Tag Archives: car loan

Bad Credit Car Loans Explained

April 28, 2019   Auto Loans

There are many questions about what a bad credit car loan actually means and does for someone looking for auto financing with less than perfect credit.

What is a bad credit car loan?

Specialized bad credit car loans are here to help people with bad credit history or any other credit related problems such as marginal credit, repossession, slow or low payments, bankruptcy or a first time buyer. Car Loans with bad credit is no more a big problem when you have wide choices of bad credit car loans with nationwide approval fast and free.

An online bad credit car loan is a smart solution for any credit situation. A bad credit car loan is for a person who cannot get pre-approved for a car loan through traditional financing options such as credit unions, car dealers, local banks or leading automotive financing such as GMAC and Ford Credit. These lending institutions generally do not approve car loans for people with bad credit or limited credit history. Bad credit car loans are usually funded by car dealers at first and later sold or assigned to a finance organization.

How can one qualify for a bad credit car loan?

Bad credit car loan financing is possible for US citizens or legal residents of 18 years of age or older who has a monthly provable income of minimum $2000 per month. Different auto credit lenders have different criteria and monthly income limits to approve a bad credit car loan. Your employment must be full time or have able to have guaranteed fixed income for the bad credit car loan term. You should be able to get car insurance and give proof of residence and a working phone number. You will also need to furnish your identification either in terms of valid driver’s license or social security number.

Quick and guaranteed bad credit approval

In today’s economy bad credit car loans are common as more than two thirds of the population face credit crunch problems. In such case getting a bad credit car loan is easier than you think.

It is easy to get approved within minutes for a bad credit car loan with online application form. It is fast and easy to apply using online applications for a bad credit car loan. Most of the bad credit approval websites offer no obligation, free utility to apply online which can be approved within few seconds. These bad credit car loans offer attractive loan terms and low interest rates regardless of past bad credit. Apply for a bad credit car loan that offers you no down payment financing.

Review your bad credit financing options

Hundreds of thousands of bad credit car loans are approved every day across the nation. So you will face little or no problem to find the best suitable car and bad credit car loan for yourself. It will be good for you to review a couple of things before you apply in order to smoothly process your bad credit car loan application.

Review your credit history or know the problems. You can get a free credit report from nationwide consumer credit reporting companies. Also decide how much you can pay for your car. Calculate your final car price and monthly payments using a free car loan calculator especially if you are applying for a bad credit car loan. Prepare documentation. Bad credit car loans lenders will ask for your identification and employment proof. Be ready with proper paper work and get an easy approval for a bad credit car loan.

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Are You Upside Down on Your Car?

April 15, 2019   Auto Loans

Being upside-down on a car loan, means owing more on the loan than the trade-in-value of your car. As you owe more than your car value, even selling your car for payment could not help, so you are stuck with the car and the payments. Upside-down on your car loan is not a problem until you don’t want to change your car while making timely payments and you have auto insurance in case of accident.

Quite a lot of people experience this situation for the simple reason of not choosing loan terms and type of car wisely while applying for a car. Depending upon the age of the car, some cars will depreciate early. Thus it is necessary for one to consider the terms in accordance to the type and value of car. For instance, if a person has amortize period more than five years, than probably you owe more interest than the value of car as most of the monthly payment goes toward paying off interest amount. Same is the case with people having bad credit as they are forced to accept a higher interest rate while buying a car and as a result a whole lot of their dollar goes in paying up only the interest amount while leaving the principle as it is. Although there are quite a few option available if you are in this situation.

Prepayment

For the people being upside-down on their car loan, pre-payment could be the smart option to pay off the loan faster. Hence, if a person does not owe much on the loan, he/she can make extra payments each month get rid from being upside down. As making extra payments will help to pay off the loan faster. But before paying any extra payments you need to make sure that your current loan does not have any prepayment penalties that could restrict you from paying extra cash.

Car Refinance

Refinancing upside-down car loan is also a good option for the people as refinancing allows you to redefine your loan terms. Hence through refinancing you can either lower your interest rate or shorten your term period which can ultimately benefit you to get out of upside down situation. In case your lenders do not grant you a traditional refinance car loan you may opt for a home equity loan. These type of secured loans have a low interest rates which not only allows you to pay off your loan quickly but also without spending additional cash. With refinancing you can even shorten your loan term and pay off the loan much faster and do not loose anymore money on the car.

Transferring Balance to a New Car Loan

For the people who are looking to replace their car can close the gap of unpaid balance on their current loan and the car’s resale value purchase by transferring their unpaid balance of old car on the new car loan and make the lump sum payment for both the car. Thus you can get your new car while being upside down.

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