Most people need an auto loan to be able to purchase a reliable vehicle but what do you do when you need a car loan with bad credit? The answer is simple, there are more and more companies who are offering second chance financing to people who have bad credit. In past years, the majority of consumers have had good to excellent credit but when the economy dropped, so did many once perfect, credit scores. Today there is a record amount of consumers who need a car loan with bad credit so the lenders have tried to change with the times and demands of the people.
Lenders have begun to provide loans for quality vehicles for people who have bad credit. This is because there is a record number of auto buyers who have a credit score of 550 or lower, some even lower than 500. Second chance financing is also called guaranteed auto financing which means that virtually anyone will be approved as long as they meet the income requirements. These are loans that are necessary in today's economy where most people have questionable credit. The second chance loans provide consumers who have had virtually any kind of credit problem to get the financing they need, these issues can include:
Bad Credit, No Problem
Just when most people think they cannot get the car they want, there comes an option for anyone on a tight budget. Second chance financing and guaranteed auto loans provide a service to those who were denied credit in the past and even those who have had credit but have had repossessions, foreclosures and even bankruptcy. Bad credit auto loans are a second chance for those who want a second chance at credit. Everybody falls on hard times at some point and everybody deserves a second chance; which is what these types of loans provide.
Requirements for Guaranteed Loans
There are very few requirements for consumers who are in need of second chance financing or bad credit auto loans. The main requirement is that the buyer has a verifiable income. This income can be virtually anything from employment to spousal support to Social Security benefits. The income verification is so that the lender knows that you have the ability to repay the loan and what type of payment will fit into the budget. Every lender will have different requirements that are specific to them such as references and the minimum time on the job. Once the basic requirements are met, anyone can get the second chance that they have worked so hard for by filling out a simple auto loan application.