How To Get Car Credit With A Bad Credit Score
In the economic down turn being experienced worldwide, people are making use of any resources available to them to keep heads above water. In the process many people cannot save enough to buy a car, thus the need for car credit. It is easy to get a car loan to purchase the car of your dreams; all you need is to meet some requirements.
People with bad credit scores will bear witness that many car dealerships turned them down. This is because bad credit scores scare away the lenders. A bad credit score report tells the lender that they should be cautioned when approving your car credit application. A poor credit rating indicates that you credit worthiness is questionable. Before you even think of getting car credit, you will need to have your credit score in hand. Though many car dealers will turn you away because of the bad credit score you may have, there is still some hope for you. You can always get car loans from credit unions and banks where you hold a checking account. A bad credit score will attract higher interest rates with a shorter term of repayment.
To get car credit you will have to prove that you are of legal age to apply for a car loan. For this purpose you will need to provide all the official documents that prove your age. Such documents include the social security card. Others may include passports and national identity cards. The lenders cannot provide minors with car loans. Another requirement is that you should be earning more than $20,000 per year. This translates to above $1,500 per month. Most car dealers work with this figure and will usually approve your car credit application only after you prove this. The lenders want to know that you will be able to pay for the loan.
You will need to have held down a permanent job for a consistent period of more than six months. This serves as assurance to the lenders that you can actually pay for the loan. The longer the period of employment the better it will be for you. Many lenders assume that, employees that have worked for a longer time are always responsible. This will greatly affect the terms that will be imposed on the car credit.
After you are confident that all other requirements, it would be better if make the initial down payment for the loan. You should however be cautious on the internet. There are several parties that masquerade as companies that offer car credit to people with bad credit. They run schemes to con people.About the Author:
Jeff Whitlong has been a part of the car credit industry for many years and writes and publishes articles to help consumers better understand car credit and more specifically, bad car credit. Jeff answers common questions consumers have about car credit in his articles and news posts.Article Source: - How To Get Car Credit With A Bad Credit Score