2017 Guide to Finding the Best Subprime Auto Lenders & Bad Credit Auto Loan Lenders & Companies
Subprime auto lenders provide credit to individuals with credit scores so low that they are considered (a) unfavorable candidates for loans with attractive rates and (b) unreliable, and therefore more likely to be turned away from traditional financial institutions.
Typically, the advice to people with bad credit scores is to avoid taking on additional credit and work on building their score.
This can be done by checking for any errors on their credit report, chipping away at their debt, and making their loan repayments on time. On the surface level, going to subprime auto lenders sounds like the worst decision to make. Like most things, it is a bit more complicated than that.
Unlike taking out another credit card to continue living an unattainable lifestyle, seeking financing from subprime auto lenders can mean the difference between being able to get to work and being unemployed.
Americans need their cars to get to work, and in some parts of the country, using public transportation is simply not an option.
In fact, there are jobs that require potential applicants to have a driver’s license and a vehicle, which makes acquiring poor credit car loans a matter of sustaining one’s livelihood.
Top 3 Best Subprime Auto Lenders | Ranking
Subprime Lenders | Websites |
| Auto Credit Express | https://www.autocreditexpress.com/ |
| Capital One | https://www.capitalone.com/ |
| My Auto Loan | https://www.myautoloan.com/myautoloan-home.html |
Table: Top subprime auto loan lenders
Deciding to Get Poor Credit Car Loans: The Difference Between Auto Loans and Personal Loans
You have definitely heard of personal loans (a.k.a. your regular loans) and you have heard of car loans. So you may be curious what the difference is between the two, and what benefit there is from going to subprime auto lenders specifically.
Simply speaking, a personal loan is for whatever you need the money for: you could use it to pay for a vacation, a wedding, or a roomful of sweets. At the end of the day, you are responsible for paying it back, and how you spend it is your business. An auto loan (whether it’s a regular auto loan or an auto loan from bad credit auto loan lenders) is different.
A regular loan or loan from subprime auto lenders has to be used specifically for a car. It is what is known as a secured loan. This means that the lender technically has ownership over the vehicle the money is being used for until the poor credit car loans have been paid off. Your car is essential collateral for the loan if you default.
The fact that the loan is secured means that auto loans typically carry a lower interest rate. This is why you would look for subprime auto lenders as opposed to just subprime lenders. Personal loans are unsecured, which means that they are not tied to any specific collateral. You can use the money for anything, but your interest rate will be higher than it would coming from auto lenders or bad credit auto loan lenders.
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Auto Credit Express Review
Higher interest rates are the expected price of poor credit car loans. If you want to get approved by subprime car lenders, you are most likely entering that arrangement with the expectation that you will be getting an unattractive rate.
While you certainly will not enjoy the perks of the kind of interest rate good credit borrowers receive, you have the possibility of more options with Auto Credit Express.
Auto Credit Express specializes in poor credit car loans. As a result, they offer options. Among the subprime auto finance companies out there, they offer car loans for people with good credit and bad credit alike.
They are one of the subprime auto loan lenders who work with individuals who have bad credit, no credit, have been turned down in the past, or have filed for bankruptcy.
Poor credit car loans are extended to individuals with subprime credit scores, which would be any FICO score below 620. They turn to subprime auto loan lenders like Auto Credit Express because traditional financial institutions and lenders will and probably have already turned them down.
The reason they are turned down is because they are considered a higher risk. Other subprime auto finance companies will extend them a loan, but at a higher interest rate that makes the risk of default worth it.
Minimum Requirements
There is not a standard set of requirements for subprime auto loan lenders, but Auto Credit Express has a few minimum requirements that it uses. Applicants who choose to pursue options at Auto Credit Express among the subprime auto finance companies out there must meet the following requirements:
- Minimum monthly gross income of $1,500
- 18 years of age or older
- Current resident of the United States or Canada
- Current American or Canadian citizen/legal resident
- Employed full-time/guaranteed fixed income
What bad credit auto loan lenders mean by gross income is your pre-taxed monthly income. This is the amount of money that you earn before taxes. Bad credit car loan lenders expect to verify this gross income via tax records.
Sources of fixed income such as Social Security, child support, Disability Insurance, Public Assistance, and Alimony are also revenue streams that should be included when providing your gross income to bad credit auto loan lenders. Auto Credit Express is among the bad credit car loan lenders that recommend a monthly income of $1,800 before taking out any kind of credit.
Additionally, bad credit car loan lenders require seasonal or temporary workers to have been with their agency for more than six months—anything less and they do not quality.
Image Source: Bad Credit Auto Loan Lenders
How Does Auto Credit Express Work Compared to Other Bad Credit Auto Loan Lenders
Subprime auto lenders exist—they are just hard to find.
Finding top subprime auto lenders with options and rates is almost impossible.
Auto Credit Express is a way to match to the best subprime auto lenders. Discovering subprime car lenders who meet your specific needs and situation can be challenging and frustrating, so using a service that takes your information and specifications and finds top subprime auto lenders for you is a wonderful service.
Using an online application, prospective borrowers are swiftly matched to the subprime car lenders and dealers who meet their specific loan guidelines. This application does not discriminate. Its specifications can be tailored to accommodate people with no credit, awful credit, or a bankruptcy in their financial history. All of these people from different financial history backgrounds are assisted when it comes to the top subprime auto lenders.
It takes only a few minutes to fill out the application and quickly be connected to some of the subprime car lenders in your area.
Most customers express satisfaction with regards to their interaction with Auto Credit Express compared to other subprime auto lenders. Reviews note that representatives were helpful and that the application matched them to the best subprime auto lenders available for dire credit score situations.
Auto Credit Express does not facilitate poor credit car loans for car purchases from private sellers.
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Capital One Review
Oftentimes, people assume that a subprime auto lenders list will be filled with a bunch of financial institutions they have never heard of, and they will be forced to settle for a lender with no name recognition. This is not entirely true.
Capital One is a prominent brand and financial institution that provides poor credit car loans. It is definitely a recognizable name on this subprime auto lenders list. This is a great option for people who realize they have limited options but are unwilling to sacrifice their need for a recognized name in banking.
Thousands of dealers accept bad credit financing through Capital One, so it is certainly an attractive option from the many subprime auto lenders potential borrowers can choose from. Compared to other bad credit auto loan lenders, Capital One offers attractive interest rates for those searching for poor credit car loans.
Image Source: Bad Credit Auto Refinance Companies
Minimum Requirements
Before applying, Capital One poor credit car loans applicants must ensure that the car they want to finance is:
- Between $4,000 and $40,000
- A new or used car, truck, minivan, or SUV—2006 or newer
- Less than 120,000 miles
- Exclusively for personal use
- From an eligible dealer
Bad Credit Auto Refinance Companies: Going with Capital One
Another reason car owners or hopeful car owners may wish to do business with Capital One: they are one of the bad credit auto refinance companies. Customers can get a more attractive rate on existing auto loans by refinancing through Capital One.
Customers detail little hassle with Capital One among bad credit auto refinance companies. One reviewer writes of their overall experience getting poor credit car loans with Capital One:
“I bought a car in 2011 with pretty poor credit. I signed for a 72-month car note to keep my payments low. I made my payments, there were a few that were a few days late, but they never dinged my credit for it, but I always called to let them know, and paid it off early. I have never had any issues with them during that time. I am currently looking to purchase a van and would consider using them again.”
Another customer writes:
“I needed a car, and Capital One made it a reality. My credit score was not the greatest, but they were able to work out a loan that was fair, and I feel they really did do the best they could considering my credit score.”
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My Auto Loan Review
My Auto Loan is another company that conveniently matches you up with subprime auto lenders that match your unique situation. In order to make finding bad credit auto loan lenders as quick, painless, and easy as possible, My Auto Loan provides an Internet-based solution that quickly connects people to applicable subprime auto loan lenders.
My Auto Loan users simply fill out their easy application available on the website that determines what loan requirements the potential borrower has. Users indicate the type of poor credit car loans they are looking for (i.e. new car, used car, refinancing) before continuing to fill out the application.
After filling out the application, users receive four subprime auto lenders within minutes to choose from. If one of these bad credit auto loan lenders works for their needs, they can move on to select it and buy or refinance. Users are not obligated to use My Auto Loan’s suggestions, but they are there to make life—and searching for the best subprime auto lenders—easier.
My Auto Loan Is One of the Best Subprime Auto Lenders for Its Educational Materials and Resources
My Auto Loan sets up its users with the most educational resources and useful tools it can to make understanding the loan process and finding the best subprime auto lenders an easy and painless process. In addition to informative content on what loan options are available, other tools are:
- An interest rate chart: shows the day’s lowest rates on loan types
- An interest rate estimator: gives users a rough idea of the rate they will be approved for
- A payment calculator: after learning their approximate interest rate, users can see how much they can afford to pay each month
Reviews of My Auto Loan
Reviews of My Auto Loan compared to other bad credit auto loan lenders position the site as extremely useful, convenient, and hassle-free.
One reviewer writes:
“I have had a ton of marketing and false ads come my way, and this company is legit. They found a lender and handled everything for me all within the week. Very pleased.”
Another reviewer says:
“All my questions were answered in a timely manner. I had no trouble getting the terms of the loan I wanted.”
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Options to Consider Before Looking for Subprime Auto Lenders
For many people, finding subprime auto lenders who will extend the financing they need to buy a car is a matter of putting food on the table or going without.
For others, while buying a car may make their life significantly easier, they can do without. In the case of the latter group of people, working on improving your credit and financial situation before pursuing bad credit auto loan lenders is the best route to take.
A FICO score less than 620 to 660 is considered subprime by most lenders and subprime auto lenders.
Your FICO score is derived from several different variables, most importantly your credit history, amount of debt, diversity of debt, and the timeliness of your payments.
If you have a subprime credit score, consider making drastic changes to work toward improving it before looking for bad credit auto loan lenders.
For starters, make an effort to put a serious dent in your existing debt. Pay it down. Look at areas of your life where you can afford to spend less whether it is by eating out less, taking on an additional job, or selling items you no longer use.
