Consumer Car Buying Advice Blog

If you plan on financing your next car with a bad credit auto loan you need to be prepared to bring a list of references

In the know

If you have bad credit and need to finance your next car with a bad credit auto loan, you need to be aware of some of the addition information most bad credit lenders require. We’ve been through this procedure thousands of times because at Auto Credit Express we’ve been working with poor credit car buyers for more than two decades.

In fact, after hearing about the embarrassment and frustration that customers with bad credit often face, we created a web site that features a bad credit auto loan application. We then match up these applicants with dealers in their area that specialize in a broad range of customer credit issues.

The alternative for most of these buyers, which means buying a vehicle from a tote the note dealer, doesn’t solve their problems since normally these dealers don’t report car loans or payments to the credit bureaus. It can also result in a greater chance of repossession.

But in addition to being a different process than a regular car loan, there are additional items required by bad credit lenders that you’ll need to give to the dealer/special finance manager either before or at the time of delivery.

Lender stipulations

In addition to the usual documents required for a car loan, such as proof of car insurance and a credit application, bad credit lenders normally have additional requirements, called stipulations (or “stips”) that are needed as part of the documentation process for bad credit car loans. One of those “stips” is a list of references from the customer.

Your references

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

Normally, a list of six references will usually meet the requirements for most bad credit lenders. Although many lenders ask for only four, some may require more so it’s always a good idea to have at least six.

Reference information

In addition to the person’s name, you’ll also need to furnish the address and phone number (home or work) of each person on the list. In order to save time for both you and the finance manager, you might even want to bring this list in with you on your first visit to the dealer.

Before adding anyone’s name to the list, be sure to ask them permission to use their name as well their address and phone number. Also, make sure they know that there is the possibility they might be contacted by the lender in order to verify that they know you.

In Summary

It’s always a good idea to carry a list of 6 references (complete with addresses and phone numbers) with you, along with the other documents (driver’s license, phone bill and current pay stub or W2 form) you’ll need when you visit the dealer for the first time. By doing this, it makes the application process move along more smoothly and quickly.

Auto Credit Express has helped thousands of people with bad credit buy cars and reestablish their car credit at the same time. Our nationwide network of affiliate dealers specializes in bad auto credit.

So if you are serious about getting your car credit back on track, you can begin the process right now by filling out our secure online bad credit car loan application.

Tags: Bad Credit, bad credit auto loan, bad credit car loan

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