The Secrets to Receiving a Bad Credit Auto Loan

April 11, 2011 - PRLog -- If you have a bad credit score, you can apply for a bad credit auto loan. Most of the credit unions and banks use your FICO score. A consumer's FICO scores are an indication of how responsible they have been with all their finances, including loans, credit cards and bank accounts. Your credit score will include effects of bankruptcies, foreclosures and repossessions. The range of credits scores from FICO is between 300 and 900. The applicants with a credit rating above 720 are considered as good customers while those with a score below 600 are termed as risky customers.

Checking Your Credit Rating

If you are planning to apply for a bad credit auto loan, check your credit scores and if you find any loopholes, then report them immediately. Get a free report from the myfico.com website annually. Changes to your credit score would be reflected in the report. This is a great option for poor credit auto financing as well as other types of lending.

Preconditions for Getting a Bad Credit Auto Loan

Documents to prove you are a US or Canadian resident is another requirement for applying for a bad credit auto loan. Utility bills and credit card bill will be sufficient proof of your residence if they have printed on them your address. Most lenders will extend auto loans for bad credit asking you to have at minimum 1,500 dollars of your average income for a month. Without a credit rating, you should show continuous employment at the same employer for a minimum of 12 months. Showing steady employment over a minimum of the past two years can do something to offset a poor credit rating. Lenders often ask bad credit auto loan applicants for higher down payments.

It is a good idea to wait a year if your car was repossessed within the last 12 months. If the car was repossessed because of bankruptcy, try qualifying for a bad credit auto loan. Do some investigating prior to making the actual call or request.

Completing a Bad Credit Auto Loans Form

From state to state interest rates vary, filling out the inquiry form for bad credit auto loans will tell you how the interest rates vary. For bad credit auto loans, you can approach your bank where you have a checking account or even credit unions. A face to face meeting with your loan officer is beneficial. You will need to tell them why you went bankrupt or had your car repossesed. In the majority of cases they're willing to cooperate with you to help you restore your credit score.

You can also apply online for a bad credit auto loan. It's simply a matter of you filling out a form with some basic information including where you live, where you work, and what your financial situation is. The website will connect you with a number of lenders. Depending on your credit score, you will get many different interest rate quotes.

It's possible to bargain with lenders for bad credit auto loans. Try to get best deals possible when you purchase vehicles.

For any question related to bad credit auto loan please visit at http://www.autoloans.us

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