Owning a car is plain ecstasy. None provides the perfect cloud nine feeling but a car. Coloradans are no stranger to car passion. From the Eastern to the Western slopes, people in Colorado love cars. But, what's that one reason which stops the residents of the Centennial State from fulfilling their car dream? Most people will agree that their bad credit score keeps them from availing auto loans.
Credit scores have always remained a mystery for its calculations are never crystal clear. Add to it, the dreadful year of 2008. We all have had trouble with credit history but recession caught us off-guard. Since then, the number of bad credit borrowers has been increasing. Coloradans! If you are suffering from a bad credit score and think that you can never get a car, you cannot be more wrong.
If you have a bad credit history, you can take advantage of auto loans for bad credit to buy your car. Yes, these loan programs are specially designed for borrowers who have a poor credit score. They are an opportunity to improve your credit score. Making regular payments will definitely increase your score.
Now, What Constitutes A Bad Credit Score?
Lenders have different criteria when it comes to ascertaining a score as a bad one. Few will consider a 620 score as bad and some lenders will think of anything below 500 as a poor score. So, before writing off yourself as a bad credit borrower, check your credit score. You can ask for your credit score from any of the three bureaus. Additionally, get your free yearly copy of credit report from annualcreditreport.com. Study it thoroughly because credit bureaus are infamous for mistakes. Also, we are all aware of the problem of identity theft. According to FTC's report, Colorado ranked among the Top 10 States in the context of identity theft complaints. So, check your credit report and dispute all those unaccounted transactions. Once you have cleared your credit report of errors, apply for second chance auto loans.
Lenders' Requirements
1. Lenders want you to earn at least $1,000 per month (Gross Monthly Income).
2. Your stable employment ensures regular payments. So, lenders require you to work for at least six months with your current employer.
3. You must be living in the same house for at least half a year. Your utility bills can be used as proof of residence.
4. Banks Statements can also be asked to get knowledge of your financial transactions.
5. Also, lenders will be interested in vehicle details like the purchase price, VIN, make and model. Odometer Disclosure Statement is important when buying a pre-owned car.
Insider Tips for Getting Approval
A car loan for bad credit is your second wind in the race of buying your dream car. To swing the decision in your favor, you must make a substantial down payment. If you can afford to put more than 10%, your approval chances will improve.
When you have bad credit, lenders consider you risky for doing business. You can reduce the risk factor by asking someone with a decent credit score to co-sign your loan agreement.
Down payment and a co-signer can really up your approval chances. Now that you know all about obtaining an auto loan with terrible credit, go ahead and apply for one.
With bad credit auto loans Colorado, you can buy your dream car and enjoy a comfortable travel in the State. The mesmerizing State has so much to offer in terms of diverse terrains. Go out and enjoy the beauty of Colorado.
Author Resource:
Although cars are need of the hour, a bad credit score plays havoc in getting one. But, things are going to change with our Colorado bad credit car loans program. Rapidcarloans.net offers auto loans for poor credit at affordable rates. Apply and get to buy your dream car.
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