7 Tips For Buying A Car With No Credit or Bad Credit

For consumers with good credit, car buying can be pleasant experience. They can shop

around to find what they like and have finance companies falling all over them to offer a competitive rate. For most consumers, this is not the reality. A majority of car buyers looking to finance vehicles have fair to poor credit and when you’re a buyer struggling with credit challenges, car shopping can be an exercise in futility. If you have bad credit, fair credit or no credit, car buying doesn't have to make you want to pull your hair out. By following a few simple steps, you can make the process less stressful and be on your way to repairing your credit and get back on the road.

What is a Sub-Prime Borrower?

According to Experian's State of the Automotive Finance Market Report for the first quarter of 2014, scores are divided into five categories of ranges. 740 and up puts your score in the "Super Prime" category. 730-680 is "Prime" and 679-620 is "Non-Prime".  That leaves all other consumers in the "Sub-Prime" category with 550 and under being described as "Deep Sub-Prime". According to their Open Loans by Risk report, over 21 percent of all open loans are below prime, with deep sub-prime lending being the highest growing category of open loans. The average credit score of an auto financing customer dropped 10 points from the first quarter of 2013 from 731 to 721. In summary, more lenders are willing to take chances with sub-prime borrowers as more and more consumers are falling into that category. According to Credit-Report-101, the national average FICO credit score as of 2014 in the US is 639, which would place the average national consumer in the "Non-Prime" category. 

Why Used Car World?

    Many consumers believe that all used car lots are the same. Hidden costs, pushy salesmen and big promises. At Used Car World we have upfront pricing, knowledgeable salesmen and a long history of obtaining financing for even the most difficult situations. We have been serving Pittsburgh and surrounding areas like McKeesport, Brentwood, Mount Lebanon, Monroeville, Baldwin, Penn Hills, West Mifflin and many more for 20 years. There is good reason we have been around so long. We can do what no one else can. Many of our customers have been turned down by other dealerships. What makes our dealership different is a combination of partnering with multiple lending companies and a sales staff that has been financing the “un-financeable” for a very long time. Partnering with multiple lending companies means we will find a company that will work with your situation. All lenders have different criteria for their programs. One lender may not accept bankruptcies, or self-employment income, while another will. Our salesmen have become experts over the years. They know which company will work with your situation. We also have the Buy Here Pay Here program. If your situation is especially difficult and does not qualify for our outside lending programs, we will finance you in-house! This way, everyone gets a car loan.

Check Out Our New Program Pages

New pages for each program were just set up! See which one you qualify for!

SPECIAL FINANCING

Have income? You’re approved!

Bring in a pay stub or proof of income, and we'll get you a loan! We don't care about your crappy credit! Our down payments are as low as $500.00 plus tax and tags. We accept people with all kinds of credit problems including repossession, divorce and bankruptcy. 

We use a network of sub-prime lending companies to find you a loan that works with your situation. Apply online on our website, or check out our Special Financing page for more information!

BUY HERE PAY HERE

No income? You’re approved!

We have financing programs for everyone including the Buy Here Pay Here program. If you are a special case customer that is unable to meet the verification requirements of our special financing, that's OK! We can still get you a loan.Our Buy Here Pay Here program accepts everyone, and no verification is necessary. Apply on our website or check out our Buy Here Pay Here page for more information!

 CASH FOR CARS

We'll buy your car.. Even if you're not buying ours!

Need quick cash? Having down payment problems and need to use your trade? We'll buy your car and give you the most money for your vehicle. Our expert salesmen will give you a free appraisal on your vehicle and pay you in CASH today. Getting cash for your car is easy! Use our online instant appraisal tool. Want more information? Our Cash for Cars page has all the information you need!

Visit our site and apply for any of our financing or auto buying programs.

Rebuilding Your Credit With An Auto Loan

You may have been a victim of financial hardship. Bankruptcy, divorce, job loss and medical bills can take a toll on people’s credit rating. People who find themselves in need of credit repair often find that repairing their credit can be difficult when you are unable to get approved for loans or financing.  At our dealership we find that consumers are not only looking for a car loan.. they are looking for a second chance. Many consumers are unaware of the positive impact an installment loan, like a car loan can have on their credit rating.

How Can An Auto Loan Help My Credit?

Monthly Reporting

Lenders, like ours report to credit bureaus. Paying installment loans on time is one of the

Will Shopping Around For A Car Loan Damage My Credit?

         We hear from customers buying a used car all the time that are worried about making credit inquiries at multiple dealerships while car shopping.  It’s especially worrisome for those with challenged credit because they are worried about damaging their credit any further, but are forced to shop around to find a company that will give them a loan. Like in most other financial situations, people with bad credit are left with few options. 

         First, it’s important to note that all credit checks are not the same. Checking your own credit does not affect your credit score at all. This common myth has been debunked countless times by credit experts. Any consumer that would like to keep track of their credit can and should pull their Equifax, Experian and Trans Union credit reports for free once a year at AnnualCreditReport.com.  While it is true that your credit score could possibly be affected by running multiple credit inquiries in a short period of time, the affect is minimal and temporary. FICO has released

SUB-PRIME BAD CREDIT AUTO LOANS - Twelve Most Frequently Asked Questions

Its a vicious cycle.... 

Lots of good people have ended up in financial hardship from job loss, illness or unexpected problems resulting in damaged credit. Once your credit is damaged, the only way to rebuild your credit is to get a loan and show that you can now pay. But how do you prove you can pay if no one will give you a chance? Guaranteed auto loans can be the answer for some consumers to rebuild their credit and get back on track.

What Is Buy Here Pay Here?

Similar to bad credit financing or sub-prime lending, Buy Here Pay Here loans continue to be popular for those with extraordinary credit problems. To understand how Buy Here Pay Here works, you need to first understand how dealerships finance vehicles. Dealerships that normally work with bad credit or no credit customers will more than likely partner with outside “Special Financing” or sub-prime lending companies. Good dealerships partner with more than one financing company to offer additional options to customers in different types of situations. Some dealerships will also offer “Buy Here Pay Here” or “Rent to Own” programs for those customers that do not meet the requirements for Special Financing.

How Does Sub-Prime Financing Work?

         Not everyone has had a perfect credit history, and most times it's through no fault of their own. Young consumers don't understand that every financial decision they make since the day they turn eighteen is tracked on their credit reports. Yes, some people make bad decisions, but most people want to pay their bills on time. It just so happens that sometimes, people are forced to choose between two necessities. Others have simply been a victim of circumstance... Divorce, accidents, unexpected medical costs, or loss of a job can affect a consumer's credit rating. Auto finance companies prefer those with "Prime" credit, meaning those who have excellent credit and haven't fallen on hard times and were unable to pay a bill or two on time. Everyone one else outside of that "Prime" category would be considered "Sub-Prime".