A FICO Score below 620 is considered as a subprime credit score. Traditional lending sources often deny loans to such persons because they belong to the ‘high risk’ category. Individuals with bad credit ratings seek loans from alternative sources. You can order a copy of your credit report once in twelve months according to the Fair Credit Reporting Act. It is always better to check your credit report and be aware of what to expect before you apply for a car loan.
There are a number of factors that could lead to bad credit such as poor financial advice, unexpected loss of employment besides the inexperience of youth. Low scores obviously mean hesitant lending and cringing demeanors of the lenders. Auto-financing becomes a hassle and it can be frustrating when you like a car so much and you want to buy it or the car is just the need of the hour and you are unable to make any headway towards acquiring it.
First, it is important that you help yourself to boost your credit score. And for hard working and conscientious individuals that is not difficult.
The good news is, there is still a minimum eligibility criteria that will help you get a car loan even with a bad credit score. Besides, you should also know that for a person with subprime credit, a bad credit car loan is a great way to rebuild your credit scores. Where traditional lending houses may turn their backs towards you, subprime lenders will give you a helping hand.
The standards prescribed here are not nationwide, but holds good for most bad credit car loans:
• A monthly pre-tax gross income of $1,500
• You should be a legal and a current citizen of the United States
• Age limits are 18 years or older
• You have a guaranteed fixed income or full-time employment
• Recent utility bills that you can show
• Proof of residence
• A working number is listed on your loan application
Bad credit car lending is on a case to case basis where each applicant is considered individually besides taking into account other factors and financial implications that have to be evaluated. Your debt income ratio (DTI) should not exceed 50% and your PTI or payment income ratio cannot overshoot 15% of your income if you are the applicant.
Finally, you must remember just because you have a bad credit score does not mean you have poor work ethics nor is it reflective of your character.
For more information reach out to us at a https://maritimecarloan.com/
Author Bio :
Kevin is a bad credit car loan specialist who is passionate about restoring credit statuses and contributing to economic growth.