Friday, September 22, 2017
Everyone with a bad credit score knows well that Murphy’s Law acts a major obstacle while buying a car. Everything that can go wrong will go wrong. And, the main reason behind it is the terrible credit score. Lenders will reject your loan application. And, if anyone offers you an auto loan, you will have to suffer with high interest rates. So, what should a bad credit car buyer do? Refrain from buying a car for his entire life? Are loan sharks the only resort for making a car purchase with bad credit?
With the increase in online auto financing company, the competition among lenders has increased. It has led to easy availability of second chance auto loans. The loan program is ideal for car buyers with credit issues. So, if you are in bankruptcy, or you have a subprime credit score, do not worry. There are a few lenders out there, who can help you make a fast car purchase.
The number of lenders offering second chance auto loans has increased. But, if the lender doesn’t find you financially stable, your auto loan may get rejected. So, learn two important tips for getting the loan. It will help you to buy the car and improve your credit score as well. Get ready to seal the deal.
Most car buyers do not report their total income to the IRS. It may help you to save money on your tax. But, remember that if you do not report your income, it will not reflect in your yearly income statements. Lenders consider your income listed on W-2 form or they go for the tax returns to check it. So, even if your bank records show the additional income, lenders will not consider it for calculating your debt to income ratio. It can prove to be negative for you as low income and bad credit are the two things that lenders try to stay away from.
When you credit score is below prime, you need to be ready for high interest rates. Lenders will consider your loan application risky and demand high interest rates for it. But, high interest rates do not mean that you have to keep making huge monthly payments for the loan term. Choose an affordable car, preferably a used car, to lower the total cost. You can even think of buying a demo car or a discontinued car model to reduce the price. Remember that second chance auto loans can be your ticket to better interest rates if you make regular monthly payments. So, stay in budget and compromise on an affordable car.
When you are applying for a second chance auto loan, you need to focus on two things: 1) Your income and 2) Your expenses i.e. your car budget. By maximizing your income and presenting a clear picture of your financials, the lender will be able to understand your situation in a better way. Also, it will give you a perspective on choosing a car within your budget.
Take time in understanding your financial situation and make a practical choice. Remember second chance auto loans can buy you a car as well as pull you out of the abyss of bad credit score. So, next time, you seek auto financing company for buying a car, work out the details to get the best deal.
FastAutoLoanApproval.com is your go-to option for buying a car with bad credit. The bad credit auto financing company will help you in making a car purchase with affordable financing. Seek approval on second chance auto loans and get ready to paint the town red in your car.
Is this your first car buying experience? Buying a car means deciding on the budget, choosing a car amongst several different alternatives and working with different lenders to find the best deal. If you do not prepare for buying your first car, it can turn into a confusing, irritating and expensive experience. When people realize that you are buying your first car, they may try to take advantage of your ignorance. Do not fall for common car buying myths. Instead, follow the following time-tested advice; you will come out as a winner.
Time-Tested Advice for buying your First Car
1. Myth – First Time Car Buyers have no Credit History.
Advice – Check your credit score every time you decide to seek credit. Usually, first time car buyers are young college-goers or recent graduates. And, it is for the same reason they believe that they have a non-existing credit history. However, department store cards or small purchases on credit cards can add to your credit score. It is always better to know your financial situation before finalizing a car. Otherwise, a lender may dupe you into accepting high interest rates. So, do not play blind and check your credit score.
2. Myth – First Time Car Buyers have to buy a Used Car.
Advice – It is not set in stone. You can buy any car you wish to buy. Auto manufacturers such as GM provide special College Discount Program to help you buy a car. If you have additional money or you can afford to make slightly higher payments, a new car can be your choice. Think of a discontinued car model or choose a demo car if you want to buy a new car with a limited budget. No matter the car you choose, make sure that you read its reviews online. Take it for test drive and check whether you feel comfortable behind the wheels.
3. Myth – You cannot buy a Car on your own.
Advice – Young car buyer with zero credit history often rely on parents to buy a car. Usually, parents spend money on down payment and/or cosign the loan agreement. But, there are many buyers who may not know anyone with substantial savings to make down payment. And, others may not have anyone with a good credit score to become a cosigner. Do not panic. You can still buy a car. Online auto financing companies customize credit programs to offer no cosigner car loans and zero money down car loans. You can apply for either of them to make a rapid purchase.
4. Myth – A Part-Time Income cannot get you a Car.
Advice – Income is not the criterion for getting approval on your first car loan. Do not worry if you earn a part-time income. Lenders give more weightage to debt-to-income ratio rather than the amount of your gross monthly income. You can apply for first time car buyers’ program. If you are in college and manage a part-time job, do not worry. If the gross monthly income is below $2000, your chances of approval can be improved with a cosigner and a down payment. Use your savings and cash gifts to manage a down payment. In times of a limited income, you will have to depend on your parents as well.
When you are buying your first car, your mind will be full of doubts. But, by debunking the myths and obtaining time-tested advice, you will be able to make a successful car purchase. So, whenever you are ready to take the plunge, follow the advice and become a stress-free car owner.
Monday, July 31, 2017
Lego blocks teach you to build anything from nothing. Similarly, if you have a zero credit score, you can build a good credit score from it. You have to take one step at a time because building a credit score doesn’t happen overnight.
Zero credit auto loans provide you with the opportunity to build your credit score on a strong foundation. But, you might face a challenge in getting approval for the auto loan. The reason is that the lenders take into account your credit score as an indication of your ability to make regular payments. But when you have a zero credit history, the lenders have no parameter to judge you and so they consider you as a risky borrower.
What problems will you face if you do not build a good credit score? You will be unable to get approval on your loan applications. And, if any lender approves you, he will charge high interest rates. Today it is just a car, but when you have to make bigger purchases, you will require a good credit score to enjoy low interest rates. So, it is wise to start building your credit score as early as possible.
Aim the Arrow Right to get Zero Credit Auto Loans
Don’t just sit at home and assume you won’t qualify for the auto loan with a zero credit score. Take a step forward. Make a list of potential lenders who consider borrowers with zero credit score. As it is your first loan, ask questions about the financing procedure. Pay your bills on time and manifest regularity. With a good repayment behavior, the lender will grant you approval. A co-signer will help you to qualify for the auto loan because he will be equally responsible for it.
You can also save money for the down payment. Your chances of getting approval will increase when you make a higher down payment. And, do not forget to shop at multiple dealerships in order to find the best deal.
Zero Credit Auto Loans: The Building Blocks of your Credit Score
The first question is: How can an auto loan help in building the credit score? When you have a zero credit history, it is easier to build your credit score. It takes a little effort in making timely payments, keeping your debt low and monitoring your credit score on a regular basis. Moreover, there are many lenders available in the car market to provide you with auto loans. You will be able to get the convenience of the car and a chance to build your credit score. Keep in mind the following things to build it:
Be punctual. Your regularity in making the auto loan payments will be fruitful in building your credit score.
Plan a budget. As it is your first loan, plan the household expenses and keep aside the monthly payment. It will make the repayment process of the loan easier.
Make sure that the lender reports your payment behavior to the credit bureau. It will help you in building a good credit score.
With all the Lego blocks in your hand, start building your credit score! Remember nothing comes in handy. You have to get moving and aim at getting the approval for zero credit auto loans. Keep a check on your expenses and make regular payments towards your loan. Building a credit score seems easy but it turns out to be a toughie when you start it. But, with a strong determination and hope, tomorrow will bring you a good credit score.
Getting a zero credit auto loan is easy when you work with FastAutoLoanApproval.com. Work with the online auto financing company and build a stellar credit score in no time. Apply now for zero credit auto loans and get ready to buy a car on your own.
There is nothing more frustrating than falling in love with a car at a dealership only to be told that you don’t qualify for financing because your credit score is not good enough. However, for many people across the country, public transit isn’t an option, and a personal automobile is their only means of transportation between home and work. Several professionals require personal transportation as a part of their job duties. For them, a car can be the difference between making money and having no money at all. In such cases, a bad credit auto loan becomes absolutely necessary.
Like everything else, “bad” is a matter of opinion and degree. Bad credit history doesn’t mean you cannot buy a car or you cannot get an auto loan. It is possible to get financing for a car. But bad credit history will affect the way a bank or lender sees you.
If a person has bad credit score, they need to walk into the financing process knowing that they are going to pay a higher rate than others. There are auto loans for people with bad credit. But, you need to be careful when shopping for one to make sure the lender doesn’t overcharge you. Let’s break down the art of getting bad credit auto loans.
Make Adjustments to get approved
A bad credit auto loan, sometimes called a second chance car loan is simply a regular auto loan with some adjustments based on your credit score. Usually, the major adjustment between a traditional auto loan and a bad credit auto loan is the interest rate. As your credit score decreases, lenders tend to charge a higher interest rate for auto loans.
Lenders use credit scores as predictors of the likelihood of a person making their payments on time. Since lenders take greater risk of lending money to people with lower credit scores, it makes sense that they charge more money to cover the risk of nonpayment. A history of late payments, high debt, bankruptcy, or repossession is a sign to the lender that you’re at risk of evading your loan payments. With bad credit history, it's important to understand that your options are limited; there are no attractive solutions, but there might be acceptable solutions.
Lower your Expectations
If you have bad credit history, it’s important to be prepared. Preparation and knowledge can save you money. Following are the strategies to help you find the best bad credit auto loan:
A No-Frills Car
Because you can expect to pay a much higher APR with a bad credit auto loan, you don’t want to purchase an automobile that is either larger or includes more amenities than is absolutely necessary for your day-to-day travel. Determining the exact nature of the car before you head to the dealership will ensure that you aren’t pressured into a purchase that will only worsen your financial situation.
A budget should be at the forefront of your planning when making any large purchase, especially one involving long-term financing and monthly payments. It’s a good idea to get an insurance price quote as a part of your vehicle budget. Remember that anything more than what you were planning to pay could end up costing a lot in the long term.
A No-Frills Purchase
It can seem like an intimidating proposition to some, but if you do research, you should know both what a car is worth and what you’re going to pay. If the vehicle is out of your price range, do what you can do to make it affordable. If it’s already in your range, try to get it for a lower price. Because of your bad credit score, you most likely won’t be able to negotiate the terms of your auto loan, but you can always try to negotiate the purchase price. Also, do not spend additional money on accessories that you do not need. The salesman may try to lure with extended warranties and dealer add-ons. Any money that you can save now will help you in the long run.
Make a Smart Car Buying Decision
You know your financial situation and your needs better than anyone. Conduct thorough research of different car options and auto loan programs. If you are unsure, ask questions. And if you don’t feel comfortable for any reason, don’t sign the contract. If you are okay with everything, make sure that you have a copy before leaving the dealership.
It is far easier to get a decent auto loan with bad credit than mortgages. It is because the cost of a car is smaller than the cost of a home. But, you have to remain cautious and avoid making an expensive purchase. Do not give into the temptation of buying an expensive car model. Remember that research, prudence and a no-frills car purchase will make your life simple.
Sunday, June 18, 2017
Life is a journey! And, buying a car will make your journey easier. Nevertheless, before you buy a car, selecting the right loan term is important. If you choose a short-term auto loan, you will have to repay the loan over a short period. The term varies between one to three years. On the other hand, a long-term auto loan has additional time for repayment. The term varies between three to nine years. It is good to know the pros and cons of the auto loan term before you sign the contract. Take time for making comparisons and make the decision process a little easier. It is essential because you have think about the big picture.
Short-Term Auto Loan - Pay more for a Short Period
Pay up Faster and Make Way for your Dream Car
Buying a new car is a costly purchase. You need an auto loan to pay for the price of the car. Short-term auto loans usually have a lower annual percentage rate. Remember, the shorter term the better it is for you. Short term guarantees you lower interest rates and higher monthly payments than a longer loan term. It means you will pay up the auto loan with a low rate of interest. There are several benefits of opting for a shorter loan term such as:
- You can enjoy low interest rates.
- You can get out of the auto loan debt in a short period.
- The biggest benefit is that it helps in freeing up your money quickly!
- It feels expensive at first, but with low interest rates, it will not hurt your financial situation.
- The car will have a higher re-sale value when you pay off the auto loan quickly.
- It can aid in improving your credit score.
As a car buyer, remember that a short-term auto loan offers you multiple advantages only when you make large monthly payments. In addition, you will have to do everything to reduce the loan amount. It will ensure that the monthly payments do not become a burden for you. Consider, making a large down payment to the lender. Also, remember to plan your expenses because auto loan payments will take an important chunk of your income and you will not be able to save money for the next couple of months.
Long-Term Auto Loan lets you buy an Expensive car
If you are thinking of buying a luxurious car, a long-term auto loan will be a good option for you. It is possible to afford the car expenses because monthly payments are low. The lenders will offer you affordable monthly payments in return of high interest rates. It means you can even buy a car outside your price range. Many car buyers opt for a long-term auto loan because:
- It offers low monthly payments.
- A car buyer with low income can afford a car easily.
- It is ideal if you want to buy a luxurious car.
- Regular monthly payments can increase your credit score.
However, you must remember that long-term auto loan stretches the monthly payments for a long time. In addition, you will have to cough up high interest rates to enjoy a longer loan term. Another problem is that you can be an upside down situation for a larger part of the term. It is a very risky situation because if the car breaks down, you will find it very difficult to buy a new one.
When in Great Confusion, Read the Conclusion!
There is no perfect auto loan term. As everyone has different income levels and repayment capacity, there is no one perfect loan term. When the lender offers you an auto loan term, do not be in a hurry. Determine the monthly payment that suits your household budget. Consider your future expenses. Think of major expenses such as a wedding, college fees, buying a house, etc. Pick the auto loan term accordingly. Remember, life is too short for making monthly payments for a very long time. Therefore, it is important to think hard before you make the right decision.
Saturday, June 10, 2017
Your car represents your quality of life. But, when you have a bad credit score, you find it difficult to buy the car. You may have to settle down for a lower model of your dream car. But, do not feel sad. Don’t wait for the right time, fight your bad credit score now and earn your dream car.
Life is way too short for a bad credit score
Let your car dreams soar!
Let your car dreams soar!
There are smaller things in life you never really care to enquire about. And why would you? There is so much going on in the world. Especially when you want to buy a car, you are so occupied with the selection of the car’s model; your eye gives credit score a miss. Don’t ignore your credit score because it might be the only reason you still don’t own the car. Start to improve your credit score today and earn your dream car!
It is not a perfect world in which you can easily buy your dream car with cash. You need an auto loan to buy a car. Your credit score will ascertain your chances of getting an auto loan. A bad credit score may pose as a challenge but do not worry. It is a temporary issue. Don’t put your car dreams at rest. Allow it to soar.
If Not Now, When?
Your credit score is important. And you may not notice how much a bad credit score can affect your dreams until it’s too late. Don’t wait for the time to teach you the importance of credit score.
The sooner you begin fixing your credit score, the better it will be for you. So get your plan together and get to work. It will take some time and effort but having a good credit score is now possible.
Check your Credit Reports
Check your credit reports with all the major credit bureaus. It will enable you to see any errors which might prevent the lender from giving you the best interest rates. If you spot any error, dispute it and have the item removed from your credit report.
Stick to your Budget
Work out the math. You know what you make and how much it costs to keep up with your regular bills and expenses. You also need to set aside money for making regular payments towards your auto loan. Making late payments can hurt your credit score. Reduce expenses so that you do not have any problems in managing the auto loan.
Use Credit to build Credit
The best way to build a good credit score is to apply for an auto loan and pay it back on time. Purchase your next vehicle with the help of a bad credit auto loan. There are special lenders who look at factors beyond your credit score in order to approve your auto loan request. Once you buy your car, you can make timely payments to boost your credit score.
Remember that your credit score needs time to improve. So, it is better to get started now. Let today be the day to fight your bad credit score. With time, your credit score will heal and you will be the owner of your dream car.
Fast Auto Loan Approval is the perfect auto financing company for buying your dream car. Allow us to help you improve your bad credit score and get ready for quick bad credit no money down auto loans. ! for low rate auto loan
While planning to buy a car, you must have come across the terms: ‘Cost of buying a car’ and ‘annual cost of ownership of car’. Let's understand the difference between the two terms.
Cost of Buying a Car: Buying a car means you pay a sum of money for the retail price of the car in order to purchase it. It is also called the MSRP (Manufacturer’s Suggested Retail Price) that you have to pay to the dealer after negotiations.
Annual Cost of Ownership of Car: It means the amount that you need to pay for the car during a year. The cost of owning a car includes the cost of fuel, depreciation, service, maintenance, etc.
Let’s look at some of the aspects of the annual cost of ownership of car. According to a comprehensive AAA report, the annual cost of ownership of car is more than $8,500. Do you believe it is too big a number for keeping the car running? Well, here are different aspects that contribute to it:
Service and Maintenance: The service and maintenance cost of the car depends on the manufacturer and the warranty policy. The rest depends on how you use it. On an average, the yearly service and maintenance cost sums up to $914 including the cost of tires.
Fuel: Considering that the car travels an average distance of 12000 miles in a year, the fuel price may range up to $1682 for one year.
Insurance: The insurance payments are constant and you can calculate the cost for the same easily. On an average, the insurance amount is $1115 per year.
Depreciation: The depreciation rate of a car depends on the purchase price of the car, its current age and its life span. If you use a car to travel a distance of 15000 miles, with normal wear and tear, the depreciation amount will be $3655 per year.
Other Costs: Finance charges and fees related to license, registration and taxes cost around $1334 per year. Car buyers often ignore the registration fees and charges. But, in reality, such costs contribute heavily to the cost of ownership of car.
Additional Costs: Accessories that you install after the purchase of the car contribute to the expenditure. Also, parking tickets contribute to the overhead charges. The parking tickets may cost you a lot more than you can imagine. Plus, if you live in a metropolitan such as New York City, you will have to pay an additional charge for the parking space.
The annual cost of ownership of car shows you how much you need to save for a car. Buying a car is a big responsibility. Plan well and make judicious decisions so that the car doesn’t become a burden for you.
When you want to buy a car, it is not just the car in question but you also have to consider the auto loan. Getting an auto loan is the first step towards buying a new car. But, you might end up with a high interest rate on your auto loan if you choose the conventional way of shopping. When you visit a dealership as a borrower, the dealer will compel you to sign up for the loan and you may compromise because of lack of alternatives.
The Internet: A Faithful Friend
The internet has revolutionized the way we shop. People prefer online shopping over conventional shopping. Convenience is the biggest perk of online shopping. It gives you an opportunity to shop 24/7. With the help of the internet, you can shop for an auto loan in your pajamas! You will be able to enjoy astonishing choices. Also, you will get benefits such as cheap deals and better prices from different lenders all in one place.
The Convenient Way of Shopping
With new advancements to make our lives convenient, the internet has come a long way. Internet security has become strong and the process to apply for an auto loan online is safer than ever. Yet, some people are still reluctant to use the internet to apply for an auto loan. Online application form is quick and easy to complete, but always be aware of the security features of the website. Understand the safety protocols of online security and you are good to go! If you are still in doubt, the following points will help you make the leap. Consider them and applying for an auto loan online will be easy for you!
Know the Privacy Guidelines
When you are choosing to apply for an auto loan online, be sure to verify that the financing company follows the latest security and privacy guidelines. You will find the guidelines on the company’s ‘Privacy’ or the ‘FAQ’ page. The company should keep your personal information private and not sell it to any other website. If the company assures you of secrecy, go ahead with the secure auto loan application form.
Page Security Protocol
Before you make your mind to apply for an auto loan online, review the website’s security protocols. Is the website safe for making an application? You should be able to enter your personal information on a ‘secure page’. A secure page has an additional layer of security which regular web pages do not offer. It encrypts your information before sending it to another website on the internet.
You will know you are entering information on a secure page when you see the clickable image of a lock in the address bar of the web browser. If you click on the lock icon, you will be able to learn everything about the security of the web page. Other hints include the “https://” prefix to the web address. Remember the two quick checks because they will allow you to verify the company’s claims about security and privacy.
1. Check the online reputation of the company’s website before are applying for an auto loan. Is the website FastAutoLoanApproval.com legitimate? Does it provide fast approval? Does it reply to the grievances on time? It is important to get straight answers.
2. Read the online reviews of the borrowers to know their auto loan experience with the company. Are they satisfied with the programs available with the company? Did it charge additional fees from the borrowers? Consider the experience of different people to get a better idea of the situation.
3. Keep all access codes, passwords and PIN codes secret. Writing the numbers and codes in a book is borrowing trouble. So try really hard to protect them from unwarranted access.
Applying for an auto loan online offers you better interest rates and quick approval. So, why not take advantage of it? Do yourself a favour and give plenty of time to shop for the best auto loan online. Browse through various auto loan programs which are available to you. Apply online with the help of the safety tips and buy your favourite car easily.
Thursday, June 8, 2017
Do you remember the time when you had bought your first car? Deciding a car was one difficult thing while getting loan at nominal interest rates seemed even more difficult.
So what has changed in the recent years? What has made us so lazy yet so smart? The answer is technology! Global access to internet and widespread sharing of information has helped us reach the present stage of virtual awareness. You may not physically touch a car but you can know about each and every bolt of the car. You can compare them easily with the help of technology.
In the same way, obtaining auto loans has become a piece of cake. Thanks to the rising use of technology, applying for online auto loan is possible without even moving a single inch from your seat.
How can Technology serve you in applying for an Auto Loan?
According to Interactive Advertising Bureau, 58% of the population regularly researches for a product on internet before buying it. It is a true example of digital awareness among the buyers. If you are applying for an auto loan, look how technology comes to your rescue and helps you save your hard-earned money in the process.
Scan your certificates and identifications along with your signature and save it to an e-vault. Uploading your personal information can help you save a lot of your effort, time and money. Whenever you need them, you can log in the system and retrieve them quickly. It makes applying for auto loans easier. Whenever you want to get auto loans, you need to submit your e-documents without having to refer to your original documents.
Comparison and Calculations
Previously, you had to understand each and every term of the auto loan contract and manually check the interest rates. However, things are different now. You need not waste hours calculating the monthly payments. The internet does it for you within a couple of seconds.
Also, the traditional rule of applying for an auto loan with the dealer is out of the window. The merit of borrowing auto loan over the internet is that you can borrow it from any lender you like. Also, comparing various offers has become easy because of technology.
Time is valuable. In the old days, you had to fix a meeting with the lender and visit his office. Also, you had to negotiate in order to get the best interest rates for your auto loan. While technology has made it possible for you to obtain a loan, it has also made you the owner of your time. There are no time boundaries for applying with the lender. Whether it is night or day, you can apply for an auto loan and get approved.
Technology has made the once 'unimaginable' a reality. Today, car buyers are conducting thorough research before making any kind of purchase. It is the reason behind many businesses opening an online store. Technology offers you great comfort and ample choice. So why not use it to save your valuable time, effort and money? Apply for an auto loan with the help of technology and buy your new car.
If you have ever purchased a car, you know quite well the importance of a good credit score. Primarily, a credit score assists a dealer is assessing your financial strength. It is a means of knowing if you will be able to repay the amount that you wish to borrow. However, not everyone has a stellar credit score. Over time, a bad credit score can cost you additional cash in terms of high interest rates on auto loans. Fortunately, it will not weigh you down throughout your life. One of the few options to ease your burden includes seeking help of a reputable credit repair company to fix your problem.
Credit Repair Services: Are they worth your Time and Money?
Getting in touch with a credit repair company may seem far-fetched to you. But, it can aid you in getting an auto loan. The following questions will clarify the process of hiring credit repair services.
1) What are Credit Repair Services?
Typically, credit repair services help you in fixing your credit score for a fee. A credit score can go bad due to numerous reasons. The services help you to identify and dispute inaccurate, unverifiable and false errors that are damaging your score. Some unidentified errors that credit repair services fix are repetition of items in the report, false information and absolute inaccuracies.
Once the company spots the errors in your credit report, it will communicate with the credit bureaus and rectify the mistakes. After the required correction, the new credit score will help you to obtain a cheaper auto loan.
2) How can Credit Repair Services help in Obtaining an Auto Loan?
Obtaining approval on an auto loan becomes easier due to credit repair services in the following ways:
- Correct Credit Score:
A good credit score instills a sense of credit worthiness in the dealer. Individuals with higher credit scores are considered less risky as there is a greater probability of timely payments. Therefore, a credit repair service will not only help you in identifying false information on your credit reports but also assist you in getting guaranteed approval on your auto loan.
- Quick Error Discovery:
Credit repair services work with authorized national credit bureaus. So, it helps you in correcting errors within 30 days of submitting a dispute. The short time span of rectifying a credit score can help you to bring your score back to normal before applying for an auto loan. Thus, with the help of a professional, you do not need to wait for a long time to build a good credit score in order to obtain an auto loan.
- Appropriate Interest Rates:
Damaged credit score brings higher interest rates that cost you more than you would normally pay. Improving your score can help you in presenting a better financial picture to your dealer. A rectified credit score will help you in bargaining for the best deal.
When you are in the process of fixing your credit score, be clear and concise in the process of submitting accurate documentation. While credit repair services can help you in fixing your credit score to a great extent, you cannot correct credit mistakes. However, rectification of any genuine errors will surely increase your credit score and help you in attaining an auto loan.
Wednesday, June 7, 2017
You have one life, play it safe and you won’t regret!
What is Debt-to-Income Ratio?
Many people think that their good credit score will get them approval on the auto loan. But, while a person’s credit score is important, the lender also considers the debt-to-income ratio. If you don’t like playing it safe which means your monthly expenses or debt obligations exceed the amount you earn, the lender may not approve your auto loan application.
The debt-to-income ratio, also known as DTI, refers to how much debt you have in comparison to your income. It is an important number for lenders because it helps them to determine your ability to pay back debts. The simple fact is that a good DTI also has a huge impact on getting you guaranteed auto loan approval.
How to calculate DTI?
The DTI ratio is a percentage and it is comprised of the total minimum monthly debt divided by the gross monthly income. The total minimum monthly debt is made up of minimum monthly payments for auto loans, student loans, credit card debt, mortgages, and any other recurring debt that you might have.
For example, if you pay $1,500 a month for your mortgage, $100 every month for an auto loan and $400 per month for the rest of your debts, you pay a total of $2,000 per month toward debts. If your gross monthly income is $6,000, then the DTI ratio is 33%.
Rule of Thumb
The lower the DTI, the better it is for you. The higher the DTI, the more likely you are to struggle to make your monthly auto loan payments. You’ll want to lower the DTI ratio not only to qualify for the auto loan, but also to ensure that you’re able to make the monthly payments tension-free.
What if the DTI isn’t to your liking?
You’ve got two options, both of which are easier said than done. Your first option is to increase your income so you have more money to work with. Your second option is to reduce your debts to enable your existing income to go further. For the second option, focus on paying off your current debt and avoid taking on additional debts.
Types of DTI
There are two types of debt-to-income ratios that lenders look at:
§ Front-End DTI Ratio, which shows how much of your income goes toward expenses.
§ Back-End DTI Ratio, which shows how much of your income goes toward expenses as well as your monthly debt obligations.
So, which one matters the most?
Ideally, both the DTI ratios should be as low as possible. A lower DTI will complement your credit score and allow you to get a lower interest rate on auto loan.
Tuesday, October 18, 2016
Every person borrows money on credit. A loan on your name marks your progress. It also shows your appetite towards a luxurious life. Thanks to the lenders, borrowing money for a new car isn't difficult at all.
Although, what bothers people are the interest rates that the lenders charge. The interest rates are inversely proportional to your credit rating. It means the higher your credit score; lower will be the interest rate on the auto loan.
What are the Benefits of obtaining Low Interest Rates on Auto Loans?
Let’s understand how low interest rates on auto loans can leave you tension-free and make your life pleasurable.
· You can buy Expensive Cars
You can buy expensive and luxurious cars without any worry. The reason is simple. As you get low interest rates, you need not take tension of a large down payment in order to minimize the loan amount.
So, you need not to worry about saving up too much money for the down payment. Just pay a nominal amount and obtain an auto loan for the remaining amount.
· You won't end up paying more Money
Let’s take an example to understand the number game easily.
For a loan of $10,000, with an interest rate of 15% for 10 years, you pay a total amount of $19,360.19. It means you pay more than $9000 in the form of interest. If the interest rate reduces to 6%, the total amount will come down to $13,322.46.
It is simple to understand how the total payable amount differs with a simple change in the interest rates. Hence, become a credible and punctual credit borrower. In return, you will be able to enjoy low interest rates on your next loan.
· Lenders will trust you
Every company values a genuine customer. If you make payments regularly, you will never face any difficulty in getting an auto loan. Lenders will stay in touch with you and provide you with special discounts as well as cash benefits for buying a car.
Your punctuality will earn you respect and trust of lenders. They will understand your situation and provide you with other benefits such as relaxed lending terms, higher LTV ratio, etc.
· You can apply for Multiple Loans
The best thing about low interest rates is that you can apply for multiple auto loans without any tension. Whenever you feel like buying a new car for your family member, you will have no problem in getting approval from a lender. Also, you will be able to make the purchase at affordable rates.
Nobody likes to borrow less money and pay more in the form of interest amount. So your priority should be to lower the interest rates. And, here’s how you can achieve your goal:
1) Always keep a check on your credit score – It is a crucial measure for lenders that enables them to judge your credibility.
2) Convey your sincerity - Be confident when you face the lenders. Also, try to convey your sincerity by explaining your plan of making regular payments.
3) Never miss payments – Making payments on time is the key to become a good credit borrower.
4) Be on the move- Your credit behavior determines your growth. So, apply for multiple loans, make payments regularly and do not let your bank account sit idle.
5) Do you have a low FICO score? – You should start by applying for an auto loan of a smaller amount. Repay it on time, build your credibility and carefully nurture your credit score. Make payments regularly and improve your credit ratings. In return you'll be able to enjoy low interest rates on your next auto loan.
Considering the interest rates is a very important aspect of the car buying process. Remember that low interest rates on auto loans can make your life pleasurable. So, strive hard to convince the lender and ensure that you he provides you with a better deal.
When it comes to obtaining low rates on auto loans, choose the reputed auto financing company of Fast Auto Loan Approval. It has a record of providing easy auto loans to people with low-income. Apply now to enjoy buying a car without down payment.
Sunday, September 25, 2016
“It’s not about the destination; it’s about the journey”
When you walk out of the house to buy the car of your dreams, it is better to plan out your journey. Discover the options from where you can make the purchase. You can either buy a used car from a private seller or a new car from a dealer. You can even choose the dealer for buying a certified pre-owned car to ensure its quality.
How can a Dealer help you in finding a Car?
A dealer can be a pillar of strength in your quest of buying a car. You can enjoy many benefits by choosing a dealer. Let us have a look at some of the benefits provided by him:
>>When you opt for a licensed dealer, he will do all the legwork of obtaining the title for your car.
>>He will provide you with a statutory warranty that you cannot obtain from a private seller. In addition, he will also assist you with extended warranties.
>> He is considered as a one-stop shop for buying a car because he not only sells cars but also helps you with the auto loan and insurance part of the deal.
>>He is a car-expert. And, he can suggest you a model that suits your needs and budget.
>>He even offers maintenance facilities to keep your car running smoothly long after you have taken the delivery.
“Beware of little expenses. A small leak will sink a great ship.”
The famous saying by Benjamin Franklin is true when you are buying a car from a dealer. Dealers employ experienced salespeople who have a bag of tricks designed to increase the profit. If you are not aware of the tricks, you will end up paying more for the purchase. Here are a few things that you should consider before visiting a dealer’s lot:
1. Do not be a Clueless Car Shopper
A dealer loves having a clueless car shopper. When you are not aware of what the price of the car should be, you will be unable to negotiate it with the dealer. So, it is advisable to find the average price of the car that you want to buy and then visit the dealer.
2. Be Wise, Cost-Wise
Take a careful look at the cost. A dealer boosts his profits by selling all sorts of accessories and add-ons. Such things increase the total cost of the car. So make a wise decision of avoiding them. And, if you are interested in buying add-ons, you can get the same things for a lesser price outside the dealer’s lot.
3. Confirm the Car
Sometimes, he advertises a car with a great price, but when you show up at the lot, he informs you that it is out of stock. Then, he tries to sell you an expensive vehicle. In such a case, call the dealer prior to visiting and confirm the availability of the car that you wish to buy.
4. Avoid the Errors
Errors in the paperwork are very common and the irony is that they are always beneficial to the dealer. So make sure that you review the paperwork thoroughly before you sign the dotted line.
If you want to make your car buying journey successful, you have to be cautious while buying a car. It is necessary to research and obtain facts before making a decision. But, it doesn’t mean you have to be suspicious of everything that the dealer says. Remember that when he sells a car, he is putting his reputation on the line. So, the last thing he wants is an unhappy customer.