If you are the type of person who bids to put off paying your bills for whatever reason, then your credit score is probably less than stellar. And, if your credit score is under 620, you will most likely be turned down by a bank if you were to ask for a car loan. However, high risk car loans are available available to people with bad credit so you still can drive the car of your dreams if you find a lender offering this type of financing.
High risk car loans are being used by millions of Americans today. The poor economy has rejected in many people losing their jobs, which makes it quite tough to pay off bills. More people than ever before in history are now considered to be 'high risk' borrowers and therefore the high risk car loans have become increasing available and very popular.
You can use the internet to find lenders offering high risk car loans. Be sure to take your time to do some research because some of these lenders offer better deals than others. You should also take the time to obtain your most recent credit reports so that you can review them for errors. If you do find mistakes on your credit reports, do what you have to in order to remedy them. Creditors are given a set amount of time to fix errors on credit reports once an error is pointed out, so it is always to your advantage to contact each credit that has filed a claim against you. Explain why you believe there is an error and then send your complaint via registered mail. The cleaner your credit report is the better when it comes to high risk car loans so give yourself plenty of time to fix inaccurate reports.
Shopping for a new car can be a rather daunting experience and especially if you have bad credit. High risk car loans can be your only chance at securing the money you need to buy your next car so it is a good idea to use at least one loan and down payment estimator. This type of free online tool will help you estimate the maximum dollar amount of your next auto loan and the minimum down payment you will need to make. You want to be very sure that you will be able to make the monthly payments, so by all means, take advantage of these free tools.
Guidelines for high risk car loans are much stricter than they are for regular auto loans. The lenders are going to look closely at how much money you make as well as at your outgoing expenses. You may be asked to provide a lender with your most recent W-2 form and any additional income needs to be verified with court documents and bank statements. While it may seem to be a hassle to obtain one of the many high risk car loans, sometimes these loans are your only chance at buying a new car, so you will simply have to do what is required.