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Secured Auto Loan Approval? | Auto Express Credit

There are never any collateral in life, but there are ways to help you get the auto loan you need, even with bad credit.

Steps to Alleviate Your Car Loan Problems

Getting a successful auto loan is something you need to be prepared for. Although the requirements you will need to meet vary by lender, there are some guidelines you can prepare to make your loan process easier.

The first step is to know your credit. It means pulling your reports and knowing your score. You can get free credit reports by visiting, and there are several ways to view your score for free. Knowing what lenders see when they review your credit helps you keep a realistic goal in mind.

Meet minimum requirements

When it comes to bad credit auto loans, lenders look for three basic things: your ability to repay a loan, your stability, and your willingness to complete a loan successfully. To learn more about these things, lenders want you to meet certain conditions and back them up with documentation.

Lenders will look at your credit report – your credit history – to determine your willingness, but there are four things you will need to provide to demonstrate your ability and stability. These are known as “stipulations” and are:

  • Proof of earned income – A computer generated pay stub, showing taxable income to date, will be used. A minimum requirement of $ 1,500 to $ 2,000 per month (before tax) for a single job is typical of bad credit auto loans.
  • Proof of address – A current utility bill in your name, showing the address on your loan application, will prove your residence. A good tip is to make sure you have an invoice with an account in good standing.
  • Proof of a working phone – A landline or mobile phone under contract from a national operator in your name will be required. No prepaid phone is accepted.
  • List of references – Six to eight complete references, with names, addresses and phone numbers will generally be used. These can be friends, family or co-workers, as long as they do not live at your address.

Again, these are just the minimums typically required by subprime lenders. These lenders only work indirectly through special finance brokers, so you should be prepared to bring these documents with you when you visit the dealership.

Also note that there are rules related to income and employment that go beyond the minimum. You can read more about the income requirements here. Plus, subprime loans have higher interest rates than traditional loans, and you will need a down payment.

Cultivate Successful Loan Completion

The goal of bad credit auto loans is to improve your credit so that you qualify for a traditional auto loan in the future. Keep in mind that only you can guarantee success your auto loan, and when you do, it can greatly improve your credit situation. This means making all of your payments on time. If you find that you are unable to do so, you should contact your lender immediately to avoid any issues including negative marks on your credit and even a car repossession.

If you’re ready to get auto financing but don’t know where to turn because of your credit situation, Auto Express Credit wants to help. We work with an extensive network of special finance brokers who have loan resources available to help people with credit issues. Let us connect you with a dealer in your area. Our online auto loan application form is free and without obligation. Start today!

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