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Bad Credit Auto Loans: How to Buy a Car If You Have Bad Credit

By Edited Aug 24, 2015 0 0

Don't Let Bad Credit Stand In The Way of Getting Your Auto Loan

Auto loans for bad credit are only possible if you meet some basic requirements. Though it is not easy and quick to get an auto loan when you have bad credit, there is still hope. There are a few car companies who are willing to lend people despite their bad credit scores. You just need to do a little research and make sure that you really can afford to pay for the auto loan when it is extended to you. In most cities across the United States, it is essential to have a working vehicle, but before going out and getting an auto loan, you also need to have a reality check and see if you can really handle the loan payments. It may be better for you to take public transportation for a while, instead of putting more burden on your budget by getting another loan. Bad credit loans often come at a higher interest rate so be prepared to pay more in the end. It may be more beneficial to save your money while taking public transportation and then buy a used car outright.  However, for those who cannot wait and need a car right now, there are ways you can do this.


Make sure You have a Steady Job

This is the most important factor in getting a car loan whether you have bad credit or not. Having a job will make the car loan company to entrust you with a good loan. Many companies that will lend to you, will require you to set up auto payments (this means the automatically with draw money from either your paycheck or bank account when payment is due), so make sure you have employment. Your job and the length of time you have worked on your job will also make act as a good reference to your ability to pay back the loan. In other words, a job will make you trustworthy enough so you can be approved for car loans even if you have bad credit.  Almost every city across America has little mom n’ pop auto dealerships in their neighborhoods. These auto dealerships will most likely lend to you, if you have a job and a bank account.   


Look Online For a Good Car Loan Company

You need to be able to find a car loan company that is willing to grant you despite having bad credits. As been said, as long as you have a good job, car loan companies will somehow trust your capabilities to pay the loan. In looking for a car loan company that is willing to grant auto loans for bad credit, you also need to check on the interest rates and the terms of payment if you can keep up with it. It is important to realize that there will be higher interest rates for people who have bad credits.


Some Car Loan Companies you can check are:

  • Autonet.com
  • Community Auto Credit.com
  • Ebay (Yes, Ebay!)
  • Autocreditexpress.net
  • Any-credit-auto-loans.com
  • Hourauto.com




Get Your Documents In Order

Going to a car loan company that specializes in bad credit car loans is somehow similar getting a regular prime bank loan. They need many documents as to prove that you will be able to pay. They do not care about your credit, but they do care about your income. You have to make sure that all your documents are complete so, make sure you put a folder together of all the documents you will need.  Some documents include a copy of your most recent w2, copies of your four most recent pay stubs, and a brief list of your other expenses. Lastly, make sure you have any down payments and at least 3 months of auto payments. This helps just in case you lose your job, you will be ok for at least 3 months to give you time to find another job and prevent your car from being repossessed.


Other Articles You May Like

How to Get Credit Cards and Loans and Mortgages If You Have Bad Credit

Top Sources of Peer-To-Peer Lending





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