What Does a Lender Need From Me?

Get Car Financing
Even with poor credit.

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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.


, - February 2, 2018

An applicant should be able to prove their ability, stability, and willingness to pay a loan once they’ve entered the realm of bad credit car loans.

Proving Ability to Pay a Loan

Lenders look upon poor credit as a higher risk, so they’re more careful when evaluating potential borrowers. One of the first things lenders look at is a consumer’s ability to pay back a loan. A potential borrower needs to provide proof they have enough income.

A current computer-generated check stub showing year-to-date taxable income should be enough, but depending on the lender and the time of year, a person may have to provide additional check stubs beyond their most recent. Lenders typically require a minimum $1,500 to $2,000 of gross monthly income from a single source to qualify for their programs.

Showing Stability to Lenders

Once a borrower has met the income requirement, lenders will want to know how stable that income stream is, the applicant’s employment history, and how long they’ve lived in an area.

Potential borrowers can use their check stubs to prove employment history, as well. Lenders typically require three years of employment history with at least six months on the current job.

To provide proof of residence, an applicant needs a current utility bill for the address listed on the loan application, as well as proof of a working landline or contract cell phone from a national carrier. Both of these need to be in the borrower’s name.

Willingness to Make Payments

Finally, lenders look at a person’s credit history to see how likely the applicant is to repay a loan. Payment history makes up the largest part of a FICO score, which lenders use in determining the loan program a borrower qualifies for. Auto lenders take a particularly close look at how borrowers have handled past car loans.

Along with looking into credit history, lenders use personal references. Typically, borrowers must provide a list of six to eight personal references, complete with names, addresses, and phone numbers.

Determining a Dealership

Not all lenders are willing to work with people who have less than perfect credit. Those that do only work through certain special finance dealerships, so it’s important for a person to know where to turn when they need a subprime lender. This saves the time, money, and frustration caused by going from dealer to dealer searching for a loan.

Here at CarsDirect, we specialize in assisting people with bad credit, no credit, and even bankruptcy, by helping to guide them toward a local dealer that has the lending resources available to help. It’s always free of cost and obligation, so what are you waiting for? Fill out our auto loan request form to get started today!

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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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