Drivers with bad credit history may be dismayed to hear the news of banks primarily striving to extend credit to consumers with prime scores, but there is an aspect of this credit market development that benefits drivers looking for a bad credit loan.
Data from the credit bureau Experian indicates that the average credit score on an auto loan for a new car is significantly higher than the average credit score of a person applying for car financing for a used vehicle. According to Melinda Zabritski, director of automotive credit for Experian, this may indicate that drivers with bad credit history may have better luck getting suitable financing if they shop for a used car rather than a new one.
There are also ways for drivers with less-than-stellar credit to avoid the hassle of waiting to see if they've been approved for a loan. There are lenders that specialize in providing car loans for people with bad credit, and such lenders can quickly approve a driver's application for financing, allowing him to quickly get behind the wheel of a reliable used vehicle.