Getting a Bad Credit or No Credit Auto Loan

Author: Dale Rogers

Article:
Everyday people swamp into the dealerships all across the US,
looking at new or pre owned vehicles. Getting an auto loan can
be challenging, but there are different options depending on
your credit score and credit history. Bad credit shouldn't stop
anyone from getting a car loan, it may be obtainable to even the
worst situations. But, be prepared you may have to provide such
things as: proof of residence, most recent pay check stubs, and
maybe even references. Bad credit car loans are harder to get
than good credit car loans, it just depends on the situation,
also a huge factor that plays a role in a car loan is money
down. If one puts a good amount of money down toward a car (a
couple thousand) is going to increase the your chances of
getting approved. The amount of money down that you put towards
your new car loan will not only make your application look
better but it will also lower the risk for the lender. Bad
credit or no credit is a risk for the lenders because of the
previous credit history, it affects the way that they look at
it. If one is putting no money down and looking to purchase a
car even if it's inexpensive, it will be pretty hard to
accomplish. This is because of the previous credit history, and
the lender doesn't have any collateral. Also with a large amount
of money down this will help get the attention of more lenders,
getting you competitive rates, and a better chance to get
approved for your new car. Also take into consideration the
vehicles that your are choosing, you must be flexible with the
payments, but at the same time you have to make sure it's
affordable and fits your budget. If it doesn't meet your budget
and you finance the car anyways. You may end up getting it
repossessed within a few months or years. Look for vehicles that
book out to their value. A book out is the amount that a certain
car can get loaned up to. So by choosing a car that doesn't hold
its value may not be the right choice, because the bank may not
even finance you on that particular car. The most essential
things that one needs to take into consideration when purchasing
a car with bad credit or no credit is the money that you put
down, credit history, time on job, take home pay, and the car
itself. If its possible for someone to co-sign for the vehicle
that may be something to take into consideration, but it also
may be a risk for the person co-signing. The co-signer should
have very good credit, or excellent credit. Remember the lower
the risk for the lenders, the lower the rates, easier chance for
approval, so gather as much money down before your start car
shopping. This will definitely benefit you in the end. Be
prepared to provide these documents in order to get you approved
for a loan. It is to your benefit and it help your chances of
getting competitive rates with more lenders interested in
financing your car. Dale Rogers http://www.brokencredit.com

About the author:
Dale Rogers provides valuable information to the Broken Credit
Blog. He's an expert on bad credit, no credit loans, helping
people achieve their dream of buying a new car or home. The
Broken Credit Blog is a free site created to assist the public
with information on credit repair, responsible lending.
www.BrokenCredit.com