How can I get approved for a bad credit car loan if I am a student?

[creditguy2]

This article looks at some commonly asked questions when it comes bad
credit car loans, with focus on credit approval for students.

You are in university or college, but lives far from campus. All your
friends are driving a car to school, but you are still stuck on the
bus. You have a part time job that produces some income although it is
more than enough to make a car payment. Your local bank or dealership
is turning you down... Why? Well the answer is simple, but I bet even
some of your professors wouldn't know it. It is because of two main
reasons. For one, the banks and lenders are looking at your DTS or
debt to service ratio, it is the main ration they use to calculate how
much you can really afford. By the text book definition, one should
have the DTS ratio at 30%, in another word if you make one thousand
dollars per month after taxes, you should be able to afford a $300 per
month payment. Now the banks are also concerned because a student
insurance rate is not the same as a grown up. Therefore hesitant to
offer you a loan, because frankly they see this loan as been too
risky, or in another word good chance of defaulting. How do I improve
my chances of getting a car loan then? Well make sure your parents are
there to give you a helping hand. Such as going under your mother or
father's name as a second driver will reduce your insurance rate
accordingly. Make sure you told your lender that is the case, and also
since you are in school most likely you are not paying any rent. It is
in your best interest to make sure you credit application is filled
out correctly. If not this can turn out to be a very costly mistake on
your part.

Produce a job letter, and pay stubs to make your case stronger. With
stable employment for the past few years, your employer should have no
problem producing such document for you, the next thing you need to so
is to photocopy and keep track of your pay stubs to proof your income
to the lender. If all the mentioned above have failed that is because
you are applying for your car loan through the normal channels. Try to
apply to a bad credit loan provider that specializes in used car
financing. Because chances are they will be a lot easier on you, and
more understanding of your situation. But the only draw back is higher
interest, but don't be turned away because of that. After all, at the
end of the day it is your choice to take the bus or drive a car.

This article is brought to you by Selected Fine Cars, we specialize in
high end pre-owned vehicle financing for both good and bad credit.
Visit us online at http://www.nocreditnoproblem.ca or
http://www.nocreditcheckcarloans.ca