For example, the lender may order a credit inquiry but "pulling your own score is essential for a few reasons." Consumers should always ensure that their credit profile is correct so they will be able to get the lowest rate available based on their true score. It is at this time that any possible identity theft can be detected.
"When applying for bad credit auto loans bear in mind that financing companies cannot process any loans for approval unless you have a steady income through self employment or a job that is legal. For instance, you should be permitted to earn income the United States, the cash you get from your job must be accounted for on your tax returns, any employer that is listed on the loan application should be located at a physical address, not a PO Box, and the person that is listed as the contact person must have the authority to confirm when you started working for the company and what you make. If you have this, you have most of what it takes to qualify." (http://www.lowratesearch.com/
"If there is another type of income that is being received instead of, or in addition to, being employed (like child support), documentation must be in place to support it." Applicants must be able to show proof that this income is being received on a consistent basis over a certain period of time. This is the only way a lender will consider it on the auto loan application. "If you are honest about your earnings when you fill out your bad credit auto loan quote request, there should not be any problems with submitting a copy of your earnings statements once the lender asks for them."
Income tax returns. In some cases, it may be necessary to provide a copy of recent tax forms. People that run their own company are usually required to present their financials for the last couple years. This is to help the finance company approve the loan quickly.
Certain bad credit auto loan applications require proof of a particular type of bill such as the phone bill or some other bill that you receive at your home address. "Do not be surprised if your loan representative needs this type of information. This helps the loan company verify where you live."
An existing checking or savings account. "This information might be a mandatory requirement by your lender for a couple of reasons. Number one, it is another manner in which your home address can be validated. Mail from lending institutions is typically mailed to your home therefore this information should match the information listed on your application. Another reason is when you are a high risk candidate, often times the lenders might want you to possess a checking or savings account that could be configured with an automatic debit to ensure timely loan payments. Using this system, lending institutions have the assurance that your payment will be completed as agreed. Always remember, these debits can only be done if you approve them."
More cash down. Sometimes when an application is not approved it is not because of the FICO score, it may be that the lending institution has determined the amount that the borrow amount exceeds the amount that the debt-to-income ratio can handle right now. But, "if you can decrease the amount of the loan, you could get an approval for a little less."
A co-applicant. This may be the final resort, however "if you can call on a spouse, close relative, or friend with a good credit history who is available to apply as a joint applicant, you may want to ask them for their help to get the loan approved. Keep in mind that if the loan is not repaid in a timely fashion the credit score of the joint applicant may be adversely affected. So always be responsible at all times if you have someone that is nice enough to help you out."
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