Here is some of the basic criterion that
you must meet to be granted an auto loan:
Proof of income is required. In most
cases the minimum required monthly income is $1,500 per
month or $8.66 per hour with full time employment.
Applicants with no bureau score or rating
must have been working at least 1 year for their current
employer. Auto lenders look more favorably on applicants
that have been working for their current employer for 2
years.
If you have a repossessions with a
deficiency balance that is less than one year old and
not included in bankruptcy, a cash down payment may be
required for you to qualify.
Direct lenders that offer car loans have much
more stringent underwriting criteria than the indirect
car loan lenders available to some licensed auto
dealers. If you've have bad credit and have been
rejected for an auto loan in the past, chances are you
were dealing with a direct lender.
Auto loans are just like any other form
of credit. It is never free of charge. Remember that how
much creditors will charge you for their services
differ, so be sure to check out the competition. And
always find out their rates before you agree to borrow
from them. It is imperative that you review the terms of
your auto loan before you enter into an agreement with
the lender.
You will also want to take into account
the amount of time you will be making payments. For
example, you may get lower monthly payment rates over 3
years than over 2. However, the total finance charges
over time are higher over a longer term.
There is nothing wrong with using an auto
loan to purchase a car, just make sure that you are
informed about your choices of lender. The right choice
will make all the difference when buying your car or
truck.
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