Funding an Auto Loan

What Bad Credit
Auto Lenders Need to Fund


Funding your auto loan is oftentimes over looked and car buyers tend to think that the approval is all there is to it. Unfortunately, if the loan doesn't fund, then there is no loan.

The funding process can be more difficult than the approval process if you don't know ahead of time what bad credit auto lenders need to fund auto loans. Don't worry, because that is exactly what we'll cover here.

Once you get approved for your bad credit auto loan, your lender is going to require that you show proof of the information you supplied on your loan application, before they'll fund auto loans.


Funding Bad
Credit Auto Loans

Most lenders are going to require that any of the requested items be no older than 45 days old, but to be safe only provide information that is less than 30 days old. A pay stub from 4 months ago doesn't prove how much you are making now.

The most common requirements bad credit auto lenders will have in order to fund auto loans:

    Proof of Income (POI).
    Any one of these will usually do...
    • Pay stubs.
    • 3 months bank statements.
    • 2 years tax returns (if self employed).
    • letter from employer (not always accepted).

    A Minimum Down Payment.
    Not all bad credit lenders will require a down payment and if they do, then oftentimes trade in equity will be good to substitute for cash.

    Proof of Residence (POR).
    Any one of these will usually do...

    • Utility bill.
    • Drivers license with physical address on it.
    • Insurance declaration page showing physical.
    • Junk mail in your name sent to physical address.
    • Google map (usually only applies to rural areas and reservations).
    • Rental/lease agreement.

    5-10 Complete References

    • No PO Boxes for addresses.
    • No shared addresses, i.e. husband and wife (living together) count as only one reference.
    • Will usually be contacted prior to funding, so be sure to provide accurate contact information.

    Employer Contact Information
    The lender will verify employment, start date, income, current status (full time, part time, seasonal, temp employee, etc.).

    Landlord name and phone number.
    Lenders don't always call your landlord, but it is becoming more common. This helps them to double check where you live and if you are in good standing...In other words, how likely you are to be there next month.

    Proof of Full Coverage Insurance
    You will have to have full coverage insurance listing your new lender as the "loss payee" prior to funding.

    Don't overlook insurance costs. I've seen too many customers wait until after the deal is done to get insurance quotes only to find that the insurance costs are way more than they can comfortably handle each month. Save on Auto Insurance.Get a fast, free quote online at Esurance. See your savings instantly!www.esurance.com

    Proof of Checking and/or Savings Account
    Having a checking or savings account is not necessary for funding auto loans, but oftentimes will give you a better approval.

    Complete Phone Bill
    This doesn't always have to be a phone in your name. I know that half the customers I work with will have a cell phone in a family members or friends name and the lender doesn't usually care, but they want to know who you talk to.

    If you skip town with their car, they're going to want to find you and what better way then to call everyone you talk to on a regular basis.



Now you know what it takes for funding auto loans quickly and without a hassle. For your sake, please take my advice and go prepared, it will save you major headaches down the road.

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