Subprime Bad Credit Auto Loan with No Money Down

Subprime bad credit auto loans are unique in comparison to conventional auto financing in more ways than people are usually aware of. A large difference would be the basic requirements you need to meet before you can qualify for a loan. Read on if you are interested in information on those requirements.

Firstly, it is always useful to look at your income. Only a few banks will take your application into consideration if you have an income around $1,300. Most banks, however, will only consider your application if you have an income around $1,500 if you have a credit score under 640. And remember that these cash amounts are your gross income, meaning the amount of money before taxes are deducted.

You may have a score higher than 640, but you should still have at least the aforementioned monthly income in order to comfortably afford your car payment and auto insurance.

Being considered self employed may make the process a bit more complicated, but don't fear. If you are self-employed, surely you already aware that you do not receive the standard W-2 tax wage and statement around the end of the year. Instead, you will receive the less common 1099-MISC form. Bring self employed, you will have to prove your income from the last three years with tax statements that have been prepared by a professional. Sometimes, banks will also want to see past bank records on top of the tax forms.

Secondly, if you have a history including bankruptcy you must read on. Chapter 7 and Chapter 13 are the two types of bankruptcy you must be aware of. If you qualify for one of these types, you must research and know the proper way to handle this situation. If you don't, no bank will even consider you for subprime financing.

Also know that you cannot have any situation of repossessions within 12 months unless it was involved in an issue of bankruptcy. This goes without saying for some, but please remember you must be at least age 18 in order to apply for a loan. Anyone under 18 is considered a child and therefore cannot legally enter a contract.

To conclude, remember you must have a job history of at least 36 months, with 2 jobs at the most during those months. Remember to have proof of residency, which can be proved simply with utilitiy or cable bills that include your current address and full name. By following these steps, you could obtain auto loans for subprime bad credit even with no money down in no time!



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