Low Income Auto Loans
9 Ways to Obtain Low Income Auto Loans
Low income earners have real challenges in obtaining
low income auto loans even more than people with adequate income but
have bad credit. However, it’s not impossible to obtain this type of
loan, but there are things you need to do in order to have the loan
One of the easiest groups of people to be approved
for such a loan is college students. They have a good reason for
having a low income since they’re working very hard on having a more
lucrative future. College students are seen as future customers and
lenders do everything they can to help students obtain reasonable
car loan requests.
There are 9 things consumers can do to get a low
income auto loan approved:
- Bring all bills current before applying. Pay off some of your
bills if possible. The lower your debt the more likely a lender
will approve a low income car loan.
- Try to increase your income with a better-paying job or an
additional job. It’s important that lenders see that you’re
willing to work hard to buy a car and pay off the debt.
- Buy a car on the lower end of the price scale. This advice
doesn’t suggest that you buy a car that will need constant
repairs, but a car that runs well that may not attract the girls
is the car you need as long as you have a low income.
- Save a decent amount of money for a down payment. Not only
will a down payment help you qualify for a loan, but it will make
you look more dependable and responsible to lenders.
- Maybe someone you know with a good credit report can cosign
for a car loan. A close relative or friend may be willing to help
you get the car you need if they can trust you to pay the loan.
- You may be able to finance your car through a credit union
since they will be taking your payments directly from your check.
If you’ve been employed at the same place for several years,
there’s a minimum of risk.
- You may own something of value to use as collateral to secure
the loan. Many people use this method to retain ownership of the
collateral rather than sell the item and lose it forever. Another
close relative or friend may be willing to let you use one of
their valuables as collateral. Again, this person must consider
- Find 5 lenders who specialize in low income auto loans and
apply to all 5 at the same time. Each credit inquiry made of your
credit report made by auto loan companies doesn’t have a negative
impact on your credit report so apply to at least five lenders.
- Look for the best lender you can find. A good lender will not
only approve your loan, but will help you improve your credit
score by reporting your consistent payments to one or more credit
You may need to apply all 9 of these methods to find
the low income auto loan you seek. They will be worth the effort if
you get the car loan you need.