Some people are interested to get an auto loan but have a bad credit. If you have a bad credit record, this could affect your chances in getting an auto loan. Do not be dismay because you can still get auto loans even if your credit is bad provided you meet some requirements with this regard. There are some information about this kind of loan and some pointers so that you can avail of it.
Let us answer the question first on what is this auto loan for bad credit. An auto loan is for those individuals who are finding it difficult to get a loan through the traditional ways.
You can get a bad credit auto loan if you have the following condition, like you have a low credit score, you have filed for bankruptcy, you have a low income bracket, you have no money to deposit for a car, and had a car repossessed in the past.
News For This Month: Loans
On the other hand, know that you cannot get a bad credit auto loan if you do not have a permanent job and just work part time, if you cannot show proof of income, and if you had a recent repossession.
Where To Start with Loans and More
There are basic qualifiers for you to get a bad credit auto loan, and these are that you must be at least 18 years of age, have a $1,500 minimum monthly income, at present residing in the U.S. and are a citizen, and you have employed full time with a fixed salary that can cover payment for the loan term. On top of these, it is helpful if you have a working phone number and proof of residency that can be shown through your credit card statement or utility bill.
Depending on some circumstances, you are asked to demonstrate proof of your income in a bad credit loan. For example, you can show the lender of your payment slip if you are employed, or your past tax return to validate your income. If you are self employed, you can make your proof of income the tax returns in the past years, and you can ask a professional tax preparer to do it for you, and the person will make a document showing the profits you made.
There is a cut off point with regards to the age of the car, and most dealers will not give funding for a loan if the car is beyond seven years old.
Your bad credit auto loan can be funded through franchised dealers, since they usually are the ones who can give at a higher standards. Be aware that loans that are granted by these dealers will usually forward it to a finance company. Be advised that purchasing your car from a car dealer with a buy here/pay here arrangement, the service of your loan will be through a third party payment processor.