There is Hope in Bad Credit

There is Hope in Bad Credit

People with low credit rating feel disheartened when it comes to applying for a car loan. The truth is that credit rating is just one of the few factors lenders and auto finance dealerships like Blue Sky Auto Finance look into when assessing a loan application. Car loans get an approval despite bad credit if there’s a balanced consideration of all these factors:

bad credit

Credit History

Lenders look into the applicant’s credit history of getting a loan. The fact that car loans for bad credit are available means credit history is not the most influential factor. What lenders are more concerned about is how the credit score became way too low.

Employment History

Lenders check if an applicant has a dependable source of income. They need to confirm if applicants are capable to meet repayments despite having poor credit. A 6-month employment history with the current employer is usually the minimum requirement. Pay slips or bank statements that indicate income amount will also serve as evidence of paying ability.

An able cosigner

A cosigner can make the process easier, as he offers to cover loan repayments if the borrower gets into any financial difficulty. Lenders consider this factor because with a financially stable cosigner, loan risks are reduced dramatically.