Everyone should have a car. But unfortunately, the To each person a car shall be given free of charge is not part of the Constitution of any developed country. While every person with a valid driver s license has the right to drive and own one, cars are not given away to citizens by the government and they do not come cheap.
The only way for 99 of us to get a decent car is to take out an auto loan. For even the wealthiest members of the population, in order to buy a car they must take out an auto loan; it is the rare person who pays cash for a new car. Unless you are willing to drive a very old, run down automobile, you will probably need to qualify for auto loan if you want to be driving your own set of wheels anytime soon.
But, if you have a bad credit score and/or a low income, you may have already been rejected for an auto loan by one or more lenders. This experience may have given you the impression that you will not be able to qualify for a loan with ANY lender. The good news is that there are some lenders out there who will look past your low income and poor credit status and will still be able to fund your auto loan.
If you are wondering how to find auto loans for low income individuals, here are 5 tips for getting funded fast:
1. Start with a car on the lower end of the price range:
It goes without saying that spending less on a new or used car will allow you to take out a smaller car loan. And, of course, a smaller loan will drive up your chances of getting approved. While you may have your eyes on your dream car right about now, you will do better to choose a more reasonably priced car. Then, in a few years when you have saved up more money or have made your first million, you will be in the position to get that dream car!
2. Pay down any outstanding credit card debt as much as you can:
Something else that lenders look at is your debt to income (DTI) ratio. This is simply the relationship between how much money you make and the amount of debt you carry. Since you consider yourself a low income individual, you will also need to have as little debt as possible to keep that ratio low.
3. Protest and get fixed the errors on your credit report:
Another important step in your journey to getting behind the wheel of your new car is to run your credit report. Each of the three major reporting agencies TransUnion, Equifax, and Experian keeps a separate credit report (and score) for you. Run it with each of them and examine each line item carefully. If you discover any falsely reported information, protest the errors immediately. The agencies are obligated to fix them!
4. Gather together any paperwork that shows your work history:
Now, gather any paperwork such as work histories, resumes, letters of reference, etc. Be ready to show this to your auto lender as documentation for your consistent work history.
5. Seek out at least five lenders and apply to all five:
These last tip is very important: you will be tempted to want to stop searching for more lenders when you receive an offer or two. But, resist that temptation! Keep looking, even if you have offers under your belt. The extra time you put in could well pay off in your getting a better rate.
Follow these 5 tips to find auto loans for low income individuals.
![[Valid RSS feed]](http://www.healthandwealth4you.com/images/icon_Rss.png "XML Feed For RSS"){kind=icon}
Category Rss Feed
Print This Article
Add To Favorites
