Using Bad Credit Amnesty to Get a Car Loan

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Even with poor credit.


Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.

, - August 7, 2019

Credit amnesty is another term for bad credit forgiveness. Finding true credit amnesty when you’re trying to finance a car isn’t easy, but we can help you get connected to a dealership that knows how to handle bad credit. Before we do that, though, we want to cover the types of lenders you could be working with, and what you need in order to qualify for a bad credit auto loan.

Types of Lenders That Help with Bad Credit

Unfortunately, you usually can’t just visit any dealer and get financed if you have bad credit. However, you should first try to get pre-approved for a car loan with your bank or credit union. Even if they turn you down, you now know you need to find a different type of lender.

For bad credit amnesty, there are two types of lenders you could be working with:

Subprime lenders – These lenders work with special finance dealerships, and understand different bad credit situations. Although they use your credit score when qualifying you, they also consider outside factors such as your income and residence stability. A bad credit auto loan with a subprime lender gives you the ability to build credit by making all of your payments on time.

Buy here pay here dealers – Buy here pay here dealerships are also lenders, and offer loans for the vehicles on their lots in-house. This one-stop shop makes car buying easy for those struggling with credit because they typically don't check your credit score or credit reports. In this day and age, more and more of these places report payments to the credit bureaus, which means one of these auto loans may be able to help you increase your credit score.

Basic Bad Credit Auto Financing Requirements

What do these two types of lenders look for in order to approve you for a car loan? Let’s take a look at the typical loan requirements for credit amnesty programs.

Requirements for subprime lenders:

  • Proof of income – A recent computer-generated paycheck stub showing your year-to-date earnings. Most subprime lenders need to see that you make at least $1,500 to $2,000 a month before taxes from one job.
  • Proof of residence – A recent utility bill in your name to your address listed on the application.
  • Proof of a working phone – A recent contract cell phone or landline phone bill in your name.
  • Down payment – Most subprime lenders require a down payment of at least $1,000 or 10% of the vehicle’s selling price, whichever is less.

Requirements for buy here pay here dealers:

  • Proof of income – Just like a subprime lender, bring in a computer-generated pay stub showing year-to-date earnings. However, you can have more than one job and qualify for financing as long as your total pre-tax income meets their minimum income requirement.
  • Down payment – A down payment is required, but the minimum asked for can vary greatly. A buy here pay here dealership's down payment requirement typically depends on the price of the car you're financing.

With both types of lenders, your interest rate is going to be higher than average, which increases the overall cost of an auto loan.

Ready to Get Started?

When you feel ready to get the bad credit car buying process started, CarsDirect is here to help. We’re teamed up with dealers across the US that know how to handle bad credit situations including no credit, bad credit, and even bankruptcy.

To get started, fill out our auto loan request form today, and we'll get right to work connecting you to a local dealership.

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Megan Foukes is a recent graduate from Indiana University who graduated with a bachelor’s in journalism. Megan works as a content writer for Auto Credit Express and contributes to several automotive and finance blogs.

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