Bad Credit Car Loans – Essential Tasks to Help You Succeed

“The car has become a secular sanctuary for the individual, his shrine to the self, his mobile Walden Pond.” – Edward McDonagh

Cars are not just a mode of conveyance for us. We love cars and wish to own one that gives extreme joy and social status as well. If you are looking for a car, you must concentrate on obtaining car loans. It is because the sky-rocketing prices of cars have made it impossible to buy a car with cash.

When you apply for a car loan, your credit score is taken into consideration with several other factors. If you have bad credit score, like most other people who have suffered through the economic recession, you will have to remain extremely cautious. It is because a single mistake can result in unnecessary high interest rates. It may even damage your chances of improving your credit score. So, here is a list of essential tasks that you should assume in order to complete the car buying process successfully:

TASK 1 – PREPARING FOR BAD CREDIT CAR LOAN

A. Create A Budget

Calculate your budget so that you don’t buy a car that is not in your price range. If you ascertain your spending limit, it will help you in negotiating affordable loan payments with the lender. If you are confused about what income and expenses to consider, you can use online car loan calculators available in the market.

B. Save for Down Payment

Most lenders offer high rates on bad credit auto loans. If you obtain a huge loan amount, you will have to spend more money on interest. But, you can turn this losing situation into a victory by making down payment. Down payment will lower your loan amount and will help you in making lower payments as well.

But, don’t worry if you don’t have money for making down payment. You can trade-in your old car and avoid paying in cash. There is one more alternative to help you avoid down payment and it is called bad credit no money down auto loan program. You can avail this loan program at slightly higher interest rates.

C. Complete Paperwork

Bad credit lenders have become lenient and made approval easier. So, you won’t need additional documents for securing bad credit auto loans. You just have to provide:

1. Identification Proof (SSN)
2. Income Proof (Employee Verification Letter, Recent Pay-Stubs)
3. Financial Statements (Bank Details, Tax Information)
4. Receipts of Utility Bills

TASK 2 – APPLYING FOR BAD CREDIT CAR LOAN

Gone are the days when bad credit car buyers had no place to apply for an auto loan. Today, you can get bad credit car loans from:

1. Online Auto Financing Companies
2. Car Dealerships
3. Credit Unions
4. Traditional Banks and Other Lenders

Before you start submitting loan applications to everyone, make sure that you understand their loan approval criteria and apply with the lender/dealer that suits your
financial condition.

Usually, online companies have the least stringent requirements and higher approval ratio. It is because they work with a network of sub-prime lenders and dealers. So, they have the advantage of forwarding your application to other lenders if the first one rejects it.

So, search for a reputed online auto financing company and apply for the most suitable auto loan option that improves your credit ratings. Hope you become successful in finding the best bad credit auto loan program. All the best!

Tips for Avoiding Delinquency on a Bad Credit Auto Loan

Automakers were able to sell 16.5 million automobiles in July 2014 because of auto loans, particularly bad credit auto loans. But, there is a negative side to this phenomenon. The auto loan delinquency rate is also rising with the increase in bad credit car loan approvals.

According to Experian Automotive, the 60-day loan delinquency rate has increased to 0.62% of borrowers from last year’s rate of 0.58%. It means there is an increase of $859 million in the balance of delinquent loans since Q2 of 2013. Also, there is a minor increase in 30-day delinquency rate. It grew to 2.39% from 2.38% meaning $2.8 billion increase from the previous year.

One thing is clear from this data that even though lenders are offering easy approval on bad credit auto loans, it is becoming a bit difficult for sub-prime borrowers in handling the loan. It is because people are taking advantage of the relaxed lending norms without considering their financial situation. If you are thinking of obtaining a bad credit auto loan, you must consider these tips:

Your Need or Your Desire

Do you really need a car? Is it something that is necessary to sustain and improve your life or is it just a craving? It is very important to differentiate between your needs and desires. Don’t apply for a bad credit auto financing program if you don’t need it. There is no need to assume unnecessary financial burden because it can cause harm to your credit score.

Calculate your Savings

Before searching for a car, you must sit down and calculate your savings. If you know about your total savings, you can use it for any unexpected future expenses. This way any unanticipated problem or expense won’t create any trouble in making repayments in the future.

Detoxify your Home

It may seem like a weird advice, but it is very useful. By detoxifying your home, I mean getting rid of unwanted things. Sell them online. You can even organize a yard sale and raise money for down payment. Trading your old car is also a good way of removing junk and reducing the car loan amount.

Planning your Financials

When you take a bad credit car loan, you accept the responsibility of making regular payments. So, it is important to prepare for payments beforehand. If your loan term is going to be five years, plan for the entire term. Know your expenses and increase your income if you are planning for a wedding or a vacation during the loan term. It will help you in staying on top of your payments.

Many lenders will offer you quick bad credit auto financing, but you have to repay it for getting better rates in the future. You have to make sure that you don’t fall behind on payments because it will increase the chances of repossession and pose great risk to your credit score. So, follow these tips before submitting your car loan application.

Remember to look before you leap!

How to Ensure Car Buying Success With Bad Credit History As Your Partner

According to a new report by Experian, a huge number of US consumers are buying cars. The phenomenon is a result of easier loan access and less-stringent approval criteria. The report revealed that lenders and banks financed 85 percent of the total new car purchases and 53.8 percent of used cars in the second quarter. This is higher by 0.5 percent and 0.9 percent, respectively, from the last year.

Everyone is running to the dealership lot for buying a car but you should not do the same thing if you have bad credit score. For ensuring success at the time of buying a car, a bad credit car buyer has to consider several things like your budget, credit score, down payment, etc. But, there is one more important thing that requires your attention and it is the car you are buying.

New Car or Used Car – That is the Question

Whether your car loan will be affordable or not depends on the car that you buy. So, you have to be extra careful because it has the power to improve or ruin your credit score.

Most bad credit buyers receive higher interest rates in comparison to others. So, if you buy a new automobile, you will end up paying more in terms of interest. Also, it will be costly for you because insurance premium amount is higher for new car in comparison to old cars.

It is safe to buy a used car with bad credit history because its low-cost will ensure an affordable loan amount. If you are careful in choosing a used car, you will have the advantage of obtaining a reliable automobile with less maintenance cost.

Options for buying a Used Car

Once you decided to opt for older cars, you have two sources to choose from:

1. Dealership Lot

If you are worried about ending up with a lemon, you can obtain a CPO (Certified Pre-Owned) car. CPO cars are ideal for car buyers who want to buy a less-costly used car that has undergone safety and performance inspection. It usually carries extended warranty.

Although, you must keep in mind that certified cars are a bit expensive than other alternatives because dealers conduct a thorough inspection of the automobiles.

2. Private Party

You can buy a car from a friend, colleague, neighbor or online seller. All such sales are categorized as private party car sales. Such deals are ideal for those buyers who want to avoid the incessant pressure of the salesman. A private party car purchase also leaves more room for negotiation but you have to ensure the reliability of the car as there is no certification available.

Next comes the Bad Credit Auto Loan for buying a Used Car

After you have made a decision about buying a used car, it is time to apply for a bad credit car loan. Before you go to a bank or seek dealership financing, you must consider the online auto financing companies. These institutions work with a lender network and ensure that your credit application reaches several sub-prime lenders and thus, ensure higher approval chances.

Here are few tips for obtaining quick approval on your online loan request:

>> Apply only with a sub-prime lending company with a secure website
>> Make down payment or trade-in your old car for lowering the loan amount
>> Bring a co-signer as it will increase lender’s faith in your loan application

So, this is how you can become successful in buying a car with bad credit history. Remember this bad credit car loan guide before heading out to make the purchase.

Bad Credit No Money Down Car Loans – A Great Way to Buy A Car Without Making Down Payment

Car financing is an unpredictable process. Few lenders may reject you for being a sub-prime borrower while others may approve you without any hesitation. But, there is one thing that remains constant for a bad credit car buyer and it is down payment. Lenders asks people with bad credit score to put at least 10% of the total car loan amount as down payment.

Usually, people use their savings for making down payment but not everyone has the financial capacity to do so. It becomes quite a problem when you don’t have money or you don’t want to spend your savings on down payment. In such a situation, a bad credit no money down car loan program can become a blessing for you.

Am I eligible for Bad Credit No Money Down Car Loans?

Yes, you can apply for the no money down car loan program even with bad credit history. You can be a first-time car buyer, a businessman or even a part-time employee. To be eligible for the loan program, you need to fulfill the following criteria:

>>You must be at least 18 years old
>>You must have valid SSN
>>You must earn minimum gross monthly income of $1500
>>There should not be repossession in the recent past
>>You should not be currently bankrupt

How can I get Approval on No Money Down Car Loans with Credit Issues?

Previously, car buyers with credit issues used to feel depressed because of their contact loan rejection. But today, lenders understand that problems related to credit score are common. They don’t have any problem in providing bad credit auto financing programs. You can improve your approval chances by:

1. Keeping all your financial documents like bank statements, pay-stubs, receipts of utility bills, etc. ready. The lender will require it to check and ascertain your current financial condition. If he/she is convinced of your capability of making regular payments, you will get guaranteed approval.

2. Finding someone with a good credit score and lower debt-to-income (DTI) ratio to co-sign your loan contract. If you have a co-signer, the lender will be tension-free and won’t worry about getting back his/her money. It will give you an added advantage.

Now that you know how easy it is to improve your auto loan approval chances, don’t wait anymore. Apply now to get approved for bad credit no money down car loans program and buy a car of your choice.

Factors that make Student Auto Loan Approval as Easy as ABC

Many American universities are promoting car-free campuses by offering free bikes to students and charging hefty fees for parking permits. But, if your university has inadequate student housing facilities and limited public transportation service, you need a car to attend your classes.

When you decide to buy a car, you have to undertake the process of auto financing. It is because most of us don’t have enough spare cash to buy a car. Students are overwhelmed by the very thought of auto loans because they are buying a car for the first time and they don’t know much about it. But, if you understand the following factors that are considered by lenders, you will realize that getting approval on student auto loan is easy as ABC.

A for Approval Criteria

Even though lenders have different approval criteria, few things remain common like:
1. You must have a Valid Social Security Number
2. You must be minimum 18 Years of Age
3. You must possess a Certificate of Enrollment(Proof that you are a Student of University)
4. You should earn Regular Income (Part-Time Job is Acceptable)
5. You should have Employment Proof (Employment Verification Letter is Satisfactory)

B for Budget

You must prepare a budget before starting your car shopping. It will enable you to narrow down your list of favorite cars. Once you know your affordability, it will be easy to choose the best-in-your-range car model.

So, list down all your monthly expenses and income along with any allowance that you receive from your parents. Calculate the amount of money that you can spare for monthly payments. It will help you in selecting the ideal student car loan program.

C for Co-Signer

Anyone can be a co-signer as long as he/she has a good credit score and lower debt-to-income ratio. If your parents have lower debt and can manage the responsibility of your car loan, you can ask them to co-sign your student auto loan contract. Don’t worry if your parents stay in another state. Most lenders don’t have a problem with an out-of-state co-signer.

D for Down Payment

The down payment amount is helpful in reducing your loan amount and projecting a stable financial situation to the lender. But, most students don’t have enough cash to make down payment. So, you can ask your employer for an advance or convince your parents to lend you some money. You can even ask your parents to sell their old car to generate money. Trading the old car can also be an option for lowering the loan amount.

So, these are the factors that can help you in passing the test of student car loan with flying colors. Use them and get ready for easy auto loan approval.

Can You Get A Motorcycle Loan With Horrible Credit?

Getting a motorcycle can be an excellent investment. They use less gas, they allow you to enjoy the fresh air, and they don’t take up much space. It’s a favorite pastime in America and many people have decided to get one for their home.

While cars are great for transporting your family, for bad weather conditions or for needing to be able to talk to your passenger during the trip, motorcycles are a great way to save on gas, have an enjoyable ride and you’ll even be more focused since you won’t be tempted to text and drive.

For those that would like to invest in a motorcycle, but realize their credit is not in good shape, they may be wondering how they could get their motorcycle loan. Although motorcycles can be expensive, there are ways for those with horrible credit to get a motorcycle loan.

Where to Begin

If you are looking to get a motorcycle with horrible credit, you are not out of luck. The first thing you want to do is start saving up money because you’re going to need a big down payment. This way, you don’t have to pay cash for a bike, but you’re more likely to get a loan because you can put down a large chunk of it. This will also decrease the amount of money you’d pay over the life of the loan.

Try to get a Co-Signer

While this is not possible for everyone, you could try to get a co-signer. It doesn’t have to be a relative. It just needs to be someone who is willing to sign their name on the loan saying they will pay the loan if you don’t. As long as you pay your loan, your co-signer won’t need to do anything, but having a co-signer increases your chances of getting approved for a loan.

Try to Improve your Credit Score

Practicing better financial decisions and strategies can help to improve your credit score. Getting in good standing on any past due debts and lower credit card balances can also help. Over time, your credit will start to improve and you will be more likely to get approved for a loan.

If you don’t have Luck with the Bank

If you’ve tried to get a loan through a bank lender, there are other options. Look online for lenders that may give you a personal loan. Another way you could go is to try borrowing from someone you know on a loan basis. If a relative or friend lends you the money, you could have a type of contract typed up with this person on when you agree to make payments and if they’ve asked you to pay them any interest.

Micro-lending

Another way to get a loan is through a process of micro-lending, a practice in which small investors put money into your loan and get some of the interest instead of it all going to the lender. This is helpful for bad credit borrowers who are looking for someone to help put money down on their loan, but will also benefit through getting interest. It’s a good investment for both lenders and borrowers.

Bad Credit Loans

If you are able to get a loan, it’s probably a bad credit loan. This is still a loan so you could still get the motorcycle. The only downside to bad credit loans they come with higher interest, but regardless, it still gets you the motorcycle. Beware, bad credit loans typically come with higher penalties if you don’t follow the terms of the loan.

What to bring when trying to get a loan

Make sure you bring with you a few items including:

  1. A valid driver’s license or ID
  2. Your social security number
  3. Proof of your income, usually several months of consistent paystubs
  4. Proof of your residence, the bank needs to know you have a permanent address
  5. Make sure you are at least 18 years old if you want a loan

Getting a motorcycle loan with horrible credit isn’t impossible. Take these steps when trying to get a loan and remember that you can always improve your credit, save up a large down payment, and try again later.