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!

How do Guarantor Loans work and are they right for you?

Payday lending has become a highly contentious issue in the UK, after huge criticism from consumers triggered stringent government regulations and a widespread crackdown. Even though we have now reached a point where interest rates have been capped within the sector, there is still criticism regarding the distribution of payday loans to students in the UK. An estimated 25% of undergraduate and postgraduate students in Britain own an average of £342 to payday lenders, which highlights the emotive nature of the sector.

Exploring Guarantor Loans: A Viable Alternative

As a result of this, a number of alternative, short-term lending options have emerged on the market in the last five years. The most prominent of these (and the one that has emerged as the most popular option recently) is the guarantor loan, which has a simple premise and offers some advantages to lenders. These loans are usually offered to individuals with poor credit, and are offered to applicants so long as they can find a reputable guarantor who is willing to assume responsibility for the debt if it is not repaid.

These firms are also different to payday lending outlets, as they offer higher sums of capital, extended repayment times and lower APR. In terms of the former points, reputable brands such as Trust Two offer anywhere between £1,000 and £75,000 to applicants, and this sum can be repaid over a period of months rather than weeks. With regards to the issue of APR, guarantor firms operate according to strict market regulations and charge an average rate of 39%, which is far more reasonable than traditional short-term loans and make it easier for individuals to repay them.

Are Guarantor Loans right for you?

As guarantor loans have become more popular and filled the void in the market created by the crackdown on the payday lending sector, they have also become a target for criticism. This is only to be expected, as any form of short-term lending becomes susceptible to scrutiny once it has entered the consumer mainstream.

As with any type of loan, however, your focus as a borrower should be on your own personal circumstances and the type of financial product in question. So long as you understand the nature of the loan and its financial implications, you can make an informed and responsible decision that enables you to remain debt free in the long-term.

Smart Ways Earn Extra Cash & Approach Loans

There are numerous options for earning extra cash. There are also smart ways to reap a greater reward from an extra cash solution. This at times seems to potentially be the best route to take. Investments are at the hierarchy of smart ways to earn cash. Another lucrative solution is to pursue opportunities presented because of acquired “skill sets.” Moreover, if you have an expertise then you are an asset yourself.  You may desire extra cash to cover short term, emergency, and immediate expenses. A smart solution for these types of scenarios can be associated with borrowing money for these purposes.

It is for this reason that we have payday loans. Payday loans are very attractive because it is money that you can acquire immediately. But, just because payday loans are expedient, you certainly do not have to make the decision to accept a payday loan so quickly. If you want to earn extra cash without owing then follow these measures accordingly.

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What to do Wednesday in Personal Finance? How about a personal loan?

Think Finance

What would you suggest as the best course of action in this situation?  If you have been following my blog for the great length of time that it has been around, ok since last week, you would know we recently became a two income household. 

Here is where the story starts: One income, two kids and a wife all on a salary of 100k minus 50k.  I was earning close to 50k when we had our second child.  We have 2 cars and a mortgage payment but to help offset some of this we have a rental unit in the top portion of our house.   Our debt journey started once we graduated college and started popping out the little ones.  My wife wasn’t working when we first found out she was pregnant with our first child.  She started to substitute teach until the doctor pulled her out of work due to her pregnancy. 

Let’s face it having a child is expensive; forget about all the things that you know you will have to spend your money on like food and diapers.  You lose track of things like you have to keep the house warmer in the winter so their little fingers don’t get cold.  Health insurance takes a big jump going from couple to family.   As time passes and months go on we find ourselves with some credit card debt spread out over a few cards with rates ranging from 9.99% to a little over 16%. 

We went to the local bank to take out a personal loan but were denied because the income we had covered our expenses and they couldn’t see where the additional money would come from to pay the loan.  I could tell them where it would be when I consolidated all the credit cards onto the loan, but let’s face it an actuary in their home office said we were a risk they were not willing to take on. 

Fast forward a few months, the wife has a job we are on the up and up.  We have managed to stay current on all of our debt obligations and are exploring that personal loan again.  With interest rates at rock bottom now, we would be crazy not to consolidate.  We are going to approach the lender we had previously with my wife’s new fresh off the press pay stubs and try this again. 

We explored the 0% credit card offer and found out that we would be further ahead to take out a personal loan.  After the 0% expired we would be hit with the interest that had accrued all year on the balance.  You are not a rate chaser are you?

We talked about a home equity loan, but we just purchased our house 2 years ago and didn’t have sufficient equity to take out a loan against.  So that idea quickly vanished. 

We think we are going to go with the personal loan, but if anyone has any other suggestion on a good course of action, I would certainly entertain them.  I think the personal loans are around 3-4% at the credit union we are members at.

PHOTO BY: @Boetter