One of the differences between traditional auto loans and those for buyers with questionable credit is the condition for a list of personal references

What we know

For consumers that have experienced recent problem credit need a car loan, there's a real good chance that at some point in the process they'll need to furnish the lender with a list of personal references.

At Auto Credit Express we understand why this happens because for the past twenty years we've been helping car shoppers with bad credit find those new car dealers that can offer them their best chances for car loan approvals.

We'd also like to point out that unlike the credit extended by BHPH dealers, the loans offered through these dealers can help buyers reestablish their car credit and, at the same time, afford them the opportunity to raise their credit scores. But because these loans carry a higher risk than a traditional car loan, there are a number of additional steps that must be followed in order for these lenders to fund a loan (that is, pay the dealer for the car).

Auto loan documentation requirements

How do you qualify for a car loan?

In addition to the normal documentation requirements for car loans such as proof of insurance and a valid driver license, lenders who work with higher risk car buyers usually ask for additional items that, in the business, are known as "stipulations" or simply "stips", for short.

In most cases, one of these items is a list of references.


So what do these lenders mean by a reference? Thankfully it's a lot simpler than it might seem. As far as they're concerned, a reference is simply someone who knows you. This means that the person can be a relative, friend, co-worker, your pastor or even your boss.

Under most circumstances, six of these references will be sufficient. Some lenders ask for only four, but since a few may require more than this it's always a good idea to have at least six names you can use.

Reference specifics

In addition to the person's name, you'll also need to supply the lender with their address and either a work, home or cell phone number where they can be contacted.

Before putting anyone on the list, be sure to get their permission to use their name as well their address and phone number. In addition, you need to be aware of the fact – and you need to let your references know - that during the verification process there is a possibility that they may be contacted by the lender in order to confirm the fact that they know you.

We also have a time saving tip for car buyers to keep in mind: In order for the loan process to move along as efficient as possible for both you and the finance department at the dealership, you'll want to bring your reference list with you when you during your first dealer visit. That's because the more information the finance manager has before the application is transmitted to the lender, the easier it will be to obtain a loan approval.

The Bottom Line

Experience has taught us that it's a good idea to bring along a list of six references from people you know and after getting their permission - complete with their addresses and phone numbers – when you visit the dealership for the first time. You'll find that if you do this the application process will move along more smoothly and, just as importantly, more quickly.

We have just one more tip, and that is if you've experienced some poor credit in the past we want you to know that at Auto Credit Express our specialty is helping consumers find those car dealers that can give them their best opportunities for approved car loans.

So if you're ready to reestablish your car credit, you can begin now by filling out our online car loans application.