Traditional banks and lending institutions have very strict guidelines regarding who they will lend to and the type of collateral needed for a loan. Typically these lenders do not provide car loans to people without a credit check from auto dealers where your job is your credit. For example, many banks have specific requirements as to how old the vehicle can be.
New cars are classified as one year old and newer vehicles that have not been titled. Used cars are generally limited by their mileage and age, with many banks refusing to finance any vehicle over 8 years old (they can be as short as 5 years) with mileage cutoffs for most vehicles based on their age.
This begs the question: If you have a job and your application for a conventional car loan has been rejected due to a low credit score, does this mean that you will be unable to borrow money for a car? Do you need to find one of the many your job is your credit auto loans available?
In most cases, the answer is "no". There's still a very good chance that this individual could qualify for one of the auto loans offered in today's lending market when using your paycheck as your credit. These auto loans are offered through retail job is your credit car dealers by lenders that specialize in approving financing to subprime borrowers.
Don't get these lenders confused with other special financing companies for poor credit that use bait and switch tactics on late night television and the internet by advertising "rates as low as 3.9% interest" or "all applications accepted". Those 3.9% interest rate loans will only be offered to those applicants with the best credit. Applicants with poor credit hoping to get approved for auto loans may not qualify for this rate and, if they apply and get approved, could end up paying the maximum interest rate allowed by their state.
In the past, consumers looking for your job is your credit auto loans have had few options. Fortunately, the internet has opened up a world of new opportunities. The best online car financing bad credit application sites have helped thousands of consumers with tarnished credit reestablish their car credit and raise their credit scores with low credit auto loans.
The dealers affiliated with these sites specialize in your job is your credit car lots and work with a broad spectrum of subprime lenders. And while you'll pay a higher interest rate than a person with a credit score of 750 or more, your payments will be reported to the credit bureau so that, once you're at least two-thirds of the way through your loan, you should be able either to refinance your current loan or trade in your current vehicle and begin a new car loan at a lower interest rate.
One more thing to remember about the your paycheck is your credit car loan process: know your credit score before you begin. You should also check with your bank or credit union before you begin, since there may be a possibility you could qualify for a loan from them.
As far as your credit report is concerned, you should always request a copy before you begin the bad credit auto loan process. After a thorough review, you may find that you have a chance to raise your credit score by correcting the mistakes it contains. Errors in reporting can result in a lower credit score and correcting these errors can take as long as 30 days. So you should give yourself plenty of time.
Bad credit auto loans are a means to an end. By paying your bills on time and staying within a budget, your credit score is bound to improve.
We have 20 years of practice in special finance and work directly with special finance car dealers and the leading automotive financing lenders throughout all of North America. The knowledge and expertise we have gained through years of poor credit loans enables us to give you the best assistance possible for your personal situation.