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Used car loans for bad credit


Here are some advices for used car loans and some tasty tips on how to apply used car loans if you are having bad credit or had bankruptcy. Getting a car loan for any used cars is easier than you can imagine although there are many rumors said that it is harder than climbing up to Everest Mountain if you are having bad credits. DO NOT fall in dealer’s trap and agree with any high APR loan rate. Check out some of the tips given here.

It is not hard to get a loan if you have bad credit but there are some preparation works to do before you apply for the loan. Understanding what the creditors want before sending your application. What you need to prepare are:

Proof of your income for the loan

No matter who is your guarantor or how good you can write in the application letter, money is always the most important things to prove to the bank. Prepare at least six months of your salary slip or paycheck stub. Prepare a certified copy of your employment letter to prove you are working in the company.

Prepare a clean credit history

Prepare a clean six-month credit history although you had bad credit history before. Six month clean history means you have on-time income every month and there are some saving left every month.

Determine monthly car payment

Creditors would like to see how much you can afford if you apply car loans. Calculate properly the monthly car payment you can afford based on the proof of income you provide. Most of the creditors will accept 1/3 monthly car payment from your income. For example, if your monthly income is $3,000 you may able to pay a maximum of $1000 every month to car loan.

Where can I apply used car loans?

It is very easy to apply for loan although you have bad credit. In U.S, almost quarter of the people is credit-challenger. You can always apply from several companies and compare which one gives you the best rates. At most time, the minimum gross monthly income at least has to be $1,500 or above. Funding Way, Up2Drive, Cars Direct Car Loans are some of the places you can stop by.


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