Very Bad Credit Auto Loans
Do you want to know how to get a car loan with bad credit? How about if you have a very bad credit credit? Securing an auto loan with a bad credit limit is possible, but tough. There are some basic conditions that must be satisfied before you can apply for very bad credit auto loans. The current monthly income should be atleast $1500 and the applicant should be a resident of United States and Canada. They should also be American or Canadian citizens or legal residents of the United States. The applicant should also be able to obtain an automobile insurance from an insurance company in the United States or Canada. Full time employment or a guaranteed fixed income during the length of the loan is a pre-requisite for the loan. Lenders also ask for a a working phone number and a proof of residence at the time of loan application.
People with a recent repossession are not eligible for poor credit auto loans but exceptions are made if the applicant pays a large downpayment. Military personnel currently stationed outside North America are also not eligible for bad credit auto financing. You can apply for an auto loan with bad credit either with the dealer or with an agency that acts as an intermediary between the banks and the customers. Most of the agencies have their own website and applicants can apply online for the loan. If the loan application is approved you can be driving away in your car in less than a day's time. The loan can be either for a new car or an used car. It should be noted that you can buy the car only from a dealreship and not from a private owner. Generally most of the agencies accept loan applications for vehicles which are new or at the most couple of years old and done less than 50,000 miles.
In the United States there are three major credit reporting agaencies which give you credit scores. They are Equifax, Experian and TransUnion. The median credit score in the United States in about 720. If your score is above 700, then you are considered as "prime" and get the best rates from the lender. If your credit score is below 640 then the applicant is considered as "sub-prime" and will face difficulties in getting the loan. The credit scores vary from 300 to 850. It is always advisable to work on your credit ratings and get a healthy credit score before you apply for poor credit auto loans.
Nowadays the car market has become so competetive that dealers and financiers are willing to take extra risk and give very bad credit auto loans to applicants with a bad credit score. Hence getting an auto loan with a bad credit score is not as tough as it used to be. The recent subprime mortgage crisis in the US has had an impact on mortgage houses but not affected the auto loan section. There is a chance that auto creditors will also take cautious steps nowadays before they give the check to an applicant with a bad score.
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