What is a Sub-Prime Loan?

Posted: Friday, March 4th, 2016

Many drivers have heard of “sub-prime loans” before, but few know what they are or how they can help a driver with shaky credit afford a car. Green Light Auto Credit works with clients across the nation to find financing solutions for drivers regardless of their credit history. Before we get started looking at how a sub-prime loan can help a driver, fill out our online finance application, so one of our credit experts can begin preparing loan options for you.

 

The Ins and Outs of Sub-Prime Loans

Most people are familiar with the phrase “sub-prime loan” from the housing crisis, but lenders looking to take advantage of potential homeowners gave this special type of loan a bad name. A loan could be called “sub-prime” if it is made to an individual who may have trouble repaying the loan.

Traits of sub-prime loans can include:

  • Higher Interest Rates
  • Lower Acceptable Credit Scores
  • Greater Risk of Default to Lenders
  • Borrowers with Potential Difficulty Repaying

By and large, a loan is thought of as sub-prime if it is made to a borrower with a FICO credit score below 640. The insidious thing is that many lenders won’t even bother with borrowers who would fall into the sub-prime credit range due to the risk, effectively limiting your future for mistakes you made in the past. Green Light Auto Credit believes the past is the past, and we are more than willing to work with drivers who have bad credit, no credit, and even past bankruptcies. That’s because taking on a big loan and paying it off is one of the only ways for people with sub-prime credit to successfully rebuild their score.
Car Loan Types

Let Green Light Auto Credit Help

Because of our credit flexibility, we are able to grant sub-prime loans to drivers who show us they are eager to turn their credit around – and a new auto loan is an excellent way to get started fixing your credit. Here’s what we can offer area drivers in need of auto financing:

  • Instantly Obtainable Credit Score (Free of Charge)
  • No Inquiry on Your Credit Report
  • No Required Social Security Number
  • Simple, Short, Easy to Understand Forms
  • Step-by-step Instructions Available Online with the Finance Application

Contact Us to Learn More

There’s nothing wrong with sub-prime loans; in fact, they help many drivers rebuild their credit. Contact us online or give us a call at (800) 200-5551 if you have any questions.