We previously looked at finding a lender as well as the income guidelines the majority of lenders follow, while today we’re going to go over the bane of people applying with no credit history: time in the bureau.
Most problem credit lenders require a down payment of either ten percent or $1,000, whichever is less. Everything else being equal, the higher the down payment amount, the better the chances for a loan approval.
In addition, if a trade-in is involved, the equity in the trade can be used towards a down payment. If there is no equity of if the trade is worth less than its payoff, the entire down payment plus cash that equals the negative equity will be needed in order to meet the requirements of the loan approval.
If you’re purchasing a used car, especially if it’s part of your efforts at repairing bad credit, you owe it to yourself to check for any open recalls as well as have it thoroughly inspected before taking delivery.
It’s especially important for people with poor credit to choose an insurance company that’s not only affordable, but also responsive to its policyholders in terms of billing, payment and claims issues. The results of the current J.D. Power U.S. Auto Insurance Study should help steer these car buyers owners in the right direction.
If you have credit issues, you can save yourself a lot of time and frustration by determining, on your own, if you meet the basic requirements of most high-risk lenders – before submitting an application for a bad credit auto loan.
If you have problem credit, chances are you’ll end up applying for a car loan at a dealership that works with a broad range of lenders. How you find that dealer is up to you, but here at Auto Credit Express we want you to know that for over twenty years we’ve been helping customers just like you locate car dealers that can offer the best opportunity for auto loan approvals.
Although the subprime market continued to grow during the first quarter of this year, the increase in repossession rates is sure to cause these finance companies to moderate the pace of lending. If this happens, borrowers with larger down payments (with cash down or real trade equity) who are willing to consider a range of affordable vehicles will have a much better chance of receiving an auto loan approval.