You may have seen or heard of some car dealerships offering discount credit or credit amnesty. This is just another way of saying that they are offering car loans for bad credit so don’t think you are getting real forgiveness but you may still be lucky enough to finance a vehicle even with bad credit. How To Get Auto Credit For Bad Credit? Read on to find out.
Dealers who offer forgiveness for bad credit
When you have bad credit, you won’t be able to walk into a bank or dealership and get approved for financing. Traditional lenders place great importance on your credit score, and you can expect to be turned down if it’s not in the best shape possible.
Regardless of your credit, you should try to get pre-approved from your current bank or credit union. They may be willing to work with you because of your existing relationship, so it’s worth a try.
If you are refused, there are two main types of car dealerships that offer discount credit you should consider the following:
- Special financing dealers – These dealerships work with subprime lenders who specialize in helping car buyers with bad credit. Although subprime lenders check your credit score, they look at other factors to determine approval, such as your income, employment, home stability, down payment, etc.
- Buy here pay here dealers – Buy here pay here resellers are also lenders, which means you can buy a vehicle and get financing all in one place. These dealers usually don’t check your credit and base their approvals on your income and down payment. The main downside is that they may not report the loans or payments to the credit bureaus, which means that you will not be able to improve your credit score with any of these loans.
Bad credit auto loan eligibility
Now that you know the types of dealers you typically need to work with, how do you qualify with a dealership that offers rebate credit?
The first thing is to make sure meet their minimum income and down payment requirements. Most subprime lenders require a minimum monthly pre-tax income of $ 1,500 to $ 2,000 from a single source, although this varies. Buy here, pay here, resellers often have a similar minimum income requirement.
Subprime lenders also generally require a minimum down payment of less than $ 1,000 or 10% of the car’s sale price. The down payment requirement at dealerships Buy Here Pay Here varies more widely and often depends on the price of the vehicle you choose.
In addition, you often need to provide proof of income with a recent pay stub, proof of residency with a recent utility bill, a list of personal references, and proof of having a phone with a phone bill. recent. If you are working with a buy here, pay here reseller, you usually need proof of income and a down payment. Make sure to ask what you specifically need before you go to allow the process to go smoothly.
The bottom line
Things happen and your credit score can take a hit if you fall behind on payments. If this sounds like you and you’re worried about finding a car dealership that offers bad credit discount credit, fear not, Auto Express Credit is here!
For more than 20 years, we’ve helped consumers with credit problems connect with dealers who can help them obtain financing. Complete our fast and free auto loan application form to start today.