The Credit Acceptance Corporation offers auto loan services specifically designed to help consumers with poor credit qualify for an auto loan. The company works with car dealers throughout the country to secure financing programs for individuals who have been denied loans in other situations.
Car loans are a type of financial lending agreement in which an individual enters into a legal contract to borrow a set amount of money from a financial institution to be put toward the purchase of a new or used vehicle. During this process, several factors are considered to determine the specific details of the loan, such as the value of the car in question and the credit score of the applicant. Credit score is often used in determining loans, as it serves as an indicator of the applicant's ability to pay off the loan, as well as his previous record of handling debts. Lenders are typically wary about lending money to someone susceptible to default on a loan.
When an individual with a poor credit score applies for a loan, some programs choose to place additional terms on the loan instead of outright denying the application. These terms often include high interest rates, additional financing fees or the possibility of repossessing the vehicle if payments are not made.