Subprime Auto Financing – 3 Tips For Getting Approved Today

Published in Bad Credit

Getting approved for subprime auto financing is becoming more and more difficult as the economic down turn drags on. Lenders are just too afraid to finance people who they feel will not be able to repay them. But thanks to this article, you won’t have to worry about getting approved. I’ll show you how you can maximize your chances of success, by utilizing three simple tips.

Tip #1 – Increase Your Down Payment

Lenders will not lend money generally to anyone who they feel doesn’t have the ability to repay them. This is particularly true of people who find themselves seeking subprime auto financing. This means that the more you can reduce the lenders ‘risk exposure’, the greater your chances of being approved. The majority of lenders will require that you come up with a down payment to begin with, so to bolster your chances of approval, simply increase the amount of the down payment. If the requirement is say $2000, try increasing that to $3000.

Tip #2 – Provide Solid Proof Of Income

A basic check will be made regarding your present and past employment history when you seek a loan as subprime borrower. But you can boost your chances by submitting a detailed record of your employment. If you are presently employed, submitting your last 6 months paystubs, can give the lender great insight into your cash flow situation and consequently your ability to repay.

It is also a good idea to give some insight into your banking situation. If your bank balance is healthy, submit a few statements. This will show the lender that there is some funding available that will help you to sustain a loan.

Tip #3 – Use Online Lenders

One of the main benefit of using an online lender is that you’ll be more likely to come across those that specialize in lending to subprime borrowers – and this is what you want. You’ll also save money on the interest rates that you get since online lenders are able to offer more competitive lending rates as opposed to their offline counterparts.

Online lenders also have a speedier approval process and even though you have low credit standing, it’s not uncommon for them to return an answer to your application in just a few minutes.

As mentioned in the introduction, subprime auto financing is going to get harder, but provided you apply the three tips outlined above, your results will be better than most people.

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