Looking for answers on what an auto lender is going to ask you to bring to the dealership? Lenders can vary widely, but we’ve got a few basics that many lenders are likely to ask for, and what additional things you might need if you’re a bad credit borrower.
Prepare your documents for an auto lender
When you apply for an auto loan, the lender will ask you for certain things to get a better idea of you as a borrower. They usually look at your monthly income, work history, life stability, and credit history.
You will likely need to take these items to an auto lender:
- Computer-generated pay stubs from the last 30 days, if you work for an employer
- Two to three years of tax returns, if you are self-employed or 1099 worker
- Proof of identity, usually proven with a valid driver’s license
- Proof of residency, usually satisfied with a recent utility bill in your name
When it comes to your credit history, you don’t need to bring a copy of your credit reports to the lender. They ask for them and this action is flagged as a serious investigation on your credit reports. Once your lender has your credit reports and score, they take them into consideration along with your other supporting documents to see if you qualify for a car loan.
Lenders vary based on the credit score you need, the monthly income you need, and may even vary based on work history requirements. However, if you have a good credit score, sufficient disposable income each month, and possibly a down payment, you’re generally on your way to financing a vehicle.
What if my credit score doesn’t make the cut?
One of the most common reasons for car loan denial is bad credit.
Typically, once your credit score drops below 660, you are considered a bad credit borrower and may find it difficult to meet the credit score requirements of traditional auto lenders. If this is the case for you, then a subprime car loan could be the next step.
Subprime lenders often work with borrowers who have gone bankrupt, have limited credit history, and various other credit issues. To apply for a subprime car loan, you will need items similar to the ones we have listed above for a good credit loan. However, risk lenders go further because they want to get a better idea of your situation.
Items Needed For A Subprime Auto Loan
These lenders are looking to make sure that you have the ability, stability, and willingness to take out a car loan. To meet their qualifications, subprime lenders typically ask:
- Computer generated pay stubs for the past 30 days if you are a W-2 employee
- Two to three years of tax returns if you are an employee 1099
- Consistent work history over the past three years
- A deposit of at least $ 1,000 or 10% of the vehicle’s selling price
- A recent utility bill in your name
- A recent cell phone or landline bill to prove that you have a working phone
- A valid driver’s license with your correct address
- A list of five to eight personal references with their full contact details
If you can meet the requirements of a subprime lender, you are told the maximum monthly car payment you are entitled to based on your individual situation and you work with the dealership to choose a vehicle that is right for you.
Where can I find subprime auto lenders?
Subprime lenders are registered with special finance dealers. They are indirect lenders, so when you apply for a subprime car loan, you speak with the dealership’s special finance director who acts on behalf of the lender.
Finding a special finance broker can be difficult because they may not advertise who their lending partners are. Instead of looking for one yourself, why not start here with us at Auto Express Credit?
We’ve created a coast-to-coast network of specialized financing dealerships, and we can search for one in your area after you complete our auto loan application form. It’s fast, free and without obligation, so get started on your way to a car loan now!