In the second of a two-part series, we look at some of the “fiction” behind bad credit auto loans. In the last part, we talked about some important facts for consumers to keep in mind when considering a bad credit auto loan. In this article, we do the same, but we look into some of the common misconceptions surrounding bad credit auto loans. As we always recommend on this site, when applying for a consumer loan, it is important to arm yourself with as much information as possible and understand all options available to you as the consumer.

There’s no such thing as a “good” bad credit loan. This really couldnt be farther from the truth. While the terms of your loan may not be as favourable as if you had great credit, lenders do look at other variables. Having a high income, or a large down payment, can help you get good rates on your auto loan. Remember, lenders know that you require a vehicle to get to and from work. You are more likely to pay your auto loan payment than other expenses.

You can only get cheap model vehicles. Again, this is another fiction. While some lenders are affiliated with used car dealerships specialising in low-end vehicles, independent lenders generally dont care about the type of car you wish to buy. They care only about total loan amount, and what your qualifications are.

Everyone is approved. This is definitely not the case. Any lender claiming this is being deceptive. Understand that all applications must APPLY. In order to get approved for a bad credit auto loan, you will need to prove income and show what your other expenses are. Lenders dont hand money out to everyone.