How long does it take to approve a bad credit car loan?

Dec. 1, 2010 - PRLog -- If you have recently submitted your credit application for a car loan, and you haven’t heard back from the dealership, don’t panic! The credit application approval process is based on your credit score, many banks or lenders today are offering an automated system much like a secured web portal. Your business manager or the person you signed the financial contract with will submit your credit application via web. If your return credit score is high enough you will be automatically approved by the system itself. This automated system runs 24 hours a day, and the decision time can be as little as 20 minutes. But if your credit score is less than ideal this process can be considerably longer.

For one, if the system didn’t automatically approve your car loan, your file will be flagged for further review by a human on the next business day. For example if your credit application was submitted at 7 pm, it will most likely not be touched until noon on the next business day. When a loan officer at the bank looks at your credit application, he or she may need to do further research on your case depending on your debt ratio and type. If you have recently purchased a sofa from John’s Furniture store and you haven’t made the payment on time, your lender may attempt to contact John’s Furniture to verify the story.

Don’t panic if you don’t get an approval back instantly like the dealer promises. Think about your situation logically. Your selling dealer will be working hard on your case, because it will not make any money if your credit application is rejected from the bank. The dealership is on your side, just wait patiently if you have troubled credit past. Whatever you do, don’t apply to another dealership with your credit application again! When multiple applications are submitted for the same individual, you will be flagged as a “credit seeker”.  The system will red flag your file, and you are only digging the hole deeper for yourself. So the next time you don’t hear an answer back instantly, don’t worry just to be patient and everything should work out fine in the end.

Author Rick Tao Li, for other useful articles like this one please visit me online at http://www.usedcarsscarborough.com

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Used Cars Scarborough offers top quality used cars in the Scarborough area of Toronto, we specialize in quality used cars for under $10000. We also offer bad credit and no credit financing, visit us online at http://www.usedcarsscarborough.com