How to Get Pre-Approved for a Car Loan with Bad Credit

January 27, 2012

Looking to be pre-approved for car loan when you have bad credit? It is embarrassing to need a car and have the dealership look up your credit and possibly turn you down because of your credit. There are things you can do to ensure that you will be able to drive out of the dealership with the car you need through a pre-approved loan.

Things to Have

  • Valid Driver's License
  • Valid Insurance,
  • Bank Statements
  • Second Chance Car Dealership
  • Co-Signer
  • Your credit score

What to Have Upfront

Check online or with loan or credit union companies and work with them to gain a loan for an automobile. Know the cost of the car that you are wanting and even consider the amount of interest that you will be charged. Amortizations on automobile loans will help you to know the amount of money that you will need to request. If your credit is very bad a co-signer will be able to help you out by having a back-up credit source to work with.

Your Credit Score

Even if your credit score is low you may be able to fix your credit score by viewing the information in your credit report. It is very hard to find a credit report that is perfect. Many of these credit items may be too old to be still listed on the report, and others may not even be yours. With the incidents of identity theft becoming very strong, you might find some reported creditors that are not yours. A pre approval bad credit car loan will be easier for you to gain if you know your credit score up front.

Be Prepared

Know ahead of time what your credit score is, how much your income is and the value of your monetary assets you have in the bank. If you own a home it may be more easy to gain a pre-approved loan using your home as collateral. Be sure you've called some insurance agencies and check to see that you are able to be insured so that when you secure a loan so that visiting your dealership of choice to buy your car will be an easy process.

Second Chance Dealership

You can go online and find second-chance dealerships that will provide you with application and online approval for an amount of money to purchase a car. Because it is very easy to recover a car because of their rights of repossession, many more popular dealerships will be happy to work with a bad credit debtor to give them a second chance at credit and improving their quality of life. Be sure to take that co-signer with you in case a secondary signature may be necessary to drive your dream car off the dealership's lot. With paperwork in hand, even this process will be less difficult. Following these tips can help you find a loan for the money to buy your next car.

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