Bad Credit is OK for Used Car Loans

Bad Credit is OK for Used Car Loans

One of the most important things in American society is keeping your credit history as free from errors and delinquency as possible. Credit, after all, plays an instrumental part in our lives, and is absolutely necessary when you want to take a loan for nearly any purpose. Still, there are used car loans for bad credit if you know where to look. Read below to gain some tips on how to go about financing your used car.

There Are Lenders That Take Low Credit Scores into Consideration

This shouldn’t be so surprising; there are millions of people in the States who fall below what is considered a ‘good’ credit score. As such, there’s a sizable market for providing car loans to them at manageable prices. This doesn’t mean that they disregard your credit score; rather, it means they tailor services for you that account for the risk they’re taking on by lending to you. If you can handle that, then there’s certainly a used car loan out there with your name on it.

MyAutoLoan is Willing to Give You a Chance

You’ll be impressed by how quickly this loan-specialization website places viable lenders right underneath our nose in seconds to minutes.It’s the rare lender that promotes private seller deals, too, and they are short on surprises: the loan calculator tells you the likely interest rate before you take the time to apply in earnest. As an example, for bad credit holders, a FICO credit score of just under 600 could mean an APR (annual percentage rate) of between 10% and 25%.

MyAutoLoan also requires you to list your income because they need to know if you can pay the rate in principle. The minimum income that’s eligible is $1800 per month. Take a look at their web portal to learn more about the restrictions they have for bad credit auto loan seekers.

Blue Sky Auto Finance is Available

Bad Credit is OK for Used Car Loans

Not only does the Blue Sky car loan outfit accept bad credit holders and routinely approves them for car loans, they’ll even consider you if have a bankruptcy on file! It’s imperative that the bankruptcy is not ongoing, though, and must be discharged. The minimum credit score is 550 for a pretty much guaranteed approval; lower than this and you might still be able to secure a loan after a consultation and specially-tailored package. Lending is all about risk, after all, and they need to ensure that you can make the monthly interest payments on the principal amount.

Capital One

This company is certainly big enough to add the provision of auto loans to its impressive collection of investment and finance vehicles. The Capital One Auto Finance division has tens of thousands of lenders under its flag, which means you have many choices. There’s even a trademark Auto Navigator Tool that will tailor a package for you after you enter in requested details and explain what you’re looking for. To get in-person representation, however, you have to live in the lower half of the U.S. or halfway to the Atlantic Ocean – otherwise it all has to be done online. Not that this is a bad thing, of course.

These are just the tip of the iceberg; online sources and neighborhood sources are out there that will deal with you if you need a car loan but your credit is a work in progress. Know what you’re getting into by carrying out research on the companies and on your own credit status, and you should be alright.

Benefits of Title Loans

Title Loans

A title loan is an amount of money you can borrow for a short time by offering a vehicle as collateral to the creditor. In the United States, most people obtain title loans by giving lenders titles to their cars. So you may have heard of these loans exclusively as car title loans.

However, title loans can be obtained with pickup trucks and motorcycles as well. Once you get your money, the title loan is typically required to be paid back in 30 days.

Title loans are quite common in many states. If you are considering obtaining a title loan yourself, here are several benefits you should know about:

Title Loans are Quick and Easy to Get

Compared to many other secured types of loans, title loans are rather easy to get. You are only transferring the title of your vehicle, which is less of a hassle to do than transferring the title of other types of properly, like a house. You don’t usually have to visit a title loan lender multiple times to get a loan approved, as with a bank. As long as your vehicle is in relatively good condition, and if you have a source of income, your loan will be approved and granted. It’s possible to receive a title loan in less than 5 days.

Great When You are in Dire Need of Cash

Life is unpredictable. You never know when you might need a small amount of cash suddenly for things like emergency home repairs or for emergency medical bills. Most big league lenders and banks do not offer small cash loans that range between $1,000 and $10,000. For folks who don’t have ready access to similar amounts of cash when in need, a title loan could be the only hope. As mentioned above, a title loan can be obtained quickly too. Therefore, this option is quite perfect for people who really need cash right away.

Title Loans are Granted Even for Borrowers with Bad Credit

Title loans are secured loans. What lenders care about is the state of your vehicle, not the state of your credit history. Even if your credit history is really bad, you can very likely obtain a car title loan. If conventional lenders reject your loan application because of your bad credit history, you can seriously consider a title loan. As long as you have a good vehicle to offer as collateral, most lenders are happy to give you the money you need quickly.

Flexible Payment Methods

You have to repay car title loans usually within a month. However, if that’s too much to repay, many lenders allow monthly instalment payment plans. You can take your time to repay the loan in full. However, make sure these monthly instalment plans do not drag on for too long. If they do, you will have to pay a lot in interest.

Generally speaking, obtaining a car title loan is a much better option than selling your vehicle for cash in a hurry. Title loans make sure that there’s a way to get your vehicle back in a month or a matter of months. If you sell your vehicle, you will be without vital transportation to get to work. Also, buying a new one will be very expensive too.

Using Your Car as Collateral – Turn Your Auto into Cash Now

car loan

There has been an increase in the number of borrowers who are using their cars as collateral with auto title loans, this is similar to a payday loan but with sometimes better terms as the vehicle has a lien placed upon it.  What a borrow does when they take out a title loan is they must allow a particular lender to place a lien on the car’s title.  The lien will be in the amount of the loan, plus any applicable interest that is set out in the line of credit.

Title loans do not typically require the borrowers credit score because they are secured with the collateral of the vehicle.  Title loans can be seen as risky if you do not have a good payment history, but for those who pay on time and need cash quick they can be seen as an alternative to a bank to access funds quickly.

One of the great perks of the auto title loans is that you can have the cash within an hour, sometimes as short as 15 minutes.  Generally, they are lending for less than the value of the vehicle, so if your vehicle is older and a late model, it may be difficult to obtain an auto title loan due to the vehicle value.

An auto title loan does not typically do an exhaustive check of your sources of income and debts, because the transaction only values the worth and the condition of the vehicle.

Some of the disadvantages of the auto title loans are that they can have sometimes very high interest rates, which are higher than you could see on a comparable credit card.  The loans are typically very short, similar to payday loans so that you can have access to the money before you would typically be paid.

It is imperative that you pay your loan on time or your vehicle could be in jeopardy and a whole lot of other problems if you were to lose your vehicle.

As with any type of financial instrument, make sure you read the fine print and that you understand what you are signing.  Make sure you know the APR and not just the monthly premium that you will be paying.  There are sometimes other fees that add to the amount of the loan.  Through education you will find an acceptable loan so that you can get the cash you need quickly!

Is Auto Dealership Financing Worth the Convenience?

Dream Car FinancingIf you’re in the market for a new car, not only must you find a vehicle that fits within your budget but also find financing to pay for it. Some options include paying the full cost from your savings account, negotiating a personal loan with your bank, or signing up for a leasing agreement. Yet another option is to take out a loan directly at the dealership. There are a number of pros and cons to auto dealer loans, which are worth looking at in greater detail before you sign on the dotted line.

Benefits of Dealer Loans

One of the primary reasons why you might be tempted to finance with your car dealer is the sheer convenience of it. To negotiate a personal loan with a third party lender, you’d have to order, deliver, or fax an array of documents back and forth. You may have to drive to multiple locations as well to sign the paperwork, which can make purchasing your car a long and drawn-out process. By contrast, when you finance with the dealer you can often drive off the lot on the very same day. The dealer may offer their own financing, or they may arrange it on your behalf for added convenience.

Another potential benefit of dealer financing is the possibility of an extended term contract on a used vehicle. You may not be able to immediately afford a new Ford Kuga, for example, but if you’ve spotted a used Ford Kuga for sale on carsales.com.au and gotten in touch with the dealer, they may be able to work out a long-term financing contract. Banks and credit unions tend to only offer extended-term financing for new vehicles, which may be out of your price range. Although you’ll pay more in the long term in the form of interest payments, going through the dealer could be a good option if you have a low monthly budget. Auto dealers may also be able to arrange financing with a higher loan to value ratio, if you have little deposit to put down initially. They tend to be more willing to work with you even if you wouldn’t meet normal lending criteria.

Potential Drawbacks to Consider with Dealership Financing

At times, auto dealer loans get an unfair reputation for having much higher interest rates than banks. However, this can be deserved at other times. Even the difference of one percentage point can really add up over time, so be sure to compare all rates carefully. Auto dealer rates tend to be higher because they act as a middleman between the consumer and the bank, which is why going straight to the bank can often yield lower rates. Auto loans at dealerships also tend to come with add-ons that you may not want or need. Be sure to read through all paperwork carefully to identify and avoid these extra financial products.

The Bottom Line

In many cases the issue of bank vs. dealer financing boils down to trust. If you have already arranged loans with a representative at your bank in the past, you may trust them to carry out auto financing as well. By contrast, a dealer representative will be a stranger who is also trying to sell you a car. Yet it’s worth looking closely at dealer financing, as many options offer low rates and the added convenience of swift approval and minimal paperwork. No matter where you take your business, always read the fine print carefully and only agree to what you can afford and fits within your budget.

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The First Car I ever Owned…My 1990 Chevy Cavalier…

I was reading CNN a few weeks back and stumbled across this article.

I have to say that the first car I ever owned was my first car a 1990 Chevrolet Cavalier in gunmetal grey, probably my best car as well.  My parents came off a lease that we had been driving and my parents bought me my first car.  I was 17, it was a used car and had a little over 100,000 miles on it.  Being used and having that many miles it had some wear, but that didn’t stop me from falling in love with her.  I loved her so much that everyone I knew referred to her as “Magnum.”

The best part about having it was that it was all mine.  I was young and back when I thought it was cool to put all those lights inside to reflect the inside of the blue and I put in a sound system so that trunk would rattle.  I don’t remember what gas prices were back then but they were no where near what they are today.  I remember tossing in 20 bucks and it would give me a little more than ¾ a tank of gas.  Those were the good ole days.

The car allowed me to get my first job and start collecting a paycheck.  Have a means of transportation allowed me to have an endless amount of freedom.  I started working at a neighbors business, and the trusty Magnum never let me down on the days that I had to go to work.  I was able to build up a savings account and take some of my financial burdens my parents had been covering with my new income like car insurance.  I kept the car 4 or 5 years until I got my first real job after graduating college with my Bachelors degree.  I purchased a 2005 Nissan Altima brand new in Majestic Blue; we may talk about her another time.  My siblings inherited the Magnum and they sold it soon after.  I was out on the road once and saw the Magnum drive by and I just smiled because of the memories we had together.

It is different owning a vehicle now because it is not as big a part of my life as a first car was.  Having a Grand Cherokee now is nice but it gets me to work and where I need to go.  I wash it occasionally but the sentimental value is not there like the first car I ever owned where you went on so many expeditions and explored with.

What was your first car you ever owned that you ever owned?