Subprime Auto Loan No Money Down

Subprime Bad Credit Auto Loan Basics

First and foremost is income. There are a small amount of banks that will look at your application with a $1,000 gross monthly income, however, most will require you have an income of at least $1,500 per month (gross) if you have subprime or bad credit. Gross income is the money that you earn before taxes. Even with a score higher than 640, your gross income needs to be in this range so you can afford the car payment and full coverage auto insurance.

For the self employed, the situation is more complicated. The self employed don't receive wage and tax statements from an employer at the end of each year. Instead, you get a 1099 form. If you are self-employed, you need to prove income from the past three years with tax statements that are professionally prepared. Sometimes, a lender needs bank records in addition to these tax forms.

Second of the requirements deals with bankruptcy. Chapter 7 bankruptcies must be discharged. If you're in a Chapter 13 bankruptcy, you need to get in touch with the trustee assigned to your case and get an order to incur additional debt from the court. Without this order, no lender will consider you for a subprime bad credit auto loan with no money down.

Next is repossessions. You can't have a repossession within the past 12 months unless it was part of a bankruptcy. This includes both repossession types - voluntary and involuntary.

Next requirement is your age. By law, you must be at least 18 years old to apply for a loan. If you're under 18 years old you cannot apply for a loan because you cannot legally enter a contract.

Finally, you must have a job history and proof of residency. A utility bills that contains your name and current address as well as a phone bill (land line or cell) with your name and your current address will suffice as proof of residency.