All Michigan car buyers regardless of their credit have 3 choices when it comes to financing a vehicle, but for people looking to buy a car with bad credit two of them are very limited. That being said, there are usually three ways that people in Michigan looking to buy a car can apply for an auto loan.
Direct Car Loans
Choice number one that car buyers in MI have is to apply directly to a lender for a car loan. Before the internet, this was done by going to a Michigan based bank and applying with a auto lending specialist there. Often this process was time consuming and tedious and many Michigan banks would only give an auto loan to the most qualified candidates.
MI Car Loans Online
With the advent of online car loan lending, car shoppers can now get car loans in Michigan by going online to not only compare rates, but also apply directly for an online car loan. Applying for an online car loan works very well if you have good credit, but if your credit scores fall below a 640 FICO score (get a Triple Advantage Free Credit Score) and you need a bad credit auto loan, things are not as simple.
The fact is, most bad credit lenders in Michigan, due to documentation and verification issues, only work indirectly through franchised new car dealers in Michigan and don’t offer an online car loan. For this reason, people with bad credit in Michigan will find that applying directly for a car loan will not only be difficult, but their choices will also be limited and they could end up paying a much higher interest rate if they find one.
Car Dealer Loans from Michigan Dealerships
The second choice that car buyers have is to apply for an auto loan at a car dealership in Michigan. This also works well if you have good credit, since you can shop for loan rates online and then compare these rates with those offered by the dealer, in which case the best rate wins. In many cases, most Michigan car dealers will also let you apply for an online car loan at their web site.
If you have bad credit, however, this can be a hit-or-miss situation, since not all car dealers in Michigan offer second chance auto loans and, if they do, most will not allow you to apply for an online car loan if your credit is bad.
Bad Credit Car Loans in Michigan
The third choice is applying for an online car loan at a bad credit auto loan web site.
You should ask yourself the following questions when applying for an online car loan at one of these sites: Is the bad credit car loan application on the site secure? Does the company belong to the Better Business Bureau and what is that site’s reputation with the BBB? Does the site offer a resource section where you can learn about bad credit car loans? Is the company based in Michigan like MiUsedCar.com? And finally, is there a toll free number you can call in order to speak to a customer service representative about your individual situation?
If a bad credit car loan web site doesn’t feature all this, you might want to consider applying for an online car loan site that does before submitting your application.
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