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How to qualify for a bad credit auto loan
Just because you happen to be in a situation where you are plagued by bad credit doesnt think for a second that you are going to be unable to get yourself a bad credit auto loan. Whether you have bad credit or no credit at all, there is a financial market out there that caters to individuals such as yourself that will be able to provide you with the solution to your problem.
There are a couple of different ways that you can go about getting yourself a bad credit auto loan but it all comes down to a few key insights into knowing exactly what your potential is going to be looking for. Some of the things that people overlook but matter quite a bit are their current income, what type of income they may have in the future as well as the overall picture of what their financial situation looks like. While it is certainly one of the most important factors, your credit score is absolutely not the end all be all factor when it comes to getting a good deal on a bad credit car loan.
The reality is that each different lender out there is taking a gamble on any potential car loan that they provide to a consumer. In their frame of mind it’s more along the lines of the higher the risk that they are taking, the more that they can profit off of it. Having bad credit naturally means that you are going to be considered a higher risk. By providing them additional profit or some sort of reduction to the risk that they are taking is going to give you exactly what you desire.
There are different things that you can do to take advantage of this such as offering to pay a higher interest rate over the duration of the loan for example. Having a decent income will go a long way in convincing a potential lender that you are a risk that is not only worth taking, but profitable at that. Almost any lender will jump at the opportunity at providing you with a bad credit auto loan as long as you are capable of paying the monthly payments on time each and every month.
So clearly, having a bad credit score is not going to mean you are not going to be able to get anywhere. As long as you are in a position to provide them with the profit that they desire, any potential bad credit car loan lender will be at your disposal. If you are capable of providing proof that you are in a position to pay your monthly payments on time each month, then your bad credit score will more than likely be ignored by them.
Another great way for you to get yourself a bad credit car loan without having to pay application and processing fees is by utilizing our website. We have compiled a great list of bad credit auto loan providers that have proven to be most helpful to many individuals throughout the years. Simply fill out the short form and you will be on your way to getting the car of your dreams.
How To Protect Yourself From Pre-Approved Credit Card Offer?
Have you received before a pre-approved credit card offer that sent to you through your email address? If you are not, then you are the lucky one. Most of people who have access to email are receiving dozens of “good offer” from credit card companies. Low-internet rate and higher credit limit are among the good deals in the offers and the best part is: it has been pre-approved to you. Sound good? Well, before you go ahead and accept one. Ask yourself whether you really need it or not. According to the credit card site CardWeb.com, average American household are holding a $10,000 credit card debt. Don’t let you be one of the statistics.
The best way to keep credit card debt down is not to use a credit card. But if you do receive a pre-approved card that intrigues you, at least know what you are getting into before signing on the bottom line:
What interest are you paying? Make sure you understand the interest rate you will be paying for. There are two types of interest rates, fixed-rate annual percentage rate (APR) and variable rates that swing according to the market rate. A better option would be APR because credit card companies have to notify you before raising rates.
The low interest rate being offered is usually only an “introductory rate” which means the rate can – and probably will – increase significantly at the end of the introductory period. This means that balances transferred from higher interest rate credit cards to the new, low introductory rate card could, over the long run, actually cost you more in interest payments. So, be aware of the terms and conditions before you sign to accept the card.
Know that a credit card may carry more than one rate. You may not aware that most of credit cards carry more than one rate. The balance transfer and cash advance normally have higher interest rate. Interest rate shows in the offer normally is the interest rate of your purchases with credit card. Hence, at the end you probably pay higher interest rate if you have balance transfer or withdraw any cash advance with your credit card.
Credit card companies may raise the interest rate if you have late payment. Some credit card companies will immediately raise your interest rate from introductory teaser rate to the regular rate if you are late just one time.
Don’t accept the new credit card offer if fee involved. If there is fee involved with your new credit card, don’t accept the offer. Why pay a fee for a credit card when, with good credit, you don’t have to? If you have good credit, there are many other better offers which you can choose from.
Many of these cards are just preliminarily approved. This means that when you actually apply, the credit card company will reviewing your credit report in full as well as verifying information provided on your application. Terms and conditions may change according to your qualification, such as higher interest rate or smaller credit line. And if your application is rejected, it could cause at least minimal damage to your credit report.
So, in order to protect yourself, you need to carefully read all of the fine print in the offer and, if you don’t fully understand and like everything you read, throw the credit card offer away. Even if you fully agree with the stated terms and conditions, do some calculations to be sure that the lower introductory rate, especially in the case of balance transfers, will actually save you money over the long run.