Top 5 Factors that Will Prevent One from Getting a Bad Credit Auto Loan

Having bad credit alone will not prevent you from getting an auto loan, despite what you may have heard, its’ a bit more difficult to get financing sometimes but nowhere near impossible, don’t believe the hype.

Here are five factors that would prevent someone from getting a bad credit auto loan:

1. The number one thing that would prevent you from securing that loan would be not having enough money for the down payment; thought you could go online and a lender would just give you a car without you putting up at least some collateral, well, think again, buddy.  Putting down 20 percent is best, as that will show the lender that you mean business.  So, save your pennies for a rainy day and you’ll get those wheels that you desire.


2. You have to have an address.  Some people may be thinking -- ahh yeah…everyone should know that!  Think a minute, though,” everyone” doesn’t know a whole lot of things.  So hobos, listen up , you can’t live at your girlfriend’s one month and your auntie’s house the next month, please have a steady address, this shows the lender that you’re a grown up and that you pay rent, and that you pay it on time.


3. Not having a driver’s license is yet another factor that would prevent you from securing that loan, we know, brutal, but there has to be some standards, right?  If your license is suspended or you don’t have one you’re going to have to wait until you can patch things up, sorry, those are the rules.   Go get your ducks in a row.


4. Not having a job or proof of income is going to shut down that bad credit auto loan faster than you can say - jack rabbit slim.  So, please realize that you have to have proof that you can make the payments on that car loan or it’s just not going to happen.  Having bad credit won’t keep you from owning a car, but not have a job might, so if you don’t have a job, start pounding the pavement.  You don’t even need to have a great job, just something to show the lender that money is coming in every 2 weeks.


5. Lastly, if you are going through a bankruptcy that has not yet been dismissed or  closed, or, if you have an IRS tax levy bearing down on you it’s going to be  difficult if not impossible to get that car loan.  However, for everyone else, you should be good.  See, it’s not so bad at all.

If you have a job, a residence, and a driver’s license chances are you will find someone to finance your car loan.  Getting a super low rate, well, that is going to be tough, but at least you can drive to work now.