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Can You Obtain an Auto Loan Even with Your Bad Credit?

Some people are interested to get an auto loan but have a bad credit. If you have a bad credit record, this could affect your chances in getting an auto loan. Do not be dismay because you can still get auto loans even if your credit is bad provided you meet some requirements with this regard. We will present here the definition of this type of loan and will lead you to how you can get it.

Let us answer the question first on what is this auto loan for bad credit. An auto loan is for those individuals who are finding it difficult to get a loan through the traditional ways.

In order for a person to obtain a bad credit auto loan, he or she should have a low credit score, have filed bankruptcy, has a low income bracket and has no money to deposit on a car, or had a car repossessed in the past.
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Be informed also that you cannot obtain a bad credit auto loan for the following reasons, and these are if you do not have a permanent job, if you are unable to show proof of income, and if you underwent recently a repossession.
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There are basic qualifiers for you to get a bad credit auto loan, and these are that you must be at least 18 years of age, have a $1,500 minimum monthly income, at present residing in the U.S. and are a citizen, and you have employed full time with a fixed salary that can cover payment for the loan term. On top of these, it is helpful if you have a working phone number and proof of residency that can be shown through your credit card statement or utility bill.

A proof of income is usually asked in getting a poor credit auto loan depending on circumstances. Example of your proof of income would be your payment stub and your previous tax return so the lender can validate. In a situation when you are self employed, your proof of income would come through your tax returns for at least three years, and to have this, you can hire a professional tax preparer who will make the document showing your profits.

Usually, in assisting funding for a car loan, dealers will look at the age of the car, and their cut off is seven years old.

Your bad credit auto loan can be funded through franchised dealers, since they usually are the ones who can give at a higher standards. Usually, once the loans are funded by these franchisers, they assign it to a finance company. Be informed also that if you buy your car from a so called buy here/pay here car dealer, a third party payment processor will usually service your loan.