Get An Auto Loan Even With A Low Credit Score
Other factors considered for a subprime auto loan
Auto loans can be a great way of getting access to a vehicle - something that can make life a whole lot easier in so many ways. Not everyone is lucky enough to have a high credit score, however, making access to loans more difficult. For consumers with moderate scores, there is still a chance to get a subprime loan.
In the eyes of a lender, it doesn't matter how you developed a poor credit score, it only matters that it is low. This can be damning for any potential loan application that you make. In the majority of cases, most lenders will only work with people who have good credit. The auto loan industry has become a little more flexible in recent years, however, largely because it is easier to repossess a car than it is a home. This means there's more hope for those without high credit scores to back them up.
There is no universal standard for subprime auto loan qualification, but lenders typically want to see a pre-tax income of at least $1,500 to $1,800 per month. Also, borrowers normally have to provide a down payment, documents showing their U.S. citizenship, and details of a phone from one of the major carriers.
Auto loan lenders will still want to see a credit score, but a low score won't necessarily result in an instant refusal, because subprime lenders also take other factors into account. These include factors such as employment, recurring debt levels, proof of residence, and income. It is worthwhile talking with lenders, as getting a loan could be easier than you might believe.