In the past, getting bad credit auto loans meant that you had to have a cosigner with you who could leverage their good credit against your bad to help you get the auto loan that you needed. Now, however, car loan lenders are making it increasingly easy for people to get the financing that they need without necessarily requiring that they enlist the assistance of a cosigner. If you are looking for assistance for bad credit auto loans but you do not have a cosigner available to help you out, the following information may prove to be invaluable.
There are several options available if you are looking for bad credit car loans. While many car dealerships have turned toward only providing auto loans for "well qualified" applicants, there are abundant other sources for auto loans, even if you do not have perfect credit.
CarsDirect helps more credit-challenged customers find car loans than any other website in the country. The company works with a network of dealers who specialize in car loan financing. The dealer has access to a number of financial institutions and will shop around to find you the best deal. Just fill out a simple application and you will be on your way to receiving a car loan.
How much Lower would Your Car Payments be with a Co-Signer?
Getting a co-signer for your bad credit loans can lower your car payments monthly. But the actual amount that will get reduced will depend on the profile of your co-signer, and the lender that is responsible for your loan. If you have a co-signer who has a really strong credit rating of 720 or more and upward, you can easily get a lower interest rate on your loan by as much as 3% less than what you have already been quoted. You can start by checking with online calculators linked to reliable sites like Yahoo Finance which will give the exact interest rate for your loan. Please note that this is completely dependent on the individual lender.For a Car Loan Application, what Constitutes a "Well Qualified" Applicant?
When you make a car loan application, lenders will review your credit history to find out your eligibility for loans. Its a simple way of guaranteeing that you will be able to repay the loan that you have taken. A well qualified candidate will have the following:
- A good credit rating of 700 and more
- A few lenders will evaluate your employment history, the length of employment at each company and the salary you are currently receiving. Future income probabilities from the same job are also counted. Working at the same job with regular pay hikes are a point in your favor.
- Low debt to income ratios also work in your favor. If you have no other loans, then you are more likely to be approved for a loan even with a bad credit history.
- See what kind of interest rates you can get >>
Please note that each individual lender will have preferences they follow while authorizing loans.