to help you refinance your second chance car loan and to find the best option among these lenders.
Sources of Second Chance Car Loans
- Financial institutions sometimes offer both standard and second chance car loans to their customers. In general, the bigger the financial institution, the better your chances of getting a car loan despite having a bad credit score. Bigger financial institution are more willing to gamble on lending to risky customers because they have the resources to be able to afford such adventures. You can still get a second chance car loan from smaller and more local financial institutions, but you’ll almost certainly find it more difficult to do so. It is not uncommon for smaller institutions to require a co-signer for your car loan if you have a bad credit score.
- Car dealerships that offer in-house financing also sometimes offer second chance car loans. You’ll usually find that getting a second chance car loan from a car dealership easier than getting the same from a financial institution for a couple of reasons. First, a car dealership has an incentive to finance your purchase because it also benefits from the sale. Second, the car dealership is likely financing its second chance car loans by borrowing from local financial institutions. It can make a profit by lending to you because it is almost certainly getting better interest rates borrowing from local financial institutions than what it plans to charge you.
- Some car dealerships specialize in selling vehicles to customers with bad credit scores and helping them finance the purchases. You’ll be limited to buying only used vehicles, but you’ll almost certainly not be turned down. A second chance car dealership is also likely to require you to make a substantial down payment on the vehicle in order to reduce the risk to itself.
2nd Chance Auto Loans: Advantages
- Monthly Payments
- Credit Improvement
- Better Rates
- Better Vehicles
Giving You a 2nd Chance: Our Technology
The real secret to getting approved is being matched to the right lender. When you apply to a direct car lender, you really only get a single chance at approval. My Car Lender, however, is an auto loan broker with a vast multitude of lending options. The heart of our process is an advanced data-matching engine that attempts to place your credit application in the hands of the optimal lender given such factors as your credit score, income, down payment, and other aspects of your unique profile. The process is free, with zero hassles or obligations.
So don’t settle for last chance financing. Give your credit a 2nd shot — we certainly will!