Bad Credit Auto Loans in Birmingham (AL)

You need to finance a car in Birmingham, and we can help. Our vast network of dealers and lenders is standing by, waiting for your application. Apply online, and your credit application will enter our cutting-edge placement system. There we will match you with a finance specialist based on your location, your finances, your down payment, and more.

Bad Credit Dealerships in Birmingham

Birmingham AlabamaSubprime credit? Don’t worry. We help consumers with bad credit on a daily basis. A large number of major lenders and dealers now have whole sales teams dedicated to supporting customers with bad credit. Naturally, we have relationships with a wide array of them in Birmingham and beyond. A down payment, as well as proof of income is often expected for any bad credit car loan in Birmingham, but most users receive their approval the same day they apply. There is no minimum credit score but most lenders do want to see an income of $1500 per month before taxes. Applying is easy, fast, and there are no obligations. Go here to submit your online credit application.

Rebuilding Your Credit

If you have less-than-perfect credit, you’ll be excited to know that paying off your loan as agreed should gradually increase your credit score, as long as your lender reports your payments to the credit reporting agencies. Fortunately, the vast majority of our lenders do submit these reports. Just remember:  the important thing is that you make all of your payments on time. This history of on-time repayment is what improves your credit. Of course, the opposite is also true:  missing payments will lower your score in a hurry.

Auto Loan Pre-Approval: What Size Loan?

Your approved loan amount is based on your income and the status of your credit. The following chart displays loan amounts for people of several different credit ratings, given the average monthly income in Birmingham, $1,457. Bear in mind, these are only estimates.

Credit Income Factor Sum
Great Credit 10 $14,570
Decent Credit 9 $13,113
Slow Credit 8 $11,656
Bad Credit 7 $10,199
Terrible Credit 6 $10,199

Just because you can borrow a particular amount, doesn’t mean it’s a good idea. A smaller loan is a good option, because you’ll be able to pay it off in less time, with less interest. It is generally best to opt for the shortest repayment period you can. Yes, shorter terms result in higher monthly payments, but they accrue less interest over the long run.

Down payments are payments made at the time that you purchase your vehicle. They are normally required of borrowers with a subpar history of debt payment. This is because such loans are much more of a risk for the loan company. Going into default is more likely, and a down payment means that some percentage of the vehicle has already been paid off. No down payment? That’s okay. We’re able to get many loan-seekers financed anyway. Submit your application. We’ll work hard to place your application with a lender who can fund your loan, zero down payment required.

Birmingham Buy Here Pay Here Dealers

Buy here pay here dealers in Birmingham have become the last resort for many car shoppers, largely because of the down economy. Dealers like these make credit decisions on-site, instead of outsourcing this to banks or lenders. Payments are made to the dealership directly, and the vehicles they sell are typically $10,000 or less. Unfortunately, most buy here pay here dealers can’t help people improve their credit. In most cases, it is advisable to apply online through us, so we can find you an auto loan in Birmingham with better rates and terms.

Birmingham-Specific Income, Credit Statistics

Originally a steel-town, Birmingham is still sometimes known as “The Pittsburgh of the South.” However, the city has grown into one of the leading banking centers in the nation. BBVA Compass, Regions Financial, and SouthTrust (acquired by Wachovia) are all headquartered here. Listed below are some average stats for residents of Birmingham.

  • Pre-Tax Income: $17,484 Per Annum
  • Average Car Payment: $160 (11% of Income)
  • Suggested Car Payment: $117 to $146 (8%-10% of Income)

Despite a relatively strong economy, Birmingham has its share of credit problems. The chart below shows the estimated number of Birmingham residents at each credit level.

FICO Score % of Population Residents
300-499 2% 9,886
500-549 5% 24,714
550-599 8% 39,542
600-649 12% 59,313
650-699 15% 74,141
700-749 18% 88,970
750-799 27% 133,454
800-850 13% 64,256

Don’t worry if you’re credit isn’t perfect, we can help nearly any applicant who makes $1500 plus on a monthly basis, no matter what their credit score is.