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Car Loans For People With Bad Credit How To Qualify For A Bad Credit Auto Loan (PDF)

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Car Loans For People With Bad Credit – How To Qualify For A Bad Credit Auto Loan


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Summary:
With most lenders, having bad credit or a past bankruptcy is not a problem. Thus, you can obtain an
automobile loan with a low credit score. There are certain advantages to having good credit. These
individuals generally pay a few percentage points less, which equals a lesser monthly payment. However,
qualifying for a car with bad credit is easy. Here are a few tips to help you get approved.


Requirements for Getting an Auto Loan with Bad Credit


To get approved for a bad...



Keywords:
auto loan, car loan, bad credit



Article Body:
With most lenders, having bad credit or a past bankruptcy is not a problem. Thus, you can obtain an
automobile loan with a low credit score. There are certain advantages to having good credit. These
individuals generally pay a few percentage points less, which equals a lesser monthly payment. However,
qualifying for a car with bad credit is easy. Here are a few tips to help you get approved.


Requirements for Getting an Auto Loan with Bad Credit


To get approved for a bad credit auto loan, applicants must meet certain requirements. For starters, car loans
are not offered to minors. Therefore, applicants under the age of 18 must have a parent or other adult co-sign
for the loan. Moreover, applicants must be employed and have a driver’s license.


Auto loans are the easiest types of loans to obtain because they are secured. With this said, auto loans are
perfect for those hoping to build a solid credit history, and individuals hoping to raise their credit score.


Skip Dealership Financing


Securing financing through the car dealership seems simple and convenient. Nonetheless, keep in mind that
dealerships will make a small profit off of your financing package. To do so, they must increase the interest
rate a few points.
If the lender approved you for a 10 percent interest rate, the dealership may charge 11 or 12 percent. To
avoid paying the extra fees, look for private financing. Private financing could come from a bank, credit
union, etc. If possible, get pre-approved before visiting dealerships.


Check Credit Report for Errors


Having bad credit does not always mean getting hit with the highest interest rate. Prior to applying for an
auto loan, attempt to make some credit improvements and correct errors. For a few months leading up to
financing a new or used car, pay all bills on time. This could make the difference in getting a loan with 12
percent interest and 9 percent interest.


Explore Different Types of Lenders


Common lenders used for an auto loan include banks and credit unions. However, there are lenders that
offer bad credit auto loans at reasonable rates. Sub prime lenders are becoming increasingly popular. They
offer online applications and quick pre-approvals. Moreover, various lenders will provide a no-obligation
auto loan quote. This way, you can review their offer before making a decision.




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