subject: Financing a car with bad credit in Montana [print this page] Financing a car with bad credit in Montana
When it comes to getting an auto loan with financing car bad credit, most lenders have a score card that they use to rate your creditworthiness and risk. Sometimes called a credit score or FICO score, this is not the only tool these lender use.
Rarely will sub prime lenders rely on the credit bureau score alone when making their decision whether to approve or decline financing car bad credit loans. While the FICO score is the place that they start, these lenders always look beyond your credit score to try and find an underlying pattern of stability that will enable them to approve your application. Based on experience, here are a few examples of items that may be part of a subprime car lender's score card:
The first item is your time in the credit bureau. Many bad credit car lenders use the "In Bureau Date" as part of their score card. The longer a person has been in the bureau system and using credit, the better. This longevity means that you have a bigger credit file with which they can judge your payment history.
A second item would be your previous high credit. Finance companies may look at your previous credit high to determine the financing car bad credit loan amount that they will approve. If you've paid well on a large loan in the past, this generally increases your chance of getting approved for a car loan.
A third item would be any differences in paying installment credit versus revolving credit. When it comes to auto loans, many bad credit lenders either disregard or pay less attention to revolving credit (credit cards) and play closer attention to how you've paid on previous installment loans. The reasoning behind this is that a car loan is a type of installment loan.
Item number four is the time you've been employed with your current employer. The longer you've has been with their current employer, the better. If you've been employed by the same company for a number of years, it shows the lender that you have employment stability an important factor in most credit decisions.
When it comes to financing car bad credit loans, your credit score is just the starting point. In addition to your FICO score, these lenders are looking for a reason to approve your loan, based on your job and residence stability, as well as your past payment history.
For more information on auto loans in Montana, click here.
