Auto Credit Express helps people with bad, thin, and no credit find auto financing. We've been doing this for close to 20 years now, so we know a thing or two about getting approved for an auto loan with bad credit. Bad credit doesn't need to stop you from getting a car loan, but it does change some aspects of the buying procedure. We'd like to take the time to run through the auto financing process when you have bad credit.

Loan Providers

Auto Financing Process

Most banks and credit unions do not approve auto loans for applicants with bad credit. Instead, these borrowers must look for a dealership with a special finance department or find a subprime lender online.

Subprime lenders are willing to work with applicants with poor credit because they consider other factors. But these others factors also mean that you have to meet a few more requirements.

Requirements You Must Meet

Subprime lenders will typically have certain basic requirements that a bad credit auto loan applicant has to meet. These include:

  • A minimum monthly income of $1,500-$1,800
  • Borrower is 18 years of age or older
  • Applicant is a current resident and legal citizen or a legal resident of the U.S. or Canada
  • Full-time employment or a guaranteed fixed income

On top of that, subprime lenders may also require a down payment or a cosigner in order for a loan to be approved. And in another difference, they will also require documents verifying these requirements.

Documentation Needed

Subprime lenders will need to see documents in a number of areas. These include:

  • A valid driver's license
  • Proof of income/employment - A computer-generated pay stub with your year-to-date earnings listed that is less than 30 days old.
  • Proof of residency - A utility bill with your name and address on it. This must be the same address stated on the loan application.
  • A list of six personal references with names, addresses and phone numbers included.
  • A working phone, with a phone bill in your name at your address. It can be a cell phone, but it cannot be a pre-paid one.
  • Proof of full coverage car insurance

The Order of the Process

When getting an auto loan with bad credit, actually choosing the car comes near the end of the process. This is because the lender must first approve your application and then set a maximum payment amount plus the interest rate tier.

Once those are set, you are able to choose from the vehicles you qualify for in a dealership's inventory. Lenders do this to make sure that you only finance a vehicle you can afford.

Finding the Connections that Can Help

The Auto Credit Express team understands that it can be tough for you to find a dealership with subprime lending connections. This is why we've streamlined that process to make it as fast and easy as possible.

All you need to do is complete our free and secure online application. From there, we'll connect you with a dealership that can give you your best chance at an approval. The sooner you apply, the sooner we can get to work for you. Start today.