Financial Schools Reviews

Credit challenged consumers need to know that one of the requirements of a bad credit car loan is a list of references. Here we explain what needs to be on that list and the best way to put it together.

The basics

At Auto Credit Express we’ve spent the last 20 years working with credit-consumers who, for various reasons, find themselves with credit problems. As part of our business, we have helped many of these same individuals raise their credit scores and reestablish their car credit by financing a vehicle with a bad credit car loan. Along the way, we try to educate the applicants who visit our web site on the bad credit car loan process as well as the different types of lenders that are involved with these types of transactions.

What we’ve learned along the way is that the key to a successful bad credit car loan is focusing on the basics. In order to rebuild your credit, you, as a bad credit car loan customer need to understand how the subprime loan process works, which includes an understanding of the requirements of a subprime auto loan

Loan stipulations

In addition to the usual documents required for a loan, such as a credit application, bad credit car loan lenders have an additional list of requirements, called stipulations (or “stips”) needed during the documentation process of a subprime car loan. One of those “stips” is a list of references.

References

A reference is, in simple terms, someone who knows you. This person can be a friend, a relative, or even a co-worker.

Normally, six references should be enough for most bad credit car loan lenders. Although most lenders only require four, some may require more, so it’s always a good idea to have a list of at least six.

Reference information

In addition to their name, you’ll also need address and phone number (home or work) for each person is all that you’ll need. If you bring this list with you when you go to the dealer on your first visit, it will save a lot of time for you and for the finance manager. Before you put them on the list, ask your references permission to use their name, along with their information, and let them know that there is the possibility that they might be contacted by the lender to verify that they know you.

The Bottom Line

To summarize, have a list of 6 references (complete with addresses and phone numbers) with you, along with the other stipulations, when you apply for a bad credit car loan. By doing this, it will make the application process move along more smoothly and quickly.

One other thing to remember is that for nearly 20 years, Auto Credit Express has been helping people with credit problems get approved for new and used bad credit car loans. Our dealer affiliates work with a broad spectrum of bad credit auto lenders to get you approved.

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