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Good day subscribers thank you so much for joining me today on the financial education channel i am jeremy here as always and today we are talking about how to get a car loan how to get a car loan as just a normal person how to get a car loan if you have bad credit how to get a car loan if you have no credit these are all questions many of you guys have out there
And today i’m going to go ahead and dive right into this how to get a car loan okay basics you need you’re going to need to show proof of income so you need to show at least your last two pay stubs from your workplace if you’re an entrepreneur and you own your own business you’re going to need to show your last two years of tax filings but most people will fall
Into the group of being employed by somebody else so just your last two pay stubs are usually sufficient you’re gonna need to show bank statements you’re going to need to show proof of address at least a few different forms and a few other little minor forms but that’s the major stuff you’re gonna show now what are they looking for why are you showing this stuff
One they want to know that you’ve been at a residence consistently recently so if you’ve moved let’s say five times in the last two years that’s not going to look great on your credit as far as them judging you if you can get a car loan they’re looking for consistency lower looking for you to abstain places years or at least several months maybe you moved recently
But hopefully that last address you were living at we were there for at least a couple of years they’re looking for someone that’s not just switching states switching jobs because that’s more of a risk to them then someone who stays in one place and works a consistent job and has the same amount of income coming in every month and whatnot then someone that’s just
Here and there and then they’re gone that’s more of a risk to them as far as pay stubs go they’re looking for one with the workplace they’re looking for work history as far as how long you’ve been with that company the longer the better generally if you switch workplaces a lot that’s gonna scare them because they’re gonna think okay maybe they’re getting fired a
Lot which isn’t good because what if they get fired then they can’t find a job well then the car loans gonna come back to us and bounce back on the bank so they’re looking for job history and hopefully if you’ve just changed jobs recently and you’re trying to get a car loan hopefully that previous job you were there a while or that previous previous job you were
There a while that’s a big thing that’s a really big thing that they’re gonna look for they’re also looking for how much you making now they don’t care so much about if you have some huge income what they care about is they’re gonna ask you your expenses and they’re gonna ask you x your expenses versus what you’re making so if you’re making $700 a month let’s say
That’s your income so it’s not very much you just working a part-time job or whatever but you live at home and your only expense will be that car bill and that car bills gonna be 300 bucks a month that means they have another 400 bucks on the side and you can spend on other things so that’s a pretty safe car loan in their minds now let’s say you make $10,000 a
Month you’re really making good money but you have living expenses of $10,000 that means there’s nothing left over so that means you’re actually a risk so sometimes you can have a much lower income but if your bills are much lower and there’s more leeway in between them that shows better than someone that has a huge income and has a huge amount of bills and it
Only makes sense right you know all that matters is the gap in between what this card bill is gonna be this new car bill and what your general expenses are that’s all that matters in the long run so they’re going to be looking for that they’re gonna be let’s see we talked about residents we talked about pay stubs they’re gonna be looking at an egg statement that’s
Another big one they’re gonna look at looking for see do you have some money in your accounts so you know if before you go for your car loan try to make sure you have some money in that account you know a thousand mm maybe $3,000 because that’s gonna look much better if you walk in there and your bank statement shows 53 dollars if you walk in there your bank account
Shows you know 142 dollars they’re gonna be like holy cow this person has like no money in their bank account you want to show as much money as possible when you’re going with that car loan because that’s gonna make you have a lot better chance of getting that loan and also hopefully a much lower interest rate then they’re gonna check your credit all those kinds of
Things but i would say the biggest thing they’re gonna check is proof of residence for awhile your pay stubs and what i just talked about bank statements do you have some money in their accounts so even if you have a brokerage account with stocks in it try to show that try to show as much as possible especially if you’re one of those people that might have trouble
Getting a loan because the more money you can show that you have in the bank the more likely they’re gonna give you a loan now let’s talk about no credit let’s talk about bad credit the both are intertwined they’re both are almost seen as the same when getting a car loan bad credit and no credit the easiest way to get a loan with no credit or bad credit is have
Someone co-sign a spouse a close family member someone like that that has good credit that’s the number one key if you have someone that’s super close a parent a living boyfriend living girlfriend a wife or a husband a family member like an uncle or aunt you’re super close with and they have great credit try to get them to co-sign if you feel comfortable asking
Them and if you think they’ll feel comfortable loaning you know being on that loan with you because they’re also responsible once they sign their name as a cosigner they’re responsible just as much as you so if you can get them that’s great now for everybody that’s not an option cuz some people could they come from some families you don’t have anybody that has
Good credit or you don’t have anybody that you feel comfortable with asking you know for credit and earth to co-sign and whatnot so let’s say you’re in that scenario in one option is go with a credit union what you’re gonna do you’ll open an account with the credit union and they’re more likely to give you a car loan than a bank is because if you have an account
With them and you have a certain amount in that account like say a couple hundred dollars or whatnot in that credit union account they’re much more likely to give you a loan than say a bank is because credit unions are just run differently they’re more mom-and-pop they’re more they’re looser as far as giving you a loan than a bank i found that every single time a
Bank you’re just another number to a bank these banks are huge corporations we deal with chase bank of america wells fargo these type of places they’re billion billion dollar companies that are run in new york city or charlotte north carolina or wherever and you’re just another number to them so you’re just a piece of paper to them basically and i’m not trying to
Put them on blast or anything that’s just the truth you’re just a piece of paper and do you meet this requirement this requirement and if you do then it’s a yes and if you don’t meet this one that’s a note with a credit union sometimes it could be if you didn’t meet the school requirement they might look past it and they might still give you that loan so a credit
Union is the holy grail if you don’t have someone with good credit who can cosign the credit union is the next best rap after that i’ll be honest with you guys there’s not a lot of good options unless unless you are making so much more money than your living expenses are if you are making a drastic amount of money more then what your current living expenses are and
You have bank statements that show you’ve got a lot of money in the bank then they might bypass you know always got a 500 credit score or she’s got a 400 credit score or whatever they might overlook that because they could see this income coming in they see it’s super low expenses they see all this money in the bank like okay you know we might look past this one
They’ll probably still give you a high interest rate you know the bank’s whoever’s loaning to you there they’ll probably still make you pay a high interest rate because their credit score is low or you because you have no credit but you’ll still get the loan because you know they see that income they see the bank statement or whatnot so those are the three options
You have if you have no credit if you have bad credit family member that is close to you it has great credit that’s option number one that’s the best number to have an account with a credit union or number three be making so much money and have so much money in the bank that they’ll overlook the credit score or the lack of the credit score those are three options
So i hope this video to day guys really explained how to get a credit loan how to get a or excuse me not credit loan necessarily a credit car loan how to get a car loan how to get a car loan if you have no credit and how to get a car loan if you have bad credit they’re very intertwined anyways thank you so much for joining me guys as always if you haven’t subscribed
You may want to we talked a ton about personal finance like we did today talked a little bit about the stock market making investments and we talked about entrepreneurship and running your own business and being your own boss anyways i thank you so much for watching guys as always financial education channel and have a great day
Transcribed from video
How to get a CAR LOAN? | How to get a car loan with BAD CREDIT? | How to get a car loan NO Credit By Financial Education
