Figuring Out Loans

Can You Obtain an Auto Loan Even with Your Bad Credit? 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. However, if you meet certain criteria, you can still get auto loans even with your bad credit standing. We will present here the definition of this type of loan and will lead you to how you can get it. Let us understand first the definition of an auto loan for poor credit. An auto loan is for those individuals who are finding it difficult to get a loan through the traditional ways. 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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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.
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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. 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. Usually, in assisting funding for a car loan, dealers will look at the age of the car, and their cut off is seven years old. It is advisable to get your bad credit auto loan through a franchised dealer because of the high standards they uphold. Usually, once the loans are funded by these franchisers, they assign it to a finance company. Be informed also that if you buy your car from a so called buy here/pay here car dealer, a third party payment processor will usually service your loan.