9:31 AM Pre-qualify for Bad Credit Car Loans | ||||
#bad credit auto financing #Get Pre-qualified
Simply explaining the bad credit auto loan process is not easy. While the process of applying can take just minutes, it takes slightly longer to understand how we examine your unique credit situation in order to help you make the kind of choice that will both save you money and help rebuild your credit score. Bad Credit
What is a Bad Credit Car Loan?For those new to the process, a bad credit car loan is an auto loan that is made available to an individual with a credit score that is considered subprime. A subprime credit score is usually considered any FICO score below a 620. People with such scores are considered to be "high risk ", and are often denied by traditional lending sources. If you do not know what your credit score is, the Fair Credit Reporting Act entitles you to a copy of your credit report once every twelve months through annualcreditreport.com. We here at Auto Credit Express highly encourage potential car buyers to read and be aware of what their credit report says before applying. And be sure to check your credit report for errors to avoid being penalized for old and/or incorrect information.
What are the Typical Requirements?While there is no nationwide standard, here at Auto Credit Express the typical requirements for someone applying for a vehicle loan are as follows:
Gross income refers to an individual's pre-taxed monthly income. This income should be verifiable through documents such as tax records. Fixed income such as Social Security, Disability Insurance, Child support, Alimony, or Public Assistance should be included in your monthly income total. At least $1,500 gross income is required, and a $1,800 monthly income is recommended for most credit situations. Seasonal employees or temporary employees who have been at their agencies for less than six months do not qualify. The rest is fairly self explanatory: We only have bad credit car dealership networks in United States and Canada, and you must be a legal adult for contractual purposes. "They made me feel like my credit was not a problem from the first step in the door." Jerdina C. Detroit
Your score plays a big part in how favorably or unfavorably a dealer or lender views your credit. To gain a better understanding of what your score means, see what credit range you fall into on the chart below. Say, for example, you're in the below average credit range with a 570 credit score. While some people may tell you that you have bad credit, it is still not the same as those who have truly bad credit of less than 500.
Also, not all bad credit is equal when it comes time to apply for a low credit score vehicle loan. Lenders will often separate bad credit into two profiles: situational and habitual bad credit. For example, if you have low income, a spotty job history and have missed many payment deadlines, you would be viewed as a habitual and unfavorable risk. However, someone who has a higher average income, a good job history and generally makes all their payments until an unexpected event occurs, such as divorce or major illness, may be viewed more favorably. This is true even if both parties had similar credit scores. Why? The person who has exhibited responsible behavior until some sort of personal crisis occurs is perceived as less of a risk, while many lenders believe that someone who habitually misses payments is likely to keep missing payments in the future. Below are some examples of situational bad credit and habitual bad credit.
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