Because of subprime auto lenders, you don't need perfect credit to get a car loan. Still, you have to meet certain requirements to become eligible for an auto loan.
Importance of Steady Employment
Regular monthly income is necessary to qualify for an auto loan. Auto lenders vary, and you may need to provide several copies of paycheck stubs to qualify. If you have good credit, a lender may approve your auto loan application without verifying employment or income. Because paycheck stubs include your address, lenders can use this information (along with a driver's license) to verify your residence.
Benefits of a Co-signer
Applicants with good credit do not normally require a co-signer for an auto loan. However, if you have no credit or a bad credit history, using a co-signer with a good credit rating can help you get approved for a loan.
Consider a Down Payment
Auto lenders do not require a down payment. But when trying to keep your monthly payment affordable, a down payment between 10 and 20 percent of the sale price can reduce the amount you finance with the auto lender.
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