If you have a bad credit score, you might be troubled about finding a car loan with favorable terms. Getting a car loan with bad credit can be a problematic business. Some lenders may only consider you for subprime auto loans, which often come with less approving terms and higher monthly payments.
The Typical Requirements for Bad Credit Auto Loans
As soon as you're faced with bad credit, getting a car loan isn't as easy as just pick out a new car, submitting a loan application, and signing the paperwork. Getting the financing you need while struggling with poor credit requires some other steps and documentation. All you have to do is find the right lender and meet their qualifications.
Further requirements are more in depth, and need to be reviewed when you sit down with the finance manager at a dealership. These include, but are not limited to:
- Proof of income with a current computer-generated check stub showing a minimum monthly pre-tax income of at least $1,500 to $2,000 from a single source.
- Proof of residency with a current utility bill in your name at the address listed on your application.
- A minimum of six months at your current job, with at least three years of employment history and no major gaps in employment.
- Proof of a working contract cell phone in your name. Prepaid phone plans are not accepted.
- A list of six to eight personal references with their names, addresses, and phone numbers.
These are just the basic requirements. Financially, there are a few more requirements you should be alert of before jumping into an online bad credit auto loan.
Learn more about auto loans from https://autoloanrefinance.wixsite.com/autoloans/post/buying-a-car-with-a-bad-credit-auto-loan.
