Practical and Helpful Tips: Lenders

Your Bad Credit and Its Impact in Getting a Car Loan Some of us have bad credit and this will affect if you want to get a car loan. However, if you meet certain criteria, you can still get auto loans even with your bad credit standing. There are some information about this kind of loan and some pointers so that you can avail of it. Let us understand first the definition of an auto loan for poor credit. An auto loan for bad credit is for people who cannot secure a loan through the conventional means. In order for a person to obtain a bad credit auto loan, he or she should have a low credit score, have filed bankruptcy, has a low income bracket and has no money to deposit on a car, or had a car repossessed in the past.
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Be informed also that you cannot obtain a bad credit auto loan for the following reasons, and these are if you do not have a permanent job, if you are unable to show proof of income, and if you underwent recently a repossession.
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Getting a bad credit auto loan would require you of the following, like you must be at least 18 years old, you have a monthly income at a minimum of $1,500, you are at present residing in the U.S. as a citizen, and you have a full time employment that will assure of a fixed income that can cover the term of the loan. It would help also if you have a working phone number and a utility bill or credit card statement that will show proof of residency. A proof of income is usually asked in getting a poor credit auto loan depending on circumstances. For example, you can show the lender of your payment slip if you are employed, or your past tax return to validate your income. For those who are self employed, you are still asked for a proof of income and you can do this by gathering your tax returns at least in the past three years, and this can be done by getting a professional tax preparer showing a form with profits you made. Generally, dealers will not assist funding an auto loan if the car is beyond seven years old. Know that your bad credit auto loan will be best done through a franchised dealer since they have a good reputation of this situation. When your loan is already funded by this dealer, they would later assign your loan 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.