Not everyone can escape the aftermath of the bad economic state right now. For those who have bad credit and low credit scores, purchasing a used car may prove to be a difficult thing. What if you need to acquire a new car but your credit scores say you can’t, what should you do?
Car financing is the last resort and sometimes the only option of many people today. Many individuals are struggling to make ends meet. They are still in the process of getting themselves back together after being affected by recession and bankruptcy. In this case, bad credit auto loans are their only chance to acquire a new or used car.
To qualify for bad credit auto loans, most lenders require borrowers a provable monthly income of at least $1500. The amount varies depending on the lender. Borrowers should be able to obtain automobile insurance. Car buyers should also be currently employed full time, or can present any proof of stable income for the duration of the loan.
Immigrants who are still in the process of establishing their credit score have a high chance of qualifying for bad credit auto loans provided they have a stable, full time job. The same thing applies to people who are recovering from bankruptcy.
Unfortunately, people with temporary employment do not merit for an approval. Contractual employees and seasonal employment provide insufficient assurance that the borrower can pay for his loan. People who make extra money here and there but cannot disclose or explain where their “salary” comes from will mostly be rejected too. Lastly, a recent repossession will definitely call for disqualification. If this is the case, the borrower needs to recuperate to regain his financial strength.
An automobile is a necessity in this day and age. Fortunately, more and more auto finance companies make it possible and convenient for people with bad or low credit scores to afford a car.