4 Reasons You Can't Get a Bad Credit Car Loan

Getting a bad credit car loan is becoming easier and easier. Just look at the state of the American auto industry - high inventories plus the lack of AAA credit borrowers gives dealers plenty of incentive to be "Flexible" in their lending practice. Basic "bad credit" issues hardly stop most from getting the car they want.

However, as hungry as lenders and dealers are to make sales in a tough economic enviornment, there are reasons you'll be flat out refused a bad credit loan:

No Drivers License

It would seem obvious but this stops the borrowing process right in it's tracks. What lender would provide funds to you if you were not legally able to drive? It's best to have your license updated to the state your currently living in to avoid any surprises.

Must Be Employed

This means being able to prove you are working. You should be able to produce W2, 1099, paystubs etc..to verify your income. Bank records may be needed to proven adequate income if you are self employed.

Repossession on Your Record

If you have a recent repossesion on your record you will be disqualified for a new bad credit car loan. Repossession should be avoided at all costs by the way. It'a messy financial situation that is far from over once they physically remove your car from your possession. Most lenders will try to sell the vehicle ASAP many times under wholesale and come after you for the difference.

Under 18 Years Old

You cannot be held to the terms of a legally-binding contract until you are over the age of 18. An auto loan is most certainly a legally-binding contract. One exception...if you are deemed and "Emancipated Minor" you may be able to enter into a legally binding financial agreement.