Poor Credit Auto Loans
Are you looking for an auto loan but are worried about poor credit? Poor credit, while certainly a hindrance, does not need to stop you from securing auto financing.
A poor credit auto loan is a loan for people who have difficulties getting approved for loans from traditional auto lenders. Local banks and credit unions, as well as lenders such as GMAC, tend to only issue loans to people with good to great credit. But there are companies that specialize in poor credit auto loans. Many of these companies work exclusively with people with poor credit and other credit related issues such as bankruptcy and low-income. As long as you can meet their requirements, chances of securing a poor credit auto loan is good.
What are the requirements of a poor credit auto loan?
The requirements of any loan will depend on a number of factors, but auto loans for people with poor credit will usually be approved if the person applying for the loan has full-time employment and can provide proof of a fixed monthly income. Minimum income requirements will vary, but most lenders will expect you to make at least $1500.00 or more. You should be able to show that your income is such that you'll have little problem covering the minimum payment each month.
Other requirements of a poor credit auto loan may include residing in the country for which you are applying for the loan (United States, Canada, Australia, etc.), the ability to secure insurance for your new vehicle, and proof of residency.
In general, there is one constant in every auto loan for people with poor credit. You will be paying a high interest rate, and that interest rate will cause your monthly payments to be higher than you probably were hoping for. But, if you need a car and don't have the money to make the entire purchase at once, poor credit auto loans are available for those who meet the requirements.