Bad Credit Auto Loans How To Guide

There are literally thousands of different sources claiming “***You can get an auto loan pre-approved!***” “***Good credit, bad credit, no credit!***” Or “***100% Approval guaranteed!***” Did you notice the “***”? These little Asterix are not there for decoration, or for the sake of drawing more attention to what the message is. What they really represent are the things the dealer would legally have to disclose when making this type of offer. Please refer to the very small lettering at the bottom of any advertisement. There you shall discover what corresponds with these interesting little marks. With all of the dealers out there it makes it difficult to know who to trust. There’s no doubt about it, you’ll need to be prepared. Here are a few helpful hints in order to be prepared, in the event that you have bad credit and you are going to be applying for auto loan.

1. Be proactive in the process – In the current economic climate banks are being held increasingly more accountable for their decisions and lending policies. This means that anytime a consumer has credit related issues and applies for a loan, they may be asked to provide a host of different information. There is no way to know exactly what you will require without actually being submitted to a lender by a dealer.

2. Use a trusted 3rd party source – I want to be sure that when I am giving my personal confidential information to anyone, that they are a legitimate professional and an expert in the bad credit auto loans practice. Nothing is more important to you than your identity. Additional benefits to using a trusted third party include; receiving a referral to a locally accessible reputable dealership tailored for your personal financial and automotive needs. Dealers who have the right programs to get you the best deal the first time, without the embarrassment of being declined and without further damaging your credit rating.

3. Be prepared prior to arrival – The following items are a few of the most commonly requested. Items that you should bring with you whether or not the dealer representative has requested them. This recommendation is only going to save time and money. For the purpose of assessing your ability to repay your car loan, you will need to provide your two most recent paycheck stubs. This will ensure that the annual income provided on your application is correct. Other paperwork that is likely to be required by the lender may include, a current phone or utility bill. This information will be used by the bank to verify your billing location. Other more common items will be required without question. These will include, a current state issued identification card, a current auto insurance card, and any down payment money you may plan on using. These specific items will be necessary no matter what type of credit that you may have. Please keep in mind that this will save your valuable time and money.

4. What to expect – Bad credit auto loans are generally different in nature than car loans with perfect credit.  Here is a layout of the purchasing process to prepare you for your visit to a dealership. Understanding exactly what is going to occur will give you confidence and clarity during the sale. Expect upon your arrival that you will be asked to provide your identification, some personal information, a guest needs analysis will be performed, and the earlier paperwork I spoke of may also be copied. At this point, the representative that you are working with will likely attempt to match a vehicle to your specific needs and wants as accurately as possible. Please remember that, there are many factors that must be taken into consideration when selecting the vehicle or vehicles they show you. Factors that are related to the value of the vehicle and what the lenders requirements are.

5. Be patient – This is not to say that you should spend 12 hours at the dealership. Just as you realize that your situation is difficult, so will your dealer. This process can all be completed in just one visit, if it is properly planned and you follow the steps outlined in this article. You will get the auto loan that you truly need, but you must take the first step. Keep in mind that the journey all begins with an application to a trusted 3rd party source.

Artice by Bradley M. Hammett

Brad Hammett has been a professional in the auto business for more than 7 years. Over those years he ran into many folks that had a very difficult time purchasing a vehicle and so he left the car business to help people find auto credit at New Start is a site designed to help anyone find an auto loan. He is now affiliated with Over time he came to understand the inner workings of a bad credit auto loan and how to get one.

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