Since 1989, AAC has specialized largely in automobile financing for clients with all different kinds of bad credit. Auto Acceptance Corp., or AAFC, was founded on the basic principle of providing cost-effective, valuable personal financial assistance to consumers in need. Since then, they have expanded their services to include other forms of auto finance for people with all different kinds of credit histories. They are a subsidiary of Bank First National Bank.
The concept of automobile acceptance is relatively simple: Many major credit card companies and banks offer special credit cards that can only be used for automobile purchases. People who have had their credit rejected through bad credit may have difficulty applying for a standard card, because the credit card will only offer limited services like gas and rental cars.
People with bad credit may have difficulty applying for a conventional car loan: because the interest rates tend to be very high. Fortunately, they have several options to improve their credit rating and purchase a vehicle. One option is to go through automobile financing companies that do not use credit scores as criteria for approval. Another option is to get a conventional loan from their bank. Still another option is to work with private lenders to approve credit cards for automobiles.
For many years, many people with lower: than average credit had trouble applying for an automobile loan. Some examples of these companies are Enterprise, American Express, Discover Credit, MasterCard and Visa. Over the past ten years, however, new methods of auto financing have been developed. For example, in late 2021, J.D. Powers and Associates released a study revealing that more than half of all Americans currently have bad credit. In the same study, they found that thirty-six percent of people with lower than average credit had poor credit scores.
The automotive industry has responded to this in different ways: Most lending institutions now offer at least some automobile financing options for people with bad credit. These lenders often charge higher interest rates, but some also provide automobile credit cards that can be used to purchase a vehicle. Even though these credit cards generally have a higher interest rate than the interest rates associated with personal financing, they are still a feasible option for people that need to purchase a vehicle.
As of late 2021, there are no longer any credit cards: that are specifically made for people with lower than average credit scores. However, there are a few credit cards that still accept people with low scores. One of these is the Chase Freedom card. The card offers an air mile credit card which allows the user to earn one mile per dollar spent when traveling.
This is a great way to improve one’s credit score and get an automobile acceptance rating for purchasing a car in the future.