Consumer Car Buying Advice Blog

Applicants need to know that one of the requirements of most auto loans for bad credit is a list of references.

The basics

We work with credit-challenged consumers who, for various reasons, find themselves with credit problems. As part of our business at Auto Credit Express, we have helped many of these same individuals raise their credit scores and reestablish their car credit by filling out an online auto loans for bad credit loan application and financing a vehicle with a bad credit car loan through one of our affiliate dealers. By doing this they have a good chance of beginning a new chapter in their lives.

The alternative, buying a vehicle from a Tote the Note, We Finance Everyone car dealer, can be a problem because these dealers don’t report payments to any of the credit bureaus. On the other hand, taking out a loan with a bad credit lender and choosing a vehicle that’s too expensive can also create problems since this can stretch your budget and even result in repossession.

One thing we have learned from experience is that the key to a successful bad credit auto loan means focusing on the basics. In order to rebuild your credit, you need to understand how the bad credit auto loan process works, including an understanding of some of the more common loan stipulations.

Loan stips

In addition to the usual documents required for a loan, such as a credit application, bad credit car loan lenders normally have an additional list of requirements, called stipulations (or “stips”) needed during the documentation process of a subprime car loan. One of those “stips” is a list of references.

Your references

The definition of a reference is simple: it’s someone who knows you. The reference can be a friend, a relative, your boss, or even a co-worker.

Normally, six references are enough for most bad credit auto loan lenders. Although many lenders only require four, some may require more, so it’s always a good idea to have a list of at least six.

Reference information

In addition to the person’s name, you’ll also need the address and phone number (home or work) for each individual. If you bring this list with you when you go to the dealer on your first visit, it will save both you and the special finance manager a lot of time. Before you put anyone on the list, be sure to ask them permission to use their name as well as the rest of their personal information, and let them know that there is the possibility that they might be contacted by the lender in order to verify that they know you.

The Bottom Line

To summarize, have a list of 6 references (complete with addresses and phone numbers) with you, along with the other stipulations, when you apply for a bad credit car loan. By doing this, it will make the application process move along more smoothly and quickly.

One other thing to remember is that if you are serious about reestablishing your auto credit, we suggest visiting www.autocreditexpress.com. Through our affiliate dealers we have helped thousands of people with bad credit get a new or reliable low mileage used car. More importantly, the car loans with bad credit that finance these vehicles have started these people “on the road” to renewing their auto credit and establishing a good credit history.

Fill out an application

So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.

Tags: auto credit, Bad Credit, car credit, credit, credit history, credit problems, credit score, credit scores, repossession, tote the note

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