There are many requirements you need to meet in order to get approved for a bad credit auto loan. In addition to providing proof of income, residence stability, and a working phone, subprime lenders typically ask that you provide a list of five to eight personal references. The personal references are often a requirement because they help the lender confirm your identity and validate information.
How Lenders Use Your List of Personal References
A list of personal references doesn’t determine approval, but they may help the lender verify information. Subprime lenders usually don’t contact each and every reference you list, but it’s possible they reach out to a few and ask for identity verification, or possibly something else.
Let’s take a closer look at how lenders might use your list of references:
- ID verification – Lenders can use your personal references to make sure you aren’t committing identity theft, and that you are who you say you are on your loan application.
- Contact information – Having a list of references gives the lender backup contact information to use in the event you don’t respond.
- Verify information – Lenders may contact your references to make sure that any information you provided on the application – such as car, work, or residence information – is accurate.
Picking the Right People as References
Now that you know why you need a list of personal references, how do you pick the right people? First, you need to ask them if they’re OK with being listed as a reference. This way, if they do get a call from your lender, they’re not caught off guard when they’re asked about you or your new vehicle.
Typically, bad credit car lenders require at least one family member that doesn’t live with you as a reference. Besides that, just about anyone you know personally can be a personal reference.
When filling out your reference sheet, make sure to include this information:
- Full names
- Home addresses
- Work and personal phone numbers
- Email addresses
If you’re worried about the lender disclosing information about your credit to your references, don’t. All they do is reach out to a reference or two, ask a simple question to verify information, and move on – they aren’t going to share any personal information about you.
Getting the Car Loan You Need
Once you have your list of references ready to go, your next step is to find a dealership to work with, and we can help with that.
At Auto Credit Express, we’ve been assisting bad credit consumers for over 20 years by matching them to local special finance dealers. We know how tough it can be to find financing when your credit isn’t great, and we want to take the stress out of searching for the right dealership.
Fill out our free and secure auto loan request form, and we’ll get right to work connecting you to a dealer near you!