Qualifying for a car loan when you have bad credit is largely dependent upon the type of lender that you choose to use. Not all lenders have the same applicant requirements and they can vary widely from one lender to another.

Choosing a lender that is most suitable for your particular situation can make the difference between getting approved and not getting approved. It can also make a large difference in the amount of your monthly car payment and determine whether or not you need a down payment.

When buying a car with bad credit, it’s important to work with a secondary or sub-prime lender.

Lenders that specialize in bad credit auto financing are catered towards helping people that have low credit scores. As they are very familiar with your needs and limitations, they are the most suitable for helping you to get approved and obtaining better payment terms.

You’ll find that there are a few legitimate sources that can provide real car loans for people that have low credit scores.

To qualify, you usually have to meet these minimum requirements:

You must be 18 years of age to enter into any legal contract, so this is a simple requirement. If you’re under 18, you must have the vehicle purchased in a parent or guardians name.

Usually, most all lenders will require a minimum income to qualify. This can range from anywhere from $1500.00 per month to $2200.00 per month at maximum. Your income should be derived from employment preferably, although some will accept your application if you receive a government pension or another form of secure income.

If you have had a bankruptcy, it’s important that it be completely discharged or dismissed. You should have no further obligations to the court and no outstanding payments related to your bankruptcy. The one exception is if you have filed for chapter 13 and have received permission from the court to incur new debt. This is more common than you may think.

Finally, to qualify you should be prepared to repay the debt. Having a reasonable debt to income ratio that shows that you have the monthly expendable income to spend on an automobile loan will be of utmost importance to any prospective lender.

Recommended: http://www.BuyingCarswithBadCredit.com