Car Tuning,Car Finance,Auto Loans

Posts Tagged ‘Credit History’

It sounds silly, I know. Pre-approved car loans for people whose credit is tanked. But there are several good reasons for pre-approval – especially if your credit isn’t that great.

As a car salesperson in Phoenix I dealt with a wide range of people with bad credit. The worst ones were the ones with the sense of “entitlement.” Strolling onto a lot as if they were millionaires and picking out a vehicle that was obviously outside their price range based on their credit history and/or their current income.

The second type came on the lot meek and mild and wanted to buy a car “under $5,000” and finance it. They knew they had bad credit and thought they were “thinking like the bank.” In other words, lending them just enough to get a car, but not enough for a new or newer model.

Both of these types had the potential to be completely ripped off by the wrong dealership. Why? Because they really had no understanding of how credit and financing works in the car business.

So what are the benefits of getting a pre-approved car loan? How does this benefit you the most?

When you have bad credit often you can’t negotiate for the best price on a car. Or pick out the exact car you want for that matter. Why? Because what most people don’t know is that when you have bad credit lenders “charge” the dealership a fee for the risk they are taking on you.

What does this mean? The charge is usually a percentage of the car’s value – for instance 5%. So if you’re buying a $10,000 car and the fee is 5% then that’s $500 the dealership WON’T take off the price of the car! Not only that, the $500 is part of the amount you’re financing so you are actually paying the bank to assume the loan. I’ve seen charges as high as $2,000 because of a person’s credit!

What’s the difference between pre-approved car loans and getting a loan at the dealership? The bank loans you a “fixed amount” of money and it’s your job to go out and find the vehicle you want and then negotiate the price down. This guarantees you the best price on the vehicle of your choice because you’re not paying the bank to assume the loan.

Getting a pre-approved car loan also means you can pick the vehicle YOU want. On the lot I worked at we often had 3 or 4 vehicles (usually the same models) that we knew would “fit” the banks parameters for people with bad credit. So when a person with bad credit came on the lot we would try to steer them to one of these cars. Not necessarily to make more money in OUR pockets, but because we knew that the buyer had the best chance of getting approved on one of those models because they would fit the banks parameters and had enough markup to absorb the fees without losing money on the vehicle.

Getting a pre-approved car loan also keeps you from looking at vehicles that you won’t get financing for. If you are pre-approved for $15,000 then you won’t be out looking at vehicles that cost $22,000, wasting your time, and having your credit pulled multiple times by the car dealerships. Once you know how much you’re approved for you can find the best vehicle in that price range and negotiate with the dealership for it.

Bottom line – Being pre-approved for car loan a vehicle loan gives you more options and puts you in the drivers seat. You can negotiate for a good car deal and get the vehicle YOU want. So if you’re credit challenged and need a vehicle get pre-approved for the loan.

Today even lazy people talk about financial crisis and recession. But does it mean that auto loan for people with bad credit got more problematic?

No! However you need to know the rules of the car loan “game” to get a good loan.

Don’t forget that car vendors and financial companies that are giving loans to people for vehicle purchase need to make money. Especially in the times of big financial problems. To put it simply – they need to survive. And this opens the field of unique opportunity for you, even if you have unfortunate credit history.

What has changed today is that car loan providers are taking the investigation of your profile more seriously, as the whole loan industry is still aching from the “liberal” way of giving away the loans to all who apply. This has changed and has changed for a long time now.

But, once again, this has nothing to do with closing a possibility of getting a car loan for the people who have problems with their credit history. When you know that at this very second the car loan provider is torn between “we need to make money, we need more people into the service” and “I hope this one will be ready to pay” – this puts you into the position of favor. Surely, you shouldn’t boast with this knowledge in the eyes of the loan provider – this is like poker, bluff is good when you are doing it wisely.

This is the situation when the wide choice of online loan providers plays into your favor – you have a bigger number of choice. Moreover, you use a simple trick and say something like “Can you give me something better than XYZ company” and name some of the competitors. This makes them a lot more open to the negotiations.

BUT there is one drastic mistake that most of the car loan searchers do online. The good news is that you can easily avoid it with a very simple tip.

Auto Loans

Thinking of buying a car is very easy, but when it comes to arranging money for this, it seems to be an uphill task. But dream is such a thing as can wreck one’s mind. That is to say, it is the dream for which some people can do anything- why not arranging money for a car! And this is no more a problem, as there are a number of finance companies which are providing car loans. It is very easy to take; but, if the credit score is not up to the mark, then the problem arises. It doesn’t mean that people having bad credit cannot avail themselves of any loan facility. Even they need not be disappointed. Actually there are some lenders who are known for providing bad credit car finance.

Those people are considered to have bad credit score, who have payment defaults, late payments, or have any sort of legal implications due to the issues related to payment. Such people have to face some difficulties in getting car finance. But bad credit car finance which is meant especially for such people can be availed like other loans. It is also of two types: secured and unsecured.

Secured bad credit car finance is for those who want to borrow a large amount of money. And for this they are required to put some collateral against the loan. This security allows the borrower to reach some competitive interest rate on the loan. So despite a damaged credit history you are able to buy a car through the loan. If they have nothing to put as collateral, they go for the option of unsecured bad credit car financing and in this case they have to be satisfied with a small amount of money. What is discouraging about it is that they will have to manage with high rate of interest.

As bad credit car finance involves various implications, it is always advisable to take the quotes of various lenders and make a comparison of them. This effort may bear fruits and the borrower may be benefited by reasonable interest rate. One can also take the help of internet to no more about it and get the quotes of online lenders. One more thing is that if one can pay a handsome amount as down payment, it can make the deal easy and low rate of interest can be availed.

Finally the most remarkable thing is that is an opportunity to improve the credit record, so timely payments must be made.

When you have no credit, it’s actually a little bit easier to get a better deal on auto finance than it is if you have bad credit. Different things are taken into account and you will find that you can get a much better deal depending on your time of employment and how much you make each month. In some cases, what you do for a living or how you make your money can have a bearing on what you can qualify for starting out. Getting a car loan with no credit history is fairly simple and straightforward, but the deal that you get is dependent upon a few different factors.

The first factor is how much money you make each month. If you may only $1000 a month, it’s going to be really tough qualifying for car loan. This is the same when you have bad credit, too. There are basic income requirements that must be met to qualify for auto financing. For you to qualify with no credit history you need to be making a minimum of $1700 per month. Without that, it’s really not going to be happening unless you have a very strong cosigner that is either a parent or guardian. But, if you have the income then qualifying is fairly simple. The more that you make, the more that you can qualify for.

In some cases you can even get approved for brand-new car a few qualify through some of the major manufacturers college programs.

Car Finance

Regardless of your credit history, it is now possible to be financed for a Utah bad credit auto loan and find a rate that is affordable and works well with your budget.

New Ride Loans approves 99% of their working applicants and is a great place to call if you are looking for Utah car loans.  There are a lot of places that offer amazing deals but when you call it’s not the deal they promise.

New Ride Loans has a unique partnership with certain Utah used auto dealers that have come up with a system to provide shoppers with a quality used car and good finance rates regardless of your credit.

If you’re credit is good and you have a job you are almost guaranteed to be approved.  Even if your credit is bad, for any reason, such as bankruptcy, divorce, judgments or collections, they will still work with you and their partnership of lenders to find a loan that will get you into a new car and offer the best rate on a Utah bad credit auto loan.

If you’ve already found a car from a Utah used car dealer they can still help, but make sure the dealer you are buying from knows to call them in order to receive the best chance of being approved on a loan.  If not, they can give you access to their list of approved dealerships that can help you find a car that best suits your demands and work directly with them to take care of the entire process in one stop.

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How do car loans work?

There are a lot of things to consider when obtaining an auto loan. Your credit score, length and amount of credit history, and your source and amount of income. You’ll also want to consider that for many people they’ll need a co-signer on their first auto purchase. This person can be a family member or a friend.

In order to qualify for a car loan you need to find a bank or lending institution and apply (fill out an application). The lender will process the application and either approve or deny your application. Once approved they determine how much money they can lend you, how long they are willing to lend it and what interest rate they will charge you.

In extremely simple terms, when you find the car you want, you apply to the bank (or lending institution) for a loan. If approved, the bank pays the owner (or car dealer) for the car. The owner (or car dealer) is no longer in the picture. Any issues are now between you and the bank. You now owe the bank for the car whether it is a running car or piece of junk unless the previous owner offered a warranty.

Keep in mind that it is possible to be accepted for car loans even if you don’t meet the above requirements (credit history, co-signer, source of income). Obviously, you have to have a source of income, but you can receive a car loan without much credit history. The downside to this is that your monthly payments may be more expensive because the seller is taking a bigger risk on someone with out credit history.

For more information go to www.get-loans.org/car.html to find some of the easiest no-hassle loans.

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