Finance
11 ways to get auto loan approval with a low credit score
Financial advisors always emphasize good credit scores because it is the only way to secure a loan, including an auto loan. But sometimes, people with already poor credit scores may need to take out auto loans urgently and might find it difficult to improve their scores immediately. But the good news is that with certain strategies in place, it is possible to have one’s auto loan approved even with a low credit score. Here are a few ways to get auto loan approval with a low credit score: 1. Get a person to co-sign the loan When a person co-signs an auto loan, they promise to repay it if the borrower cannot. If the co-signer has a good credit score, there are good chances of lenders approving the auto loan request. 2. Provide proof of being capable of repaying the auto loan If a person has had a recent salary hike or promotion, they may be in a better position to repay their loans than before. Similarly, any additional sources of income that have emerged recently can also help the borrower repay an auto loan more comfortably. So, in such situations, borrowers should inform lenders about any increase in their income levels or supplementary sources of income so that lenders become more confident about the borrower’s ability to repay the auto loan.