Getting Approved for a Bad Credit Car Loan
Filed Under (Buy Here Pay Here, Car Loans, No Credit) by bad-credit on 17-10-2009
Lending criteria have changed during the past two years making it a bit tougher for customers to obtain financing for homes or vehicles. If you have bad credit and you are looking to get financed for the purchase of a new or used vehicle you should take a minute to review what lenders currently look for in an applicant.
Below are minimum requirements for a bad credit car loan approval in today’s market:
- Minimum Income: Minimum of $1,900-$2,000 (Buy Here Pay Here lots and Rent to Own car dealers will typically have lower income requirements)
- Bankruptcy: The 341 meeting of creditors must be completed before you can be approved following Chapter 7 Bankruptcy. For Chapter 13, an Authorization to Incur Debt is required from the trustee before approval can be completed
- Repossession: No repo’s within the last year unless it was included as part of a bankruptcy filing.
- Credit Scores: Most mainstream lenders and dealers will work with credit scores above 600, though many Buy Here Pay Here Dealers and Rent to Own dealers may not run a credit check.
Yes, it is a bit tougher to get approved for car loans in our new economy, but it is not impossible. Don’t let tougher credit guidelines scare you away.
Rent to own car dealers and buy here pay here dealers are also doing quite well for themselves in this economy. As more and more people are unable to afford buying a car in cash or qualify for a car loan, they are relying on 
