Getting approved for a low credit auto loan is more difficult than you may be used to. You will need to prepare yourself to submit additional paperwork and be more knowledgeable about your credit report than you would with any other type of loan. Here are a few tips to help get you prepared for the subprime loan process.
- Check your credit score before you shop. This includes knowing if your debt to credit ratio is positive. You will not get a bad credit auto loan if the payments make that ration negative.
- Pull your credit report and score about six months before you apply for a loan. This will give you time to correct any information on your report.
- Do not open or close a credit card account for several months before applying for a second chance auto loan. Opening an account will make lenders think you need a credit card to pay your bills. Closing an account without a balance lowers your debt to credit ratio.
Getting approved for low credit score car loans can seem like jumping through hoops, but the process may be the only way to get your credit back on track. Once through the hoop may save you money in the future.