Auto Loans With Bad Credit

Often time there are 5 basic requirements when you are looking for an auto loan with bad credit. The requirements fall in certain categories that you must have in order to continue with the auto loan process. Each one of our bad credit auto finance specialist's may have additional items you may need to bring with you. Often times when addtional information is needed to complete the auto loan process the special finance manager will let you know before you make the trip to the dealership. 9 out of ten times everything that is needed to complete the auto loan are the following.

5 Basic Bad Credit Auto Loan Requirements

1. Income Information
   For most auto loans with bad credit, the lender will require a minimum monthly W-2 (regular employee) income of $1,500 per month if your credit score is less than 640. This requirement addresses your gross income, meaning the amount you are paid before withholding and Medicare/social security taxes are taken out. Lenders require this minimum income so that you can afford a car payment and full coverage insurance in addition to your other bills. This income requirement is, if you will notice, is for W-2 employees. This means that your employer furnishes you with a W-2 income statement at the end of the year that reflects the wages you were paid. If you receive a 1099 form (which means you are an independent contractor) or you are self-employed, the situation becomes much more complicated. Due to current economic conditions, most bad credit lenders will not accept anything other than W-2 employees. Those lenders that might consider self-employment income will only do so with three previous years of income tax statements that have been professionally prepared. You may even be required to furnish bank statements to support your stated income.
   
   
2. Employment
   As a rule, most bad credit auto loan lenders will require at least one full year with your current employer as well as an additional two years of verifiable employment history.



3. Age and citizenship status
   All auto loans with bad credit applicants must be at least 18 years of age and U.S. citizens. There are no exceptions to these two rules.



4. Any bankruptcy filings
   Again, as a rule, most lenders will require that all Chapter 7 bankruptcies be discharged. If you are currently in a Chapter 13, you must be at least half way through and obtain an order to incur additional debt through the court (this is accomplished through the trustee). But you should also be aware of the fact that in the current economic climate, most lenders want little to do with applicants that are in a current open Chapter 13.



5. Vehicle repossessions
   You need to know that all lenders will look at any repossession in your credit history. If you have any within the past year, it must be included in a bankruptcy (this includes voluntary or involuntary repossessions). If you have a repossession that occurred before or after your bankruptcy, you will not qualify for any kind of auto loans with bad credit.

Those are the usual basic requirements for auto loans with bad credit. If you have any more questions about auto loans with bad credit, there are a number of legitimate web sites where you will find additional information on car loans with bad credit as well as an SSL-encrypted application that you can fill out in the privacy and security of your own home. Our sites have helped thousands of qualified applicants with bad credit obtain reliable transportation and reestablish their credit at the same time.