Bad-Credit Auto Lenders: What DO They Look At Before They Lend?
If you are one of thousands of Americans who cannot get a traditional car loan, you probably are considering bad-credit auto lenders. When you choose to use their services, you already know that they know that you have bad credit. It prompts the question, then, what DO they (the bad-credit lenders) look at before offering you a loan? There are a variety of factors that influence bad-credit auto lenders when they're extending a loan offer.
Employment and Length of Time in Your Job
Employment is huge to these lenders. If you have bad credit and NO job, or if you have not been with your current employer very long, there is almost no chance that you will be offered a loan. Cash flow is vital because these lenders choose to ignore your credit problems in lieu of your employment history and income. If you know you are going to quit one long-time employer to go to a new employer, get your application in to a bad-credit auto lender before you switch jobs, as it will reflect more positively on your application.
A Second Income in Your Household
Bad credit lenders who fund car loans like to see that there is a backup source of income in the event that you lose your job or cannot make your loan payments. If you live with your spouse or significant other, ask him or her if you can use his or her income and information on the application to get your loan. He or she does not have to be a co-signer, but showing that there is another wage earner in the house works to your advantage.
Your Living Arrangements
Do you own your own house or apartment? Do you rent? Are you current on your payments? These are all vital questions the bad credit lender will ask you too. When you own your own home, are current in the payments, and have lived there for at least five years, it says that you are independent and regular with your bills. You can use the same information with living in an apartment, except you will have to wait for the lender to verify with your landlord that you are a "star tenant" before the landlord will consider this. Other examples of financial stability, even though your credit reports show otherwise, speaks to the lender's willingness to work with you and lend you the money you need for a car loan.
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