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By: Mark Peeler

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Wednesday, 6-Jan-2010 12:00 Email | Share | | Bookmark
Is it Possible to Secure Bad Credit Auto Loans With Low Interes

Bad credit implies the poor credit rating of a person. It happens when a person has a history of late payments, missed payments and filing for bankruptcy. Having a bad credit affects the persons ability to get loans. Lenders are wary of giving loans to persons having a bad credit history because it is presumed that he may default payments again. Securing an auto loan with bad credit is not impossible. The 3 things about bad credit auto loans that works as disadvantages to the person taking the loan are as follows:

>> Finding a lender is not easy by a person with poor credit because it is assumed that he has a higher chance of defaulting.

>> A person with a bad credit auto loan can not file for bankruptcy as he can in case of credit cards or other unsecured debts.

>> The biggest disadvantage is that a person with bad credit will have to pay a considerably higher rate of interest than a person with good credit rating or no credit history at all. Interest rates depend on a person' responsibility and credibility for loan repayment and his earlier defaulting makes the lender increase it in order to cover his risks.

But what does one do if he has bad credit? Can not he buy a car? Of course he can. A bad credit does in no way imply that buying a car is not possible. The person can get actually get a loan with low interest rates. Getting a poor credit auto loan with low interest rate is possible if you plan well. Following are a few tips on how to do just that.

Repair your credit:
Repairing your credit is a good idea before you apply for the auto loan. Forget all the numerous credit doctor scams on the internet and repair your credit the proper way. Start making timely payments on all your credit liabilities and your credit ratings are bound to improve. You will not only find a loan, you will find one with low interest rate.

Wait for the right time:
Apply for your loan when your rating reaches 600. You will get a much lower interest rate.

Make a down payment:
Try making at least 20% down payment. This is because it saves you from being upside down on your car loan.

Consider buying a used car:
A used car does not imply that it will be a run-down thing you will be ashamed to drive. A used car may not be very old, it may actually be quite new. You can search for one that has done a comparatively low time on the road. You will get a pretty low interest rate.

Find a cosigner:
Request a family member, relative or close friend to cosign with you for your loan. Choose someone who has excellent credit history. Your interest rate will be much lower.

The best place to shop for bad credit automobile financing is online. Make sure you research well before applying.

Wednesday, 6-Jan-2010 07:13 Email | Share | | Bookmark
Which Can Be the Best Deal - New Or Used Auto Loan?

Buying a car is going to be one of the most expensive decisions of your life. Choosing one should be done after a lot of thought and deliberation. When buying the costliest car is not an option and saving money is a priority, buying a used car can be a good idea for some. If you can not decide which to buy: a new car or an old car, read on.

There are many things to keep in mind before you decide what kind of car you want, a new one or a used one. Few people can afford to buy a car without a loan, so that is something that is of utmost importance. Which can give you the best deal, a new or used car loan?

1> New car loans will always get you a lower rate of interest than a used car loan. The main reason for this is because the lender of a used car loan always fears of default payments. In case of lenders of new car loan, the price of the car is more; as such the rate of interest is lower.

2> The down payment of a used car is usually more than that of a new car of the same category.

3> The Annual Percentage Rates of a used auto loan is higher than that of a new auto loan.

4> You must know that a bad credit score will get you a higher rate of interest, right? Well, if you are in the market for a used car with bad credit, the rate of interest for your loan may just be higher. Lenders consider people with bad credit a huge risk and hence try to cover them by charging a high interest. This goes up further in case of used cars.

5> Your dream car may be too pricey for you to even consider buying it. But the same car that has been used for a year will cost you a lot less. You can have the car and yet not burn a hole in your pocket!

6> It is difficult to get financing for a car that is more than 5 years old. Getting a loan for a new car is easy.

Though buying a new car will always get you a better deal from the lenders than a used car, if money is short, buying a used car is probably a good idea. Following are a few tips you may need to get a used car loan.

1> First of all you should find out your credit score. Find out where you stand before you start looking.

2> There are many online auto lenders who are willing to give used car financing. Browsing online is therefore a good idea.

3> Negotiate well for as low an interest rate as possible.

4> Keep away from the middlemen. Strike a deal with the company itself. It will help you get a better deal for a used car loan.

Monday, 28-Dec-2009 04:22 Email | Share | | Bookmark
Getting a Car Loan With No Credit is Easier Than Bad Credit

A lot of people want to know whether it is true that getting a car loan is easier with No Credit than Bad Credit. First of all what exactly is a No Credit and Bad Credit loan? A Bad Credit implies poor credit rating of a person. It may happen for making late payments, exceeding card limits, skipping payments and declaring bankruptcy. On the other hand, a No Credit implies a person with no credit history as is the case with young college graduates who have never taken a loan. The negative effects of a Bad Credit become apparent when a person wants to take a Bad Credit Car Loan.

>> The interest payments of a Bad Credit Car Loan are higher than a normal one. This is because interest rates depend on the persons credibility and since a person already has a history of defaulting payments, the lender has risks which are covered by imposing a higher interest rate.

>> A Bad Credit Car Loan means that the person has a history of debt. The higher a person debt to income ratio is, the greater the chance of his defaulting will be.

>> A person taking a Bad Credit Car Loan cannot declare bankruptcy to write off the loan as in the case of credit card payments and other unsecured loans.

A bad credit auto financing is made available to people who have made late or missed payments. But it is much more expensive than a no credit auto loan. It is also tougher to get as lenders fear of default payments. Here are a few things you need to remember if you are in the market for a No Credit Car Loan.

>> Do open a savings and checking account. This will prove to lenders that you are responsible and you have not overdrawn.

>> Get a credit card for yourself and make sure you pay up. Department and gas store cards are easy to get and doing this you can have a credit history. A deposit will enable you to get a secured credit card. Make sure that your credit cards are reported to the Credit Bureau.

>> Make sure you can show a steady background to your potential lenders. Things like a permanent residential address, employment proof and a phone number in your name are necessary.

Getting a no credit car loan is not easy, nor is it too difficult. Follow the steps below to improve your chances of being considered for a loan.

>> Open a saving account and cell phone account in your name.

>> The place you work at should give you a statement about your eligibility for an auto loan.

>> Find someone with a good credit rating to cosign with you for the loan.

When you do get your no credit auto loan, make sure that you make timely payments. This will increase your credit rating and make it easier for you to get more loans in the future.

Saturday, 26-Dec-2009 12:00 Email | Share | | Bookmark
Used Car Loans for Students - Buy a Car With Limited Income

The twenty second century has really got the world moving. Buying a car once was a dream for college students. But now the process is very easy to carry out. As a student you would have a lot of car loan options that are just a click away. This is like a double edged winning sword that gives you freedom, makes you a buyer and all that in a very limited income. The student finance domain helps the student in saving both time as well as money. In the past few years getting a car loan for a used car was very hectic, cumbersome and a worrisome process, but now things have changed.

There are multiple ways of applying for a loan. The students can either directly go to the car manufacturers, car dealers & set deals with them about the rebate on cash, low interest and heavy paybacks. They also have an option of going to the bank and apply for the auto loan. Once when it is approved, they get a check which can be used against buying the car from any car dealer or a manufacturer. Now a days the students can also get loan from the online money lenders. Which ever option they feel is safe, they should go with it.

1. The best way to start your journey is to list down all the options that you have got to buy the car. This research can be carried out over the internet or via magazines. As a student, you must remember the fact that you must invest on a car that fulfills your basic needs and can be the most reliable. Their is no point driving a big SUV or invest in a jazz sports car and end up spending your entire student loan quota.

2. You must make an informed decision when it comes to a used car or a new one. Lets be honest in accepting the fact that the value of the car will get reduced when you take the car out of the dealers building.

Used Car Loan - The students must aim at getting in touch with reliable dealers who can help them to finalize a good deal which will reap profits in the long run. It is preferred to follow the simple tips listed here before buying out a used vehicle:

1. Do a proper checking of the car before taking the delivery so that you are satisfied with the car' interiors(like mileage, car identification number, history of the car, paint, body, lights and other accessories) as well as the exteriors.

2. Try the best dealer whom you think to be the best. Make enough ground works before selecting your best dealer.

3. Then try your best to negotiate to finalize the cost of the used car and ask your loan provider to pay you a check of the right amount.

Students must remember to stick to the basics while obtaining the student car loan and such deals must be dealt with a straight head.


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