You're about to buy a new vehicle. Do you have everything you need to ensure that you get approved for your auto loan?

Buying a car can be an exciting event or it can be a downright nightmare of wasted time and frustration. And for car buyers with damaged credit, the latter is often more common. What can you do to make your situation more like the former if you are dealing with a unique financial situation?

How Is Your Credit?

auto loan
Even if you know your credit isn't in the best state, it is still a good idea to know where you stand. And getting the lowdown on your credit history isn't as hard or as time consuming as you think. You can get one complimentary copy of your credit report annually from each of the three major credit reporting agencies (Equifax, TransUnion and Experian). In addition to that, there are multiple online services that offer you access to your reports free of charge. However, in most cases, if you need to find out your credit scores, there is a small fee.

While you may not have time to correct any issues on your credit report, by accessing it and looking over your history, you will have a better idea of whether or not what a finance manager has to say about your credit standing is legitimate.

The Right Documents

A huge time-waster for car buyers and everyone else involved is the lack of proper documentation. Not having all of the necessary documents with you for the dealer and lender can turn what should be a relatively quick process into a multi-day or week-long event. Before you visit the dealer, be sure to speak with them and find out what you will definitely need to bring with you. Typically, you will need the items listed below:

  • A recent utility bill
  • Last two pay stubs
  • Six personal references
  • Proof of insurance
  • Driver's license
  • Your most recent phone bill
  • If you have been through a bankruptcy, bring your discharge papers.

Do You Have Qualifying Income?

In order to get approved, be sure that you know that you make enough money in order to meet the lender's minimum financing requirements. You will also want to be sure that this income is verifiable through tax forms or pay statements, and is also garnishable.

How About a Down Payment?

Typically, lenders want to see a buyer provide cash up front as a down payment, or at least have the funds to cover tax, title and license fees (TTL). A down payment shows the lender that you are willing to make a financial commitment to the purchase. And if your cash is limited, trading in a vehicle with equity may help you.

Helpful Bad Credit Auto Loan Tips

Find out how much you can be financed for before selecting a vehicle.
It's never fun to test drive a bunch of vehicles and then find out you either don't qualify for financing or cannot afford it. Finding out how much you are approved for first will allow the dealer to present you with a selection of vehicles you can qualify for. You can then focus your search and ensure that you are getting into a car you can afford.

Work with the right dealer.

When you have tarnished credit, working with the dealer that is best equipped to handle your unique financial situation is the key to success.

Connecting You

Drivers Lane connects bad credit car buyers with car dealers who will do everything possible to get them approved. Let us use our nationwide network of bad credit car dealers to find the one nearest your local area that is best qualified to work with you. Complete our fast, secure and obligation-free online application today.