Credit Acceptance

By the Pachyy Editorial Team The Pachyy Editorial Team comprises a diverse and experienced team of writers, researchers and subject matter experts whose aim is to provide you with useful insights, guidance and commentary on all matters related to your personal finances.

Are you looking for financing to buy a car but have bad credit? Don’t worry, Credit Acceptance is here to help! We specialize in offering financing programs to automobile dealers that cater to individuals with bad credit or no credit. Our financing programs make it possible for subprime borrowers to purchase vehicles with affordable car loans. We understand that subprime borrowers often face difficulties in getting approval for personal loans or finding traditional sources of financing. This can lead them to fall into the hands of predatory lenders who use aggressive debt collection methods and impose unaffordable monthly payments. At Credit Acceptance, our goal is to support subprime borrowers in becoming proud vehicle owners. That is why we have developed various financing programs that auto-dealers can offer specifically for these borrowers. We want to provide you with an opportunity to improve your credit and achieve your transportation needs. It’s important to note that Credit Acceptance has faced some controversy in the past. In January 2023, we were sued by New York Attorney General Letitia James and the Consumer Finance Protection Bureau. We take these matters seriously and are committed to addressing any concerns from our customers. Here, we strive to provide you with all the information you need about Credit Acceptance. Feel free to explore our website and discover the financing options available to you. We are here to assist you throughout your journey towards car ownership, regardless of your credit history. Welcome to Credit Acceptance!

Welcome to Credit Acceptance Corporation

At Credit Acceptance, we are dedicated to helping both automobile dealerships and consumers with our auto financing programs. With partnerships with over 12,000 dealerships across the United States, we offer solutions to those with bad credit who may not qualify for traditional financing.

Our Commitment to Community Service

At Credit Acceptance, we also believe in giving back to our communities through various outreach programs. Some of the community service activities we are proud to have participated in include:

Donating a therapy dog to Oxford Schools.
Writing cards for veterans and making paracord bracelets for active military members.
Raising money for the Cystic Fibrosis Foundation.
Contributing to Ukraine relief.
Donating food to a local food pantry.
Creating blankets for hospital children.
Donating toys and coats to children in need.

Investments and Earnings at Credit Acceptance

Aside from offering financing programs, Credit Acceptance is also publicly traded on the Nasdaq Stock Market under the symbol CACC. Rest assured, we adhere to investor protection laws to ensure responsible participation in the stock market. In the first quarter of 2023, we earned a net income of $99.5 million, or $7.61 per diluted share.

Our Response to Debt Collection Lawsuits

In January 2023, Credit Acceptance faced legal action from the New York Attorney General Letitia James and the Consumer Finance Protection Bureau. The aim of this lawsuit was to prompt changes in our lending practices and loan agreements. Attorney General James addressed the issue, stating: “CAC purported to assist low-income New Yorkers in purchasing cars, yet ultimately led them into substantial debt. CAC misled hardworking individuals by offering unaffordable, high-interest auto loans while negotiating undisclosed deals with dealerships to protect its own profits. These predatory actions harmed innocent people, leaving them burdened with insurmountable debt. I am grateful for the collaboration with the CFPB to halt this harm and safeguard everyday New Yorkers.” Rohit Chopra, a director at the CFPB, added: “Credit Acceptance concealed the true cost of its loans from car buyers, resulting in severe financial distress and subjecting them to aggressive debt collection practices for loans that their own systems predicted they could not afford to repay. The CFPB’s joint action with the New York Attorney General aims to put an end to Credit Acceptance’s unlawful practices and provide relief to affected consumers.”

Explore the Different Finance Programs for Auto Loans Offered by Credit Acceptance

At Credit Acceptance, we strive to provide two main types of financing programs for automobile dealerships: the Portfolio Program and the Purchase Program. These programs are designed to cater to the needs of independent, Buy Here Pay Here (BHPH), and franchise car dealerships. Rest assured, whichever financing program you choose, you can enjoy a multitude of benefits:

Competitive advances for purchasing new or used vehicles.
Same-day funding when you opt for eContracting.
No look-to-book benefits and a $100 non-recourse policy.
Easy-to-use inventory integration.
Flexible compensation for F&I.
Effortless integrations for Dealertrack®, RouteOne®, AutoClick, ProMax, and other programs.

Explore the Portfolio Program

Our Portfolio Program provides dealerships with multiple payment options to choose from. You can select the “advance” payment option, which ensures upfront payment, covering the vehicle cost along with a modest profit from each auto loan contract. Alternatively, you may opt for the “portfolio profit express (PPE)” payment option. This grants the dealership a percentage of the anticipated collections from a capped pool of auto loan contracts. The auto loan pool normally consists of 50 to 100 contracts. Lastly, you have the option of the “portfolio profit” payment, allowing monthly payments for 80% of the net collections on all contracts within a capped pool once the total Advance balance of that pool is successfully repaid.

Discover the Purchase Program

For consumers with a qualifying credit score of 600 or higher, Credit Acceptance offers the “GOLD financing option” in our Purchase Program. This program comes with incredible benefits, such as:

Competitive advances for your convenience.
Approval for almost every car and customer.
Interest rates as low as 12.99%.
No minimum down payment required.
History of vehicle repossessions is acceptable.
Chapter 7 bankruptcy is acceptable, and so is Chapter 13 bankruptcy with the approval of the court/trustee.

How Can Credit Acceptance Benefit Automobile Dealers?

At Credit Acceptance, we are dedicated to supporting our network of automobile dealerships by offering various financial incentives and perks. Some of the benefits you can enjoy as part of our network include:

Earning a share of cash flow from signed auto loan contracts.
Receiving rewards when customers successfully repay their auto loan contracts.

These incentives and rewards are designed to not only encourage dealerships to provide auto loans to more customers in need but also to motivate them to offer quality vehicles and sustainable loan terms. This sets customers up for success in paying off their auto loans and ensures they have a reliable car that will last. We are here to assist you every step of the way!

How Can Credit Acceptance Benefit Bad Credit Borrowers?

Are you a bad credit borrower struggling to find approval for traditional financing? Don’t worry, Credit Acceptance is here to help! They specialize in connecting individuals with bad credit to auto loans, giving you the opportunity to improve your credit score and increase your chances of approval for future loans.

Don’t Let Bad Credit or Bankruptcy Hold You Back

Regardless of your credit history, Credit Acceptance works with borrowers from all backgrounds. Even if you have bad credit, no credit, or a past bankruptcy, they are willing to assist you. In fact, they may even work with individuals currently going through Chapter 7 or Chapter 13 bankruptcy with court approval.

Improve Your Credit Score

One of the perks of working with Credit Acceptance is that they report your payment history to all three major credit bureaus: TransUnion, Experian, and Equifax. By consistently making on-time payments on your auto loan, you have the chance to boost your credit score and improve your credit report. This can greatly benefit you in the future when seeking other types of financing. Credit bureaus gather financial information in five key categories: payment history, length of credit history, debts owed, hard credit checks, and mix of credit accounts. However, payment history holds the most weight. By demonstrating responsible repayment habits, you are taking a positive step towards a better credit rating.

Increase Your Chances of Approval for Traditional Financing

Your credit score plays a vital role in determining the types of loans you qualify for, the loan amounts available to you, and even the interest rates and repayment terms you receive. By boosting your credit score through Credit Acceptance, you are increasing your chances of approval for a wider range of financing options and better deals going forward!