What is a Second Chance Auto Loan

There are a number of reasons as to why consumers across the United States might have bad credit - and, all should know, they aren't alone! Consumers usually have bad credit scores due to a result of the mismanagement of prior credit agreements. Bad credit should never be perceived as to reflect one's character. It does, however, make their ability to be approved for future credit much harder! 

When it comes to financing a car, folks with poor credit are often faced with challenges and burdens. Getting approved for a bad credit car loan is truly stressful, and often seen as something that is merely impossible. The reason for this is because most banks, credit unions and other major lenders tend to mainly deal with consumers who have exceptional credit scores. 

What is a Second Chance Auto Loan?

A second chance auto loan is exactly what it sounds like. They're basically car loans for people who have bad credit, little credit, no credit or other credit issues. These second chance auto loans provide what traditional lenders opt not to provide - and that's an opportunity for a consumer with bad credit get into a car and pursue more in life. 

There are 2 types of Second Chance Auto Loans

1. Subprime Lender Financing - Dealers that have special finance departments that make auto loans available to consumers with bad credit scores. 

2. In-House Dealer Financing - A dealer that doesn't use third-party lenders and finance the vehicles themselves. 

It should be noted that majority of dealerships cannot accommodate consumers with bad credit. There are a number of factors that make auto loan approval difficult, and it's highly advised you do your research before making any final financial decisions. Read more about