I saw a video that provided kitchen hacks for faster cooking. Spare time and high internet speed led me to a number of videos and articles that provided everyday hacks for making life simpler. That’s when I thought – Why not provide car buyers with bad credit auto loan hacks? And, thus this blog post began.
I have worked in the sub-prime auto financing industry for the past 6 years. I have worked as a loan consultant for car buyers with credit issues. My experience taught me a few things that could guarantee approval on bad credit auto loans. I am sharing it with you.
Smart Work is the Key
In today’s world, a smart worker dominates the hard worker. While getting approved for a bad credit car loan, you need to do the same. If you search at the wrong places, you won’t find your bad credit loan. You don’t have to try hard. Don’t go walking to every lender and bank in the neighborhood. Instead, log in to your computer and search for a lender who provides sub-prime financing. You will find many online auto financing companies that provide bad credit car loans. Research and choose the one that provides services in your city.
Your work doesn’t get over with finding the right subprime lender. You still need to finish the following things for quicker approval.
File your Documents
Lenders need few documents to study your financial health. And, if you keep them ready, your loan process will get over quickly. Here’s what you will need to complete the bad credit car loan file:
1. Financial Statements
2. Recent Pay-Slips
3. Employment Verification Letter
4. Information about the Car, if you have selected any.
Any of these Things can help you
When you have bad credit history, any one of these things can help you in getting guaranteed approval. The reason is that these factors reduce lender’s risk. And, when you reduce the risk factor, lenders become comfortable in approving loan to bad credit customers.
1. Find a co-signer
A co-signer gives you power. With someone to back your loan application, it becomes strong. Also, lender becomes sure of getting back his money. So, he will approve your loan request easily.
2. Spare some money for down payment
Down payment reduces the loan amount. It helps in showing your current financial stability to the lender. The lender will become tension-free when he sees that you can manage such a large amount.
3. Trade-in your old car
If you have less cash and have an old vehicle lying in your garage, you can trade it. This way you will reduce the car loan amount and not spend a single penny out of your pocket.
So, these are the simple hacks that can get you guaranteed approval on bad credit auto loans.
All the best!