If you have a credit score in the 480 to 620 range and are looking for auto financing, you’ve probably gotten a bit irritated with the answers that you’ve been given at local car dealerships. Usually, they don’t have the lenders and the resources needed to get someone approved that has that low of a credit score, without your having to pay really high interest rates.
With really bad credit, you have to use lenders that specialize in helping people that are in this situation, and frequently your local dealership may not have the answers that you need.
With a credit score of 550, you’ll need to meet some basic lending requirements in order to get approved. You should be aware that there are sources online that can providelegitimate auto financing for you, but you will have to meet some basic guidelines.
There are programs available through select lenders that will allow you to get a car with little to no down payment. Although you may not qualify for a $40,000.00 vehicle, getting a reasonably priced auto with payments that are affordable is well within reach.
Yes – you can get approved with a credit score of 550. You can actually get approved with a credit score BELOW 550 if you use the right lenders.
Here’s a sample of the typical requirements to get qualified with a good online lender…
1) You have to be 18 years old.
2) You must have a j.o.b. (just over broke) and make at least $1700 per month. If you make more than that, you’ll probably qualify for better programs.
3) If you have a repossession, it needs to have been either over 12 months ago – or it needs to have been a part of a bankruptcy.
4) If you have had a bankruptcy – it needs to be completed. The meeting of creditors needs to be completed and you should have no further obligations. There is one exception… if you’re in a chapter 13 bankruptcy, there are lenders that will approve you if you have permission from the court to incur new debt.
That’s the basic requirements for getting approved with some of the better online lenders. An auto loan is a “secure” loan, as there is collateral – which makes getting approved for a car, easier than a credit card.
So if you have bad credit, you should definitely explore online auto financing. There are companies on the internet that are eager to help you… they’re just waiting for you to find them.
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