Applicants need to know that one of the requirements of most auto loans for bad credit is a list of references.
Every day we work with credit-challenged people who, for various reasons, find themselves with credit problems. This is because our business here at Auto Credit Express is to help as many of our applicants as we can find a car dealer that can get them financed so that they have the opportunity to improve their credit scores and reestablish their car credit.
Applicants can begin this process by filling out our online auto loans for bad credit loan application and financing a vehicle with a bad credit car loan through one of our affiliate dealers. If their application is approved and they make timely payments and successfully complete the loan, these people have a good chance of beginning a new chapter in their lives.
The alternative, which is buying a vehicle from a tote the note car dealer, is not really helpful in the long run because these dealers don't report payments to any of the credit bureaus. This means that when these folks are looking for their next car loan, they will be in the same credit situation they were before their tote the note loan.
On the other hand, taking out a loan with a bad credit lender and choosing to finance a vehicle that's too expensive, in terms of a monthly payment, fuel expenses, or the cost of insurance, can also create problems since this can stretch a budget which could result in repossession – definitely not a good thing
But what we're going to look at today deals with some of information that you need to furnish to the lender at the time of delivery.
Bad credit lender required loan information
In addition to the usual documents required for a loan, such as a credit application and proof of insurance, bad credit auto loan lenders normally have an additional list of requirements, called stipulations (or “stips”) needed as part of the documentation process of car loans with bad credit. One of those “stips” is a list of references from the customer.
The reference list
The definition of a reference is simple: it's someone who knows you. This could be a friend, a relative, your boss, or even a co-worker.
Normally, six references are enough for most bad credit auto loan lenders. Although many lenders only require four, some may require more, so it's always a good idea to have a list of at least six.
In addition to the person's name, you'll also need to furnish the lender with the address and phone number (home or work) of each individual. To save time for both you and the special finance manager, you might even want to bring this list with you when you go to the dealer on your first visit.
Before you add anyone's name to the list, be sure to ask them permission to use their name as well their address and phone number, and be sure to let them know that there is the possibility that they might be contacted by the lender in order to verify that they know you.
To summarize, 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 (drivers license, phone bill and current pay stub or W2 form), when you apply for a bad credit car loan. By doing this, it will make the application process move along more smoothly and quickly.
Another thing to remember is that if you are serious about reestablishing your car credit, we suggest visiting www.autocreditexpress.com. Through our affiliate dealers we have helped thousands of people with bad credit get a new or reliable low mileage used car. More importantly, the car loans with bad credit that finance these vehicles have started these people “on the road” to renewing their auto credit and establishing a good credit history.
So why not begin the process right now by filling out our secure online bad credit car loan application to see what we can do for you.