All over the Internet there are many websites that claim that all applicants of bad credit auto loans online have their applications approved. The truth of the matter is that lenders will always have minimum requirements such as income, age, citizenship, and employment status to determine eligibility of the applicant. There are various auto loan rules which have to
be fulfilled before the lenders give out the loan.
The car loan rules that are the basis of this article are discussed below.
The first one is income. For most of these bad credit auto loans, the lenders will require that the applicant has a minimum of a W-2 or a regular employee making at least $1800 per month in case the credit score is below 640. The income amount referred to here is the gross income before the various deductions.
Employment status is the next consideration. Most of the auto loan lenders require that applicants be in employment for a particular amount of time prior to applying for the loan. Typically auto loan lenders require the applicant to be working for the same employer for at least a year. Applicants must also provide a verifiable employment history running back up to a minimum of 2 years.
Age requirements are the next consideration. In order to apply for a car loan, the applicant must be a valid United States citizen and must be at least 18 years of age. In the case of these 2 conditions they must hold true and there are no exceptions to this rule.
Bankruptcies are the next consideration. Most of the lenders of these auto loans will require that Chapter 7 bankruptcies be discharged. However, some bad credit auto loan lenders will consider your case if your 341 meeting has been finished. In case you are at present in a Chapter 13, you will need to first get an order allowing you acquire additional debt either through the trustee or through the court. It is wise to note that due to current global economic conditions many of the bad credit auto loan lenders are avoiding those applicants in open Chapter 13 bankruptcies looking to apply for car loans.
Vehicle repossessions are the final consideration. All the lenders will look out for any previous repossessions within your credit history. In case you have had a repossession within the last year it needs to be included in the bankruptcy. This applies to both voluntary as well as involuntary repossessions. In case you have repossessions that took place prior to or after the bankruptcy, you won’t qualify for a bad credit auto loan.
Those discussed above are the basic bad credit auto loans rules which an applicant must satisfy prior to being given the loan. Applying for these loans is quite easy since most of the lenders have websites where applicants can fill in their details and hopefully be awarded loans. Our website has helped many individuals all over the country get quality cars while rebuilding their credit at the same time. Apply now and drive your new car home today!