Basic Rules and Requirements Associated with Bad Credit Car Financing
Even though lenders offering bad credit Car financing are quite lenient when it comes to the loan approval process, they have minimum requirements, which you must meet. Again, there are specific rules as well, which you need to abide by as well, once the application is approved and you receive the money in your account.
Minimum Requirements for Getting Bad Credit Car Financing
- One of the requirements, which many lenders have, is the need for the applicant to be a citizen of the place, where he is making the application from. It gives them assurance that there are lesser chances of you running away without making the repayment. If you are dealing with lenders having such criteria, you will need to provide them with the necessary citizenship proofs for getting the loan application processed.
- Another requirement, which you must fulfill, is with regards to your job. In case you are working for a new employer, some lenders require you to be there for at least a month, before you make the application. If you have been working for a firm for a long time, you might be asked to show proofs of the same. This is checked to assure that you have stability in your work life and you will be able to make the repayment of the debt without any problem.
- Your current paycheck amount is another thing, which is taken into consideration, when your bad credit Car financing is being processed. There is a specific amount, which you need to earn at the place of employment, if you wish to be eligible for the loan. If you require borrowing a larger amount, you would need to have a higher salary for your application to get approved. Having a full time job is met with a better recognition than if you are at a part-time employer.
Rules for Usage of Funds
If you meet the minimum requirements of the lender and get your loan approved, there are certain things to be kept in mind as well.
- In case you have opted for bad credit Car financing, you are not allowed to buy anything with that money other than a car. You cannot invest in properties, personal usage or even motorcycles. Many lenders do not give you the loan amount in the form of money in your checking account or cash. They make the payment to the car seller, from where you are making the purchase directly.
- There is even restriction on how you repay your money back in cash of such bad credit loans. Lenders require you to hold on to your loan for a specific time period, before you can pay it off or get it refinanced. You might not even be allowed to resell your car during that timeline.
It is important that you check the offer document carefully before signing the offer document. Again, signing a contract with the right lender is necessary, if you wish to get the best bad credit Car financing deal available.