When car is your dream, nothing should prevent it from becoming a reality. Not even bad credit history. Georgians! It’s time to defeat bad credit problems and achieve a Georgia auto loan with bad credit. Low rates can be obtained for people with poor credit score. Know how.
Bad Credit Auto Loans at Low Rates in Georgia – Is it really Possible?
There is not trouble in getting low rate auto loans program with bad credit. The reason is simple. Today, subprime lenders and bad credit auto dealers in Georgia understand that bad credit is just your history and it cannot define your present. Any improvement in financial condition takes more time to have an impact on your credit score. That’s why; lenders, dealers and auto financing companies don’t consider ONLY bad credit history.
What constitutes the Georgia Car Loan Approval Criteria?
1. Credit Report
2. Financial History
5. Debt-to-Income Ratio
6. Receipts of Current Utility Bills
8. Down payment
9. Vehicle Information
So, don’t worry if you have a terrible credit history. You can still enjoy guaranteed low rates as many factors are considered before approving your GA car loan application.
How to get an Auto Loan at Lowest Rates with Bad Credit Score?
To buy a car with bad credit in the Peach State, you need to work on other aspects of the Georgia auto loan approval criteria.
Valid Proofs of Income, Employment and Bill Receipts
Get ready with documents that support your income and employment. You can produce your current pay stubs or ask your employer for an Employment Verification Letter.
Also, don’t forget to provide receipts of your utility bills. It will help in establishing the fact that you are regular in making payments. This will enable the lender to see you in a positive light.
Getting a Co-Signer
When you have bad credit score, lenders consider you risky. But, if you can find a co-signer, the risk factor is highly reduced because the co-signer assumes the responsibility of making payments in case of any irregularity.
Down Payment for Lower Payments
If you can manage a down payment of 10%-20% of the car price, then you can lower the total auto loan amount. This means you can reduce the monthly payments as well as lower the interest rates.
Lower your Debt-to-Income Ratio
When second chance auto dealers and bad credit auto financing companies see a high debt-to-income ratio along with bad credit, they will consider you a credit risk. It is because you have high debt and a history of missing out on payments. So, before opting for bad credit auto financing program in Georgia, make sure that you pay off other debts. It is advantageous if your total debt is just 45% of your total income (including the new car payment).
Ready with Car Information
When you have all the car information, dealers/lenders will know that you are very serious about buying a car. This will have a favorable impact on your Georgia bad credit car loans application. So, keep the information related to car make and model, VIN, title, etc. ready. If you are buying a used car, then remember to keep the Odometer Disclosure Statement as well as Vehicle History Report with you.
It is okay if you cannot get a down payment or a co-signer. It may not be possible for everyone to fulfill each and every suggestion on the list. But, remember that the more you stick with the list; the lower will be your interest rates on Georgia bad credit auto financing.