I'll ignore the dare and go straight to the truth – not everyone gets approved for a bad credit car loan and here's why…

Why can't I get a car?

Here at Auto Credit Express, I recently received a response to one of my articles and it went something like this, “I have bad credit and I have been trying to get a car for awhile. Every dealer that I've been to wants a big down payment or they can't help me. If that's the case, why do they say no one gets turned down?”

Not everybody qualifies for a loan

As a case in point, our web site, www.autocreditexpress.com, lists some basic requirements on the first page:

1. You must gross at least $1,500 in monthly income if your FICO score is below 625.
2. All bankruptcies must be discharged. (Some lenders will consider a Chapter 13 bankruptcy that is 2/3 completed with an order to incur additional debt.)
3. No repossessions in the last year unless included in a bankruptcy.
4. Loans are for automobile purchases from our authorized licensed dealer partners.
5. US residents at least 18 years of age.

If you can't pass these requirements, chances are you will not qualify for a loan. However, just because you meet these requirements does not guarantee that you'll get approved.

Lenders also look at your debt to income. If your monthly bills exceed 50% of your monthly income, then most lenders will not allow you to take on additional debt. Lenders also consider payment to income. Most lenders will not allow your car payment to exceed 20% of your monthly income.

Lenders also look at the source of your income. If you are a W-2 employee with multiple years at the same job, this works in your favor. If you are self-employed or have less than a year on the job, getting a lender to approve your application could prove to be more difficult.

If I don't get approved now, will I ever get approved?

Many credit situations are temporary. Not enough time on the job can be cured by – you guessed it – more time on the job. Debt to income problems can be solved with either less debt (paying off some of your bills) or more income (changing jobs or getting a raise) and self-employment issues can be resolved with better record keeping and having a tax professional prepare your income taxes. What is holding you back now could change in 6 months or a year.

At Auto Credit Express we won't make empty promises

Here at Auto Credit Express, we will never mislead our customers by using phrases like “all applications accepted” or “guaranteed approval”. We have helped thousands of customers with bad credit get either a new car or a dependable, safe, low-mileage used car through our affiliate dealers. We do this by being up front about the bad credit buying process and by furnishing our customers with the tools – loan calculators and online resources – to make informed choices. As always, if you have any questions that our web site can't answer, feel free to contact us via fax, email or phone from our contact page. Remember, here at Auto Credit Express, we want you “on the road” to better credit!