Ultimate Car Loan Approval Info!
Buy Here Pay Here Car Dealers are loved by so many used car shoppers. They make buying vehicles easier and they accept all credit scores and finance almost everyone with provable income. Here you’ll learn how!
Car Loan Approval
Filling Out The Application for Car Loan Approval:
When you think about buying a new or used car for yourself, you definitely have to pay attention to the make and model, the budget and the financing process. However, with buy here pay here used car dealers, the financing process is made easier with almost everyone approved. You need to take your application very seriously as it can make or break your deal and hamper your chances of acquiring your dream car. However, with the dealers moving to the online realm, most of them accept online applications that are available all the time.
Wednesday, January 25th 2017
The first part in the auto loan application form is about the basic information of the applicants. This information can include the name, the address, the time period of their stay at the current address and the contact details. Other information needed might include the applicants’ date of birth, as well as the mortgage payments details or rent payment details
Sometimes there is an optional piece asking about the social security. This would enable the dealers to get the applicants’ credit reports but they are not interested in credit scores. When they receive the credit reports, they look for red flags, like recent bankruptcies or recent repossessions. They often can help such cases but it can affect the overall loan amount or the monthly payments required.
However, you don’t just have to fill the first section. The application form includes more details that need to be filled out by you. The second section would include details about your income, your job and related details along with a reference. You need to cover your employment in the past 2 years in this case. In the final section, you would have to provide personal references so the company can be sure of your creditworthiness. Those who have a good credit score need 2 references, but bad credit applications would need 5 to 10 references. However, if the application is geared toward Buy Here Pay Here Car Lots, then no credit score will be needed as with these dealers, the score is not important!
Needed documents vary from location to another. Keep in mind that many buy here pay here dealerships are independently owned and operated so they can have separate requirements. Most dealerships, however, agree that the following are needed: proof of income, utility bill to proof current address, and photo ID. Other documents that might be needed include a copy of home mortgage or lease agreement, bank statements, as well as reference letters from friends and family members.
Note that buy here pay here dealers do not aim at financing you for a specific car. They finance you directly and are looking to approve you for a specific loan amount based on your income. Once pre-approval is given, then you can search for whatever car at their dealership within this loan budget.
Be Cautious! Do not write inaccurate information as you could lose the car loan approval. So always focus on the right facts and information.
Note: Traditional vs. BHPH dealers
Traditional lending banks, and hence traditional dealers using the banks, need to see good credit scores to approve you for car financing.
For more information for Chicago shoppers, click on the image below!