Car loans offer lenders a big ticket item with limited risk.   While a lender’s risks their entire investment on an unsecured personal loan a car loan represents less risk since the lender can take possession of the car if the loan is defaulted.  Divorce often leads to bankruptcy and will impact on a consumer’s credit score long after they have recovered financially. Specialized lenders have recognized that a poor credit score may not reflect on a consumer ability to make payments and have placed less emphasis on credit history and more emphasis on ability to pay.

National and regional lenders have emerged to service the very competitive bad credit car loan market referred to as the “Special Finance” or “Sub-prime” market.   These lenders have further divided the “Special Finance” market up into different levels of risks to such an extent that there are lender’s who has specifically targeted the most credit challenged consumer with the highest risk.

The good new is that no matter what your credit circumstances are there is probably a lender out there for you.  

Another phenomenon is the independent credit service that will process your request for credit and forward it to the lender that is most likely to approve the request.  These services usually work with a car dealer who have access to both National and Regional lenders.