Lenders have several reasons to turn down applications for bad credit car loans. Among the legitimate causes for denial, two of them stand out from the rest.
Incorrect Form Information
You'd think people would not be careless on an application for an auto loan, especially while having bad or poor credit. Far too often, the loan seeker gets their application rejected due to providing wrong or minimal details. Offer proof of identification, home or cell phone numbers and proof of home ownership or rent location. Make sure the application form has no typos or spelling errors; the creditors may approve a "John" but will probably reject a "oJhn."
The amount of monthly income must be stated on the form. Currently, loan companies won't bother with a borrower who can't give proof of earning at least $1,500 a month — good credit or not. The risk of a loan default makes the creditor shy away from bad credit car loans.
Going to the Wrong Company
Traditionally, car companies avoid auto loans with individuals who have a poor FICO score. Established enterprises like Toyota Financial Services prefer to take their business to people with a history of creditworthiness.
The borrower's goal should be to seek companies that specialize in bad credit car loans; not doing so is like expecting to be served hot dogs at a sandwich shop. There are more than a few moneylenders willing to take on the risks associated with bad credit car loans.
Your best way of finding a company that handles bad credit car loans is by taking your search online. For a modern financial institute, not having their own Web site is a knell for their business. You are virtually guaranteed to find them on the Internet because of this necessity.
Most creditors avoid credit options that seem risky, so act in accord and seek creditors who are willing to take a risk in bad credit car loans. As for the application form, you should treat it like a résumé and make it accurate, truthful and free of errors.