Bad Credit Auto Loans Can be Yours With No Cosigner Needed

Buying a new car is one of the transactions we really enjoy. A new car is plush and comfortable, with an alluring scent and an engine that purrs under the hood. But getting the funds to buy a brand new car can be difficult at times, especially when we have a low credit rating. In such situations, bad credit auto loans are the only options open to us.Of course, a bad credit score is not necessarily from a history of irresponsible spending, but could also be down simply to some bad luck. For this reason, it is possible to get auto loans approved with bad credit.Of course, having a cosigner helps greatly in securing an auto loan, but what if an applicant is unable to find a suitable candidate for the role? Must they do without? The short answer is no. It is possible to get auto loan approval without a cosigner, even if the bad credit rating is severely low.How Bad Credit Influences LoansThere is myth that bad credit ratings put an end to the chances of securing any loan. But the truth is that low scores are only a minor  influence. This is what makes bad credit auto loans possible, and why applicants with less than perfect ratings can get the car that they want.The ratings system is based on the credit history of an applicant and ranges from a bottom score of 300 to a maximum score of 800. Credit agencies compile the information gathered from your current and previous lenders, then after some complicated calculations, come up with your score. The average is 680, excellent is anything above 700 while anything below around 650 is considered bad credit.Getting auto loans approved with bad credit ratings usually means having to pay higher rates of interest, compared to loans with an excellent credit score. However, the application itself is turned down for other reasons, such as a low monthly income and bad debt-to-income ratio. Getting auto loan approval without a cosigner can be achieved if these aspects are favorable.Increasing Approval ChancesKnowing that bad credit is not the grounds on which bad credit auto loans might be rejected means it is very possible to ensure approval is granted.For example, is your existing debt-to-income ratio is rather high, then reducing that can make all the difference. The ratio relates to the amount of income already committed to debt repayment, with a 40:60 ratio the maximum standard. Getting a small personal loan and clearing some debts will mean the ratio is change in your favor and increase the chances of getting an auto loan approved with bad credit.By repaying the short-term loan, the credit rating is also improved, thereby ensuring that a lower interest rate will be charged on the loan too. It might take three or four months to improve matters in this way, but the key factor is that it becomes possible to get auto loan approval without a cosigner.Other Criteria to MeetImproving your credit score can help but the success of a bad credit auto loan application comes down to other criteria. These relate to age and citizenship, with loans not permitted to be given to anyone under 18 years of age or to people without US citizenship. But the third condition is crucial to get an auto loan approved with bad credit - namely, proof of income.Having proof of employment is useful, but confirmation of a steady income that is large enough to handle the repayment is essential. Once this is provided, auto loan approval without a cosigner is practically assured. So, getting a bad credit auto loan is not so hard after all.