Car Loan with Bad Credit
If you have bad credit and you want to ask for a car loan, there are a few things you should keep in mind:
read this article to find out what you actually need to know.
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Obtaining a car loan with bad credit is possible. However, if you rush in to the first offer you’re presented,
you’ll end up paying exorbitant interest rates and fees and getting ripped off by unscrupulous lenders. Bad
Credit is a drawback, but you don’t have to humbly accept whatever they have to offer, seek for other
options. You’ll soon find out that there are plenty of lenders willing to approve your loan at more reasonable
Your credit score is important but it is not the only requirement. A Bad Credit score doesn’t make it
impossible for you to get a loan but it will affect the interest rate you’ll have to pay.
Taking that into account, get a copy of your credit report and read it with care. Be aware that credit agencies
are required by law to provide you with a free copy of your credit report; don’t pay for this. Look for any
inconsistencies in your credit report and act immediately if you find any. Credit Agencies are also required
to consider your request of amendment and correct any mistake they could have made.
You’ll also be required to have a steady job. Each lender has different requirements regarding salary, but all
agree on the requirement of a period of at least 90 days on the same job. Thus, you should avoid changing
jobs before applying for a loan. Some lenders might require you to fax copies of your paychecks in order to
prove you meet this requirement.
Along with credit report rating, auto loan lenders require applicants to have steady employment. Often
times, an applicant must earn at least $1200 a month. Steady employment usually consists of having the
same employer for 90 days. Thus, avoid changing employers every two to three months. To prove
employment, auto loan lenders may request copies of recent paycheck stubs.
Search for a lender:
You can browse online for lenders dealing with bad credit car loans. There are many sites offering
comparatives and lists of lenders dealing with this kind of loans along with assistance on applying and
getting approved. Since they work with a large amount of applicants they are well aware of which
requirements you need to meet in order to get approved and can assist you in improving those things that
may prevent you from securing your loan.
One of the many tricks to finding better deals on car loans and getting approved is to apply with a cosigner.
A cosigner will pay in case the main applicant is unable to carry out his promise, thus, the risk involved for
the lender is much lower and so will be the interest rate charged for the loan. This is a great way to
contribute to getting approved for a car loan without hassles.
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