People With Bad Credit Can Still Get Auto Loans

By Denise Jackson

Financial distress is something that can strike at any time. Sickness or loss of employment can cause payments to be late and black marks to appear on credit reports. This can make getting auto loans a difficult proposition. That does not mean it is impossible because bad credit can be repaired and dealt with accordingly.

Before you talk to a loan officer it is important that you first verify your credit information. To do this you need to get a copy from all three credit reporting agencies. It will then be evident which problems need to be fixed before applying for a loan.

High unpaid past due accounts or habitually late payments are your two worst enemies. Remove these from your file by filing a dispute or by paying them off. Also look for any incorrect information. Some past delinquent accounts that you have paid off may linger on your file and should be removed.

Once your credit worthiness has been established loan officers will look at your employment history. Applicants who have moved from job to job will have little luck getting the financing they need. If you have recently switched jobs but were employed for a long length of time at your last work, it should not be held against you if you have a good reason to have made the switch.

If you find lenders are reluctant to help you, it may be time to make the use of a co-signer. A co-signer is someone with good credit that is willing to sign the loan along with you and guarantee payments. If you default for any reason this person would be liable for the debt.

It is possible to get auto loans when you have bad credit. You will need a copy of your full credit report to verify the information contained and clear up any lingering past due bills. Lenders are willing to work with you and usually will welcome co-signers to help you get a loan for your new ride.

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