Auto Loans With Bad Credit

Auto Loan Originations Reach Prerecession Levels, Equifax Reports

admin — Sat, 08 Oct 2011 15:15:59 +0000

New-vehicle loan originations were up 15 percent in the first half compared to the same period last year, according to Equifax.

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New Credit Growth Highest in Two Years, Equifax Reports

admin — Sat, 08 Oct 2011 15:12:59 +0000

First-half credit growth outpaced the first half of 2010 by $43 billion, with the automotive segment being one of the key drivers, according to Equifax’s National Credit Trends Report.

Easy steps in which you can secure an auto loan even with bad credit

admin — Fri, 16 Sep 2011 14:15:49 +0000

If you have poor credit score, you must be spending sleepless nights thinking about the prospects of taking out a loan. Since the sub-prime mortgage crisis in the US, there are very few lenders who lend money to people with bad credit score. However, if you want to take out auto loans with bad credit, you need not worry as there are ways to take out bad credit car loans. Just as it is possible to get the best auto insurance policy after shopping around, you can also take out an auto loan after shopping around among various lenders. Here are some tips that’ll help you choose the best auto loan despite having a poor credit score.

Get realistic while getting an auto loan: The first step that you need to take to get car loans for bad credit is that you have to get realistic. What happens with most car shoppers is they try to find something big as their expectations are very high. You must also be aware of the down payment that you need on the loan as very few banks will lend you money with zero down payment if you have a poor credit score.

Shop around for dealers that specialize in bad credit car loans: There are many bad credit auto loan lenders that specialize in approving loans with poor credit scores. You have to look for such lenders and make sure you get the best loan from them that will not take a toll on your budget. The lenders who deal in bad credit car loans will be more flexible with the down payment and the requirements as compared to that of the other banks and financial institutions.

Get copies of the documents needed: Once you’ve decided the auto loan lender from whom you’ll take out the auto loan, you must start getting together copies of the documents that the lenders may need while giving you an auto loan. You may need to bring in copies of your drivers license, paychecks, phone bills, electric bills and other important bills. Your residential address is also a necessity before you take out auto loans with bad credit.

Don’t get scared at the high rates: As you will be taking out the car loans for bad credit score, you may be asked to pay high rates. Don’t get scared by the rates as it may be relaxed when you start making timely payments on your auto loans. When you take out an auto loan, you must manage your payments so that you repay on time.

Follow the steps mentioned above when you’re interested in getting auto loans with bad credit. Also try to repair your credit score by monitoring your credit reports so that you’re not turned down on your loan requests. Make sure you get your auto insurance policy too in the future so that you can avoid any kind of sudden financial loss.

Guest Writer

Grace Ruskin
Financial Advisor & Writer
Los Angeles, CA, United States gTalk – grace.ruskin

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Can someone with very bad credit be put down with someone with perfect credit on a car loan?

admin — Thu, 11 Aug 2011 17:51:29 +0000

I recently applied for a car loan with a family member. I was the co signer but my credit is awful and their credit is perfect.I was told that their would be no way to put me in the loan. Is that true?

It all depends on how "awful" is awful. And if you did the loan and your family member co signed for you that may be workable. Because if anything happens to you, the co-signer is liable for the debt just as much as you.

Never hurts to ask questions to the lender. I check my credit through one of the agencies every quarter. It costs about $15 but it can really help you if you know what a lender can see.

bad credit… car loan?

admin — Thu, 11 Aug 2011 17:51:28 +0000

I purchased a condo 2 years ago, hired an inspected and the inspector missed a sewage leak in the crawl space that resulted in the 60% of the crawl space being covered with toxic mold. 6 weeks later and 2 failed remediation’s I was hospitalized and had to abandon the condo and all my personal belongings. In the past 2 years I have moved no less than 12 times and had to discard all my belongings and buy new cheap clothing due to possible cross contamination. Due to the cost of attorney’s fees (who couldn’t help me because I ran out of money), Dr’s bills, hospital stay’s, emergency room visits, medications and supplements my credit card went from having a zero balance to being maxed out. In order to pay back a portion of the credit card the bank repossessed my truck (cross collateralization) which I was living in because it was the only place that I could find that was mold free and could no longer afford to keep replacing my things every time I had to move.

I have now lost everything I own, my credit has been destroyed and my health continues to deteriorate because the house Im living in had mold but it was removed 9 months ago but because I am so hypersensitive the micotoxins that remain in the carpet and furniture still affect me.

I need to purchase a reliable vehicle so I can sleep in and get me to and from my Dr’s appointments but cant because of my bad credit. I have never been late on any debts and before I purchased the condo my credit was immaculate now because of my constant misfortune Im left without a vehicle. If I don’t find financing soon I will soon be homeless.

Can anyone offer some suggestions as how I may ascertain financing without being charged 20% + in interest without a co-signer? Im not a credit risk but rather a victim that’s trying desperately to recover from mold exposure.

Thank you
Thanks for both your replies, my life has been destroyed all because the inspector I hired didnt do his job. In the past 2 years I have spent literally tens of thousands of dollars looking for safe housing and cure for mold exposure, now I don’t even have a vehicle to get me to my Dr’s appointments and Im just as sick today as I was after the exposure.

Thanks again

There are peer to peer websites where you might get some help. These are sites where you post your loan information and private individuals can choose to fund a portion of your loan. Google P2P lending or peer to peer lending to find some. There are no guarantees that anyone will fund your loan or that you’ll do better than 20% but you will get a better rate than you could get through other lenders.

Credit status, car loans – student!?

admin — Thu, 11 Aug 2011 17:51:27 +0000

Hello!

I’m a student at a college. I wish to purchase a used car – between 3k-6k. However, I haven’t established a history of credit and when I tried to apply for a credit card I was denied (I have no debt FYI).

Anyways, I don’t have the money to pay 5k up front, maybe 1/3 if I dip into my college grant but I really don’t want to do that.

are there any interest free loans or favorable small loans for someone like myself? I could afford to pay 50-100 monthly and my parents will cover insurance/repairs.

Suggestions?

However, I haven’t established a history of credit and when I tried to apply for a credit card I was denied (I have no debt FYI).
–

I see you working, but you did not have stable long-term income, either.

Not sure if you did not think that was important, but you don’t have good credit without good income.

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The Two Biggest Mistakes People Make When Applying For Auto Loans With Bad Credit

admin — Wed, 03 Aug 2011 19:01:12 +0000

Two Biggest Mistakes People Make When Applying For Auto Loans With Bad Credit

1) Exaggerate or guess about information on the credit application- When you apply for auto loans with bad credit it is important to be completely honest and accurate when filling out the credit application. The lender you are attempting to obtain financing through will more than likely verify all the information on the application before they will disperse any funds. As an example at some point during the approval process the lender will ask you to provide proof of income. This will typically be your most recent paystub. If you over estimate your income on the application you will more than likely be rejected during the verification process if your paystub does not substantiate what you represented on the application. Lenders that specialize in auto loans with bad credit are very thorough when it comes to verifying information on your application. Get documentation together ahead of time and have it at your fingertips when filling out the loan application. You don’t want to risk not getting approved because you are guessing about certain portions of the application. Here is a list of documents that will help:

-Recent Paystub (proof of income)

-Utility Bill (proof of residence)

-Insurance Card (proof of insurance)

-Drivers License.

-List of 5 to 10 personal references (friends and family)

2) Attempting To Purchase Too Expensive Of A Car-Getting approved for auto loans with bad credit can be tricky at times but nothing will get you turned down faster than if you attempt to “over purchase”. Yes it would feel great to get approved for a brand new expensive car but let’s face it, the reason your credit is damaged is because you are financially unable to afford the debts and obligations you currently have. So if that is the case does it make sense to go out and try to purchase something brand new with a large monthly payment? Most subprime lenders would answer “no” to that question. Be realistic and flexible as to what the dealer or lender is able to get you approved on. Remember that you are in a credit rebuilding mode at this point. Find something that fits your needs right now and not your wants. This will allow you to get into a nice affordable payment that you can comfortably handle every month. As you make timely payments on this loan your credit score should start to rise and next time you can go after the car of your dreams. Although in rare instances it is possible, insisting on a new or very expensive car right now will only get you turned down.

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Getting a loan for a car with bad credit?

admin — Sat, 21 May 2011 16:07:10 +0000

I’ve got fairly bad credit and I need a car loan. I’m trying to buy a car from a dealer for around 4000. The dealer doesnt offer loans, I have to get it from somewhere else. I’m from WA if that helps any. I dont know where to go. Both of my banks have said I need a co-signer, but I dont have anyone that can do that for me.

You face a couple of difficult hurdles.
1- With bad credit, your choices of finance companies is limited and you will pay a very high interest rate because you are considered high risk.
2- Many finance companies will not finance a car that is older than 10 years or has more than 100,000 miles. At the price range you suggest, you are probably pushing both limits.
3- If you don’t have a co-signer, you probably don’t have a family member that can give you a personal loan.

Your choices as I see them:

Find a dealer than has finance options available. They can place almost anybody but the cost is very high.

Try to prequalify at one of the online finance companies. Here

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need advice on bad credit car loan?

admin — Sat, 21 May 2011 16:07:08 +0000

I’m single and I rent my apt. I have a steady job making 45k year with direct deposit but bad credit. I see advertisements for these bad credit car loan places? Is it possible for me to get an 18k loan without a cosigner in the real world from one of these places or am I wasting my time? Has anyone ever worked for one of these places or been in my position and rec’d a loan & where from, what company?

Auto finance is what I do for a living and your best bet will be to find a large dealer the advertises Special Finance and go talk to the Manager.

Stay away from the buy here pay here places because over 90% of them do not report to the credit bureaus.

In almost 8-years of doing this, I can not remember anyone that could prove their income and had enough of a down payment that I did not get approved someplace.

Car loans and credit scores..?

admin — Sat, 21 May 2011 16:04:30 +0000

I just bought a newer used car last friday, i had to purchase from a dealer that specializes in no credit/bad credit. In my case, i have no credit! They report to all 3 bureaus when i make my monthly payments. Im 23 and basically a ghost to society due to no credit. I use cash for most things, and was afraid of being careless with a credit card. My thoughts were that if i have no credit, its better than bad credit. Im now seeing the error in my thinking and Im working on getting my first credit card (sounds so bad lol) , and building my credit history. My questions is, how soon after purchasing my vehicle should i wait to apply for a credit card? When i looked at my credit report, it had a lower score of 560, is that right for someone with no credit? Any helpful advice would be appreciated.
The dealership is owned by a major pontiac buick gmc dealership in my area. They definitly do report, it is in writing, and there was nothing on my credit report. I used to work for the pontiac dealership a few years ago, and was able to look a little deeper into the credit report. There were some inquiries on my report from other lenders i applied with for auto loans.

Now, ideally you should wait about 4 months. I say 4 months because your finance company can take up to 3 months to update the credit bureau. You defiantly want to wait for that company to report so it strengthens your credit prior to apply to any addition credit. Now I wouldn’t suggest getting a credit card, I would get a loan. Even if you don’t need the money, use it to pay the loan back rapidly (speak to your bank for the best short term loan, with none or minor payoff penalties) Pay the loan back in 3-4 months. That will do wonders for your CBS score. With the loan you will get a WAY better interest rate then a credit card. If you don’t wanna do that then get a line of credit, the interest rate again is WAY better then a credit card and it works kinda the same as a credit card. Just have the bank set it up directly to your check card. The interest rate is way better like 6-7% versus 18-21% a credit card offers. And if you really have to get a credit card then get a secured or prepaid, credit card. They still report to the credit bureau, it will still strengthen your credit your credit.
Im not sure exactly what your CBR score would be when you have no credit, but 560 does sound alittle high but it may not be. I suggest checking out eqifax online they should have a chart or something.

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