Many consumers think that qualifying for auto financing with extremely bad credit is only available with buy here pay here lenders. However, there are auto financing terms for those with very low credit available with AutoNet Financial.
All a person has to do to get approved for a car loan with horrible credit is meet the financing requirements and be paired with a lender. By being employed, having a monthly income, and a good debt-to-income ratio a person can satisfy our stipulations.
Employment Status with Very Bad Credit Loans
An important part of qualifying for bad credit auto loans can easily be found in the employment status and history of a consumer. Lenders generally ask for a person to have their last few pay stubs available when applying for loan, as a way to prove they are employed and how long they have held their current position. Lengthy periods of employment can work in the favor of an applicant, while multiple short stints of employment can cause a lender to second guess your application.
Reliable Monthly Income
Now contrary to what some might think it is possible to have a monthly income without being employed, and certain lenders will accept this when applying for an extremely poor credit loan. Consumers who utilize social security, retirement funds, disability incomes, or other forms of monthly financial gains can easily use these if they are unable produce W-2 form. However, not every dealer is willing to accept this with very bad credit loans, while others will require a borrower to provide proof of this type of income by means of a check stub and/or bank statement.
Debt-to-Income Ratio
Aside from being employed and having a good monthly income, an applicant for sub prime car loans must also be aware of their debt-to-income ratio. This ratio is used by car finance companies to determine how much of a person's income is used to settle their current bills and payments. If too much a person's debt consumes their income a dealer may find them unfit for auto financing and deny their application.
So can a person with extremely bad credit can qualify for auto financing from a lender? Yes, but in order to do so they have to make sure that their employment, income, and debt-to-income ration aligns perfectly with a lender's stipulations. If they are able to accomplish this it will be very easy qualify for a car loan no matter how poor an individual's credit rating may be.
