back to articles | December 31, 2018 | Dale Peterson
Categories:   Types of Car Loans
Bad Credit Auto Loans
Getting an Auto Loan with Bad Credit
If you have ever dealt with bad credit, and the problems that come along with it, you know how hard it can be to get auto loans.
Having bad credit may cause you to be denied loans for things like a house or a car. Today's busy schedules demand cars, but not all of us have the credit it takes to get loans.
Tips for People with Bad Credit
Have you ever tried to finance a car loan, but have had a hard time doing so because of your credit problems?
Bad Credit Auto Loans Tip
Find a company that offers "bad credit auto loans", and begin to rebuild your credit. If you are sincere about starting over, and you meet the requirements needed, you should be able to qualify for a bad credit auto loan.
Qualify for a Bad Credit Loan
There are many things lenders may require of you to qualify for a "bad credit" auto loan. These are things that usually are not required of people with good credit to qualify for an auto loan. Companies need to be sure that you will be able to make payments considering a bad credit history.
Requirements for Bad Credit Auto Loans
To apply for bad credit auto loans, you will need to provide documentation that you meet these requirements:
- A minimum gross monthly income. This is usually about $1,500 dollars or more a month.
- Proof of employment.
- A Down payment on the loan. The specific amount will depend on your credit report.
- A cosigner (someone that has good credit that will be held responsible if you do not make payments).
- Higher interest rates (depending on your credit history).
- Proof of residence.
You Can Get a Loan With Bad Credit!
You may feel that you will not be able to qualify for auto loans of any kind, especially if you have bad credit, or have recently filed for bankruptcy. This is simply not true. There are many companies that offer bad credit auto loans, and will be able to help you. These companies have many options available and are usually very willing to work with you to get an auto loan, regardless of your bad credit.
When you are considering applying for "bad credit" auto loans, be sure to do a good amount of research. Check out as many online loan lenders as you can The best way to do this, of course, is on the internet. There are many companies that have online auto loan applications, and can secure financing for people with bad credit.
The loan company will then send your information to a few lenders in your area that offer bad credit auto loans. The lenders will then call you if you qualify, and will be able to discuss the options that you have. This will usually take place within about 24 hours.
Bad Credit Auto Loan Options
Bad credit and/or bankruptcy do not limit your auto loan options as much as many people assume it does. Applying and being approved for a "bad credit" auto loan can help you rebuild your credit. Making monthly payments on time will improve your credit rating. There is no reason why you should not be able to get a car loan. Just be sure to look into everything available and you will find a "bad credit auto loan" that fits your budget.