Many dealerships around the country realize that a growing number of Americans are suffering from bad credit or no credit at all. Having perfect credit makes it much easier to obtain most traditional car loans, but a perfect credit score isn’t in the cards for someone who has recently gotten out of bankruptcy or have a default judgment rendered against them.

An increasing number of dealerships are working with customers who have poor credit to obtain “second chance” credit loans. With a second chance loan, customers who thought they wouldn’t be able to buy a vehicle receive financing with terms that can easily afford. These loans are also an excellent way for those who have come out of bankruptcy to reestablish their credit. In most cases, it usually takes less than a minute to gain approval for one of these bad credit auto loans.

There are a few prerequisites to obtaining a second chance loan, but many of these prerequisites actually work in the favor of the person requesting the loan:

  • You should first review your credit history to make sure there is no erroneous information listed. The major credit bureaus allow you to receive a free report of your credit history on an annual basis.
  • You should calculate how much you can comfortably afford in terms of monthly payments. It also helps if you have a large down payment on hand. The larger the down payment, the lower the monthly payments will be.
  • Have proof of employment and income on hand when you apply for one of these loans. This documentation usually takes the form of pay stubs or your most recent income tax return. In some cases, you might not even need this documentation.