Auto Loans With Bad Credit

-If I am on Social Security Disability can I get approved? Yes, Social Security income is guaranteed income every month. Most sub prime lenders will accept Social Security disability income. Be prepared to provide a copy of your award letter from the social security administration. This document outlines what your monthly benefits are for the year. If you need a copy of your award letter you can request one online at http://www.ssa.gov/
 
-Can I get approved without a valid drivers License? No, Most sub prime lenders require full coverage insurance on the vehicle you are purchasing. This ensures them that in the event of an accident or theft the collateral (in this case the vehicle) will be replaced or repaired. Although some states allow you to obtain insurance without a valid driver’s license, most do not. Therefore the majority of lenders will require you to have a valid driver’s license.
 
-If I have been turned down in the past is there any benefit to applying again? Yes, With the current economic conditions the way they are more and more people are finding themselves falling behind on certain bills. This can significantly drop your credit score. You may have the ability to afford a new car payment but your lower score will not allow you to use the traditional sources you have gotten loans from in the past. You need to apply to sub prime lenders. These banks deal with lower credit scores and are just looking for loans to approve. Watch for phrases like “guaranteed approval”, “bad credit ok”, or “re establish you credit with us”. These are indicators that the lender deals in lower credit scores. Once approved over time your credit score will start to rise if you are making timely payments. You can then go back to your traditional lending sources for future loans.
 
-Can I use child support income to get approved? Yes, If your child support is court ordered and directly deposited into your bank account by the state you live in; most sub prime lenders will accept child support income. Be prepared to show a copy of the court order and 3 consecutive bank statements highlighting the direct deposit of the funds.
 
-Does having a cosigner on my loan still help my credit score? Yes, The credit reporting agencies record the payment history on both parties’ credit reports equally. Provided you are making payments on time both you and your cosigner’s credit score will benefit from this loan. Conversely if you are not making payments on time it will affect both of your credit scores negatively.
 
-Does getting a loan from a buy here pay here lot help my credit score? No, Most buy here pay here lots do not report to the credit Burroughs. Although these types of loans do fill a need for some consumers, the payments you make on the loan will not raise your credit score if they do not report to the credit borough. You will however establish a payment history with the entity you originated the loan with so if you intend to keep returning to this lot to purchase automobiles it may help you get approved for a larger loan with them in the future.
 
-Will I qualify for the special low finance rates I see advertised all the time if my credit is bad? No, Most of these special APR rate programs you see advertised for new automobiles are offered by the manufacturers own financing arm. Typically they have very strict credit guidelines to qualify for these rates. The good news is that these rates are usually offered in lieu of a rebate. So if you don’t qualify for the financing you can take the rebate off of the price instead.