Bad Credit Auto Financing with Fixed Income

The ability to qualify for auto financing with bad credit and a fixed income is a feat that many people find themselves attempting to overcome. It is not impossible by any means, but getting approved for a fixed income vehicle loan means a great deal of budgeting and meeting the necessary requirements. Therefore, its important that you are familiar with your credit status, your monthly debt-to-income ratio, and the type of automobile you are considering to purchase.

Credit Report Status

If you know that your credit report is not in the best condition you may want to consider possible credit repair tactics you can use. Things such as paying off small debts or even reporting errors on your report can improve your credit enough to where low income car loans are not too hard to acquire.

Monthly DTI Ratio

There are not too many car loan companies like AutoNet Financial with bad credit auto financing programs that will turn away a person with a fixed income, unless that person's debt-to-income ratio does not meet their requirements. This means that a consumers gross monthly income is not sufficient enough to settle their total monthly debt. Most lenders ask that their applicants make at least $1500 a month to meet the stipulations for poor credit financing.

Choosing the Right Car

It is very seldom that a lender will get involved with a consumers choice of vehicle, but if you have a fixed income it should almost be expected. A bank or dealership will look to make sure that any new or used car that you finance is fully capable of lasting throughout your loan term. In some cases a lending company may even dictate how old the vehicle can be, as well as the amount of mileage on it.

Satisfying these three checkpoints along with good budgeting should be enough to meet the needs of a fixed income car loan with any lender. However, there are times when a cosigner can be used or even required with could possibly make it more likely to qualify for no down payment auto financing with the right type of vehicle dealership. Otherwise, yo should be in the perfect position to be approved for a loan with a low or fixed income at a nearby finance company.