Stipulations for Bad Credit Car Loan Qualification

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


, - April 6, 2018

Borrowers with bad credit must meet a number of requirements before lenders will approve them for an auto loan.

Conditions of Bad Credit Car Loans

Proving that a borrower meets all the qualifications a lender requires is a condition of getting a bad credit car loan. Stipulations vary by lender, but there are a few things most ask for.

Bad credit car buyers usually need subprime lenders working exclusively through special finance dealers in order to get a loan. It’s important for borrowers to prepare for their visit with the dealer.

Proof of Income

Borrowers have to show proof of their income with their most recent computer-generated check stub showing year-to-date income, regardless of the amount. Lenders use these check stubs for proof of both taxable income and employment.

Proof of Residency

Borrowers must prove their residency by providing lenders with a current utility bill in their name and for the address listed on their application. This helps a lender see that the borrower has a permanent residence where the car will be parked. Keeping this up to date is important until the borrower pays off their loan.

Other Stipulations

For verification, lenders also need borrowers to show them a few other basics. These include:

  • A valid driver’s license.
  • Personal references – typically six to eight complete references, with names, addresses, and phone numbers.
  • Proof of a working phone – this must be in the borrower’s name. It must also be a landline or a cellphone from a national carrier, prepaid phones aren’t accepted.

Find a Car Loan with Us

No matter what a lender requires of you, preparing to back up those requirements with proof is a must. As a bad credit car buyer, it’s important to provide the right documentation when you’re attempting to get loan approval. If credit challenges are standing in the way of finding a lender who can help you, let CarsDirect lead the way.

We work with an extensive network of special finance dealers that have the lending resources to help people with bad credit, no credit, and even bankruptcy. Get the process started today by filling out our free online auto loan request form now!

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Meghan Carbary has been writing professionally for nearly 20 years. A published journalist in three states, Meghan honed her skills as a feature writer and sports editor. She has now expanded her skill-set into the automotive industry as a content writer for Auto Credit Express, where she contributes to several automotive and auto finance blogs.


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