Loan Requirements Are Easy
Most of the time, the loan requirements are easy. First, expect the seller to require you to have a valid driver’s license. If you do not have one, they will not even consider going forward with the sale of a car. They will also require some proof of income and steady employment, such as a recent pay stub.
They may also require a minimum weekly take home amount from that source of income. Many bad credit lenders will want you to make a minimum of $2,000 a month. For some people this is difficult.
Our lenders offer some programs for low-income car loans that will approve someone with a gross monthly income of $1,500 a month or more.
They will usually require proof of residence, and will not accept a P.O. box. They will require it to be a physical residential street address. Once the sale is made, they will also need insurance that would cover the cost of the car if it is involved in a wreck.
Should You Choose This Option?
We would recommend that you do your research before you choose this option. Don’t just assume that you cannot get a traditional loan. We would recommend that you apply for subprime loans first, and then you could be approved even for first-time car buyers.
You will be able to fill out your auto loan application and get your credit check online to be pre-approved. Subprime, bad credit loans for cars are looked at differently than credit card loans by the credit bureaus so check your credit score annually to see your auto credit ratings.
Remember that a bad credit auto loan lender looks closer at your job status and residence than your credit score, debt or credit profile. It is important to fill out the application as accurately as possible and don’t leave any application fields blank.
You will improve your chances of getting accepted if you have a steady income for at least the past year and the car loan is over $7,000.00. A bad credit auto loan will rebuild your credit over time. If you find out that you are not accepted after you have applied, then maybe a buy here pay here loan is the only option for you, but your goal is to get a car and rebuild your credit.
What are my best options when it comes to personal loans vs car refinance? We can show you a real life example of which is better in the long run.