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When you have less than perfect credit or no credit at all, it can sometimes be very difficult to purchase a vehicle.

If you have bad credit or no credit, a sub prime auto loan may be just what you need to be able to purchase the vehicle you want while you work on improving your credit.

You may be a recent graduate or recently divorced and finding that your lack of a credit history is making lenders reluctant to give you financing. In those cases, it’s not that you have bad credit, you may not have a credit history at all. That puts you in the sub prime category.

Lenders prefer to work with “prime” borrowers; people with excellent credit that are very likely to pay off their auto loans completely and on time. Everyone who does not fit in that “prime” category would fall into “sub prime”. In most cases, a sub prime car loan carries an interest rate somewhat higher than that given to the prime borrower. This protects the lender by giving them more interest income on a loan because it carries some additional risk.

If you have ever been turned down for financing at a dealership, it was probably because your credit score puts you in the sub prime category. Dealerships generally qualify auto loans for private lenders who are only interested in prime borrowers.

If you find yourself in the sub prime category, you would be very wise to get pre approval for an auto loan before going to look for vehicles at a dealership. By getting pre approved for a sub prime auto loan, you will avoid the embarrassment of being turned down for financing at the dealership just because your credit is less than perfect.

There are many reasons why someone would be put in the sub prime car loan category. If you have recently experienced job loss, which resulted in unpaid bills; an accident; unexpected medical expenses; divorce or bankruptcy, any of these could have dropped your credit score.

Instead of thinking of a sub prime car loan as a problem, think of it as an opportunity. With this loan, you will be able to purchase the vehicle you need now instead of waiting for your circumstances to improve. Visit S. Dilawri Auto Credit today for a sub prime auto loan and auto finance made easy.

Car loan & auto financing experts for people with bad credit. S. Dilawri Auto Credit provides a car loan calculator and car financing to buy new & used autos. Save money and time and apply online today!

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