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The Top Places to Find Auto Loans for People with Bad Credit
There are many auto loans for people with bad credit and you just have to know where to look for these loans. Finding the auto financing that you need is not always that easy, however, if you know where to look it can make it much easier for you. You are going to have to be able to back up what you put on your application a bit and this will help you to know what you need to prove.
When you put down a certain amount of income on an application for auto loans for people with bad credit you are going to have to prove it. This means that you have to either use bank statements, tax forms, or paycheck stubs. This means that you have to make sure you can prove the income you really make.
Another thing you have to prove is where you live. This is very typical when you are after auto loans for people with bad credit because they are going to want to know that you are living where you say you are living. You need to make sure you can provide a bill or a piece of mail that will allow you to prove your address.
The 3 Top Places to Get Auto Loans for People with Bad Credit
1. Online
There are many online lenders that you can use like My Auto Loans. These places will either lend you money because you are approved or they will help you find an auto loan that will give you what you need to get the vehicle you want. They will forward your information to the lenders they think will work best with you and they will help you get the money you need to get the vehicle you are after.
2. Your Bank
Sometimes your bank, especially if it is a credit union, will give out auto loans for people with bad credit to those that need them and have a good reputation with the bank. You do not need to let poor credit slow you down and if you have a decent amount of money to put down, then you can certainly get the auto financing you are after.
3. Buy Here Pay Here Dealers
If all else fails the fall back is the buy here pay here dealers. Make sure you find one that is not going to give you a huge payment and also make sure you get a buy here pay here dealer that has some type of warranty for you. It is necessary to find the right vehicle for you and sometimes when your credit is not all that good you have to use one of these types of dealers.
What to Expect from Auto Loans for People with Bad Credit
When you get a car loan and you have horrible credit or just less than perfect credit you have to expect to put a decent amount of money down. You have to make sure you have at least a thousand dollars to get a good car loan and this is considering you get a loan for around $10,000. If you get a larger loan you will need to put more down.
You should expect the interest rate and the term to be larger and longer than most auto financing is. You cannot expect to get the best deal from a dealer because you do have poor credit. It is not always that easy to get a low rate with not so good credit, but you can still get one of the auto loans for people with bad credit.
Interest Only Loan Refinance
Refinancing of interest only loans simply means swapping one loan for another. It is an effective way to decrease the debt on existing loans. This is especially beneficial if the current interest rates are lower than the interest rates you are presently paying on the loan. Refinancing would enable you to convert your high interest debt into a low interest debt, as the amount of monthly payment would decrease. The extra money saved can be reinvested in something more lucrative like real estate or shares, or to pay off high-interest debts like credit cards. Refinancing is also done for converting an adjustable rate mortgage into a fixed rate mortgage. Refinancing has become so common in recent years that almost three quarters of new mortgages were refinanced loans in 2003.
Refinancing of interest only loans is very attractive, especially when the time comes for the loan to get amortized. That means the loan will have to be repaid at the current interest rate, along with the principle. Most people seek to refinance their interest only loan in order to buy more time, i.e. to delay the repayment of the principle further. However, this may also increase the risk on the loan, since the interest rates may go up further, the price of the house may come down or the economy may slump in the future.
Refinancing of interest only loans is ideal for people who are expecting huge capital gains in the next few years or are planning to sell their house by the time the interest-only period is over. This is a good alternative as long as the economy is good, the interest rates are steady and the prices of houses are increasing. Interest only refinancing is recommended for people who have irregular incomes like commissions or bonuses or those who are expecting a hike in their income in the coming years. The savings accrued from refinancing can also be used for home improvement, which will increase the value of the home in the future.
A few questions to be considered while refinancing are: how long do you expect to stay in the house? How much equity do you have in the house? Will you have to pay points for getting a low rate from the refinance? What would be the closing costs? Will the lower payments from the refinance enable you to cover the closing costs, points (if any) and the fees reasonably?
There are several lenders who are offering refinance options for interest only loans. The Internet is a good source for getting information about these offers and also to find out more about interest only loan refinance.