Refinance car loan » Credit Scores

Auto Loans For People With Bad Credit History and Low Credit Scores

admin — Wed, 19 May 2010 18:02:39 +0000

We all need some type of transportation, and for most Americans that means a car or similar vehicle. However, most of us don’t have thousands of dollars in the bank to pay cash for a new car, so we finance it with an auto loan. And even folks with a bad credit history and low credit scores can get an auto loan. Here’s how:

BE PREPARED:

Any car loan lender is going to want to see some paperwork. Be prepared by bringing copies of pay stubs, proof of address, and some type of record that shows how long you’ve been employed. You’ll also need all the basic information, such as your phone number and social security number. It helps to have all this information handy before you apply for the loan, since being prepared will speed up the process and demonstrate your seriousness about buying the car.

PAY MORE:

People with bad credit are generally considered risky borrowers from a lender’s point of view. This means the lender may charge you higher rates and fees to offset the risk. In general, expect to pay at least a few percent more on your interest rate if you have a bad credit history. You may also need to have a larger down payment than usual, since it’ll lower the amount you need to borrow and also demonstrate a certain amount of fiscal responsibility. If desired, you may be able to lower the interest rate by securing the loan with collateral, such as a piece of jewelry, your home or another vehicle.

MAKE PAYMENTS:

Many used vehicle lots offer a “Buy Here Pay Here” option. Essentially, rather than undergoing a detailed credit check, the dealer allows you to make weekly or monthly payments directly to him. These kinds of loans are usually limited to small, independently owned car lots.

Before you immediately accept the car dealer’s word that you have bad credit, be sure to check your credit score on your own. Almost everyone has a black mark or two on their credit history, and some unscrupulous car dealers might tell you that you have “bad credit” in an effort to push higher interest rates on your loan.

By: Carrie Reeder

Auto Loans With Bad Credit – Lenders Willing to Take a Chance

admin — Wed, 05 May 2010 23:55:33 +0000

Just because you have bad credit don’t feel like you can’t get the car you’ve got your eye on. The market may be on your side as auto loans with bad credit become more and more common with major lenders.

Lenders these days are being forced to cast a wider net around potential auto loan applicants – meaning a granting loans to a wider credit spectrum in order to sustain growth.

The reason?

The pool of “prime” borrowers – those with 700 plus credit scores – is growing less and less. According to Standard and Poor’s, the number of subprime auto loans closed in 2005-2006 was up 108% and continued throughout 2007 and will probably continue into 2008 and beyond.

American automakers are facing big problems as the big 3 ( Ford, GM, Chrysler) captured only 49% of the US market share so far in 2008 with all indicators predicting even more loss to foreign auto makers.

What does this mean to you?

No dealers will turn down auto loans for bad credit reasons if it means losing market share. Of course there are some circumstances where you probably won’t qualify ( not employed or have had a recent repossession) – but low FICO scores shouldn’t be a problem.

There are many viable auto loans with bad credit candidates in mind, designed specifically to take on riskier borrowers. It’s proven that this spectrum of credit candidates makes up a large portion of many major lenders annual growth. Lenders are willing to compete for auto loans with bad credit candidates

So don’t let bad credit stop you from getting a decent vehicle – see the link below for a good selection of bad credit car finance providers.

By: Leslie Collins

Best Places to Refinance Auto Loans

admin — Sat, 05 Dec 2009 12:12:26 +0000

You might not know it, but you can save quite a bit of money when you refinance auto loans. And there are numerous ways you can refinance the auto loan. As long as you follow through the entire process you can be sure to save on your monthly car payments. What would you say to a savings of $60 a month on your current car payment? That’s $720 a year and $3600 over the course of a normal 5 year loan. Now we’re talking about a large amount of cash!

So where do you refinance auto loans?

1) Your local bank.
Local banks can be a good place to refinance a car loan, especially when you already have a solid relationship with the bank. Check them out first, but don’t just take the first offer you get. Take some time and do your own research into other possible refinancing options as well to get the best deal.

2) Your local credit union.
Credit unions often offer outstanding refinancing rates, especially for those with high credit scores. Just be aware that many credit unions won’t work with those that have had past credit problems or issues with their credit rating.

3) Your local car dealer.
Car dealers can work with you to refinance auto loans, however many times they will just try to sell you a new car. This completely defeats the purpose of trying to refinance your car loan in the first place and will often lead to even higher car payments. If you choose to refinance through a car dealer make sure you don’t get sucked into buying a new car.

4) *BEST* Online solutions.
Using an online lender can be your best option to refinance auto loans. You’ll find that the application and approval process can both be easier than offline loan companies. Plus, the online auto lenders will go through a network of companies to get the best rates for your car loan. Another positive is that the online lenders will only need to pull your credit report once to compare rates meaning you’ll have less activity on your credit report and less chance of being penalized because of too many inquiries.

Once you get out there and compare auto loan refinancing options you’ll see that in many cases online refinancing is the way to go. It allows you to quickly and easily compare rates from a bunch of lenders and will almost always get you the best terms and save you the most money.

By: Steven Walters