Help to Get Approved For Auto Loans With Bad Credit in 5 Easy Steps
More and more people are finding themselves with lower credit scores these days. Luckily there is a whole industry dedicated to providing auto loans with bad credit. You just have to find the right one that works with your current financial situation. Online is a great way to access these lenders.
1) Check Your Credit Score- Before you begin shopping for auto loans with bad credit; take the time to review your credit report. You can obtain it online from the three major credit reporting agencies. You are entitled to one free copy of your credit report per year. Review your report for any errors and report them online to the appropriate reporting agency. You can also dispute errors on your credit report to have them removed. Regardless of how small, every error you have corrected on your credit report can help to raise your credit score. It is not uncommon to find mistakes.
2) Improve Your Credit Score- A low credit score is not something that has to stay with you forever. If you have time before you need an auto loan you can fix some of the negatives on your credit report. Payoff other bills that have smaller balances on them. Be diligent about making your monthly payments on time for your current bills. If you are behind on something try to get caught up and current. Paying down some debt and keeping your current payments on time will really help your credit score. This is the best way to increase your chances for approval and to save you the most money on your next auto loan. By increasing your credit score little by little you will have the advantage when it comes to negotiations with the lender.
3) Save Up some Cash For A Down Payment- Your low credit score is an indicator to the lender that you are a higher lending risk. Putting a substantial down payment towards this loan with help put the lender in an equity position on this loan and show them that you are serious about making these payments on time. If you put down a large down payment and quit making the payments you will lose all of that money if the lender has to repossess the vehicle, most people will not allow that to happen.
4) Be Honest About Your Current Situation- Letting the lender know all the facts of your current financial situation helps them to line you up with the best program they have to offer. Always be accurate on your application. Do not over estimate your income, job time, or residence time or your loan will get rejected in the verifications process. If you are not sure exactly what your income is always estimate low. If it turns out to be more then that’s all the better.
5) Add A Cosigner- If you add a cosigner with good credit to your application it can really save you a lot of money. Their high credit score helps to qualify you for better terms and interest rates. Most lenders will combine your incomes on the application which helps you to fit within their debt to income guidelines they follow. If you were turned down in the past for this reason, adding a cosigner may be all it takes to turn a decline into an approval.
This author has over 20 years of automotive finance experience, specializing in auto loans with bad credit. You can visit [http://www.autoloanswithbadcreditnow.com] for other useful articles and to get approved now. Our lenders boast a 99% approval rate. Easy process. Get approved in minutes.