If you have bad credit and a low income, it's very challenging to get approved for a car loan. This article looks at the basic requirements set forth by companies that do offer auto financing for people in this situation.
If you have low income and are in need of a car loan with bad credit, there are a few options that are available to you. Buy here, pay here car dealerships, local banks and online financing solutions have various pros and cons while online opportunities through companies that have low income requirements may be the most convenient solution.
In-House Dealer Financing
Buy here, pay here car dealerships are car lots that offer to finance their own vehicles without a credit check. A minimum down payment is required in most cases and payments can be made on a weekly, biweekly or monthly basis. The interest rates and prices are usually high, so this option is something that should be considered a last resort.
Your Local Bank
Local banks or credit unions have different loan requirements so you will need to consult with your local resources. If you have an account with a local bank or credit union, then you may find favor when applying locally at one of these locations.
Looking Online
Online financing options for people that have bad credit can offer you an opportunity to be matched with an auto lender that caters to people in your particular situation. Some lenders work with marginal, fair and bad credit, and each lender is different. Some sites have large databases of lenders that you can be matched with based upon lender approval criteria and your credit and income. A low minimum income of $1500.00 per month is required. Bankruptcies must be discharged and repossessions are ok, so long as some requirements are met.
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