1. Proof of Quality Income
This is a big one, and can be one of two problems.
Problem: First, you must be able to provide proof of payment, which often comes through pay-stubs. The problem, however, is that many employers you do give pay stubs with each payment.
Solution: If this happens to you, then you need to ask your employer for pay stubs or copies of pay statements.
Problem: However, maybe it is not that you do not have accurate proof of payment, but rather, you are not making enough to support the monthly payments of the loan for which you are applying.
Solution: To fix this problem, you have two options—you can try to get approved for a loan of a lower amount, or you can wait until you make more money.
Once you offer proof of Quality Income, you are one step closer to getting approved for a bad credit car loan.
2. Employment Information
Problem: One of the main loan qualifications is a job history of at LEAST 6-12 months with the same employer. Typically, the problem is that you have not been working with your employer long enough to be considered stably employed.
Solution: Find out the minimum requirement for the loan you are applying, and reapply once you have reached that threshold.
3. Auto Insurance
Problem: If you do not have proper auto insurance, then this could be the sole reason for being denied a loan. Every lender requires you to have a full coverage policy on the car you wish to purchase. In some cases, people will have to pay more out of pocket to buy a more expensive full coverage policy.
Solution: Shop around for an insurance policy with a lower full coverage rate or a vehicle that would cost less in premiums.
4. Down Payment
Problem: It is common for most lenders to require a down payment in the form of cash or trade-in-vehicle. If you cannot provide one, then there is a strong likelihood that your lender will not be able to approve your loan.
Solution: Depending on your location, you may be able to find a lender that only requires $500 cash down. Regardless, find out how you will need so you can start to save as much as possible.
Problem: A Cosigner is just another way for a lender to add another layer of security. The cosigner is a guarantee that the money lent will be paid back even if you cannot make the payment. If you have poor credit, there is a good chance that a lender will require a cosigner in order to approve you for a loan.
Solution: You can ask a family member or trusted friend with good credit and income to cosign the loan with you. This is a very valuable and delicate relationship. The cosigner trusts you with their credit; do not take this responsibility lightly.
At Car Credit Rescue, we understand that the loan process can be stressful. That is why we want to make sure you are as prepared as you can be for anything that may come your way. We are here to get you approved and into the car of your dreams.
Find out how easy it is to Get Approved Today!