Drive away from ‘Devil’ Bad Credit in your New Car Today

Is Bad Credit the Devil that causes multiple obstacles in your car buying journey? Are you frustrated with constant car loan rejection? If buying a beautiful car is your dream, Fast Auto Loan Approval will not let bad credit ruin it.

Fast Auto Loan Approval – The Savior of People with Credit Issues

The online auto financing company has been serving American car buyers for the past several years. It has ample experience and adequate knowledge of finding you the best bad credit auto loan program.

Fast Auto Loan Approval doesn’t believe in conning innocent car buyers. It provides right information to ensure your total satisfaction. If you are looking for guaranteed auto loan approval, we suggest you to follow a few of the tips mentioned below:

• Manage down payment of at least ten percent of the total price of the car
• Bring a co-signer with good credit score
• Lower debts to reduce the risk
• Choose a low-cost car

Fast Auto Loan Approval is willing to help bad credit car buyers in buying a great car with a good auto loan. Apply now and get respite from bad credit forever.

Time to Celebrate! People with Low Income can buy a Car

In 2014, Americans purchased 16.5 million cars. It means that 45,205 cars were sold in a day. If you look at the astounding number of car sales, you will realize that everyone around you is buying cars. If you want to buy a car but are unable to do so because of your low income, there is no need to take help from a predatory buy-here-pay-here lender. There is hope for you.

Car Ownership Programs - A Silver Lining for People with Low Income

Non-profit organizations have started car ownership programs in the country for fulfilling the car dream of people with low income. If you become eligible for the program, the non-profit organizations will provide a free car or offer a grant for buying a car.

How to buy a Car with a Car Ownership Program?

Buying a car with the help of a car ownership program can be a strenuous task for a novice. In order to make it simple and stress-free, follow the steps mentioned below:

>> Find a non-profit organization that provides car ownership program in your area;

>> Check whether you fulfill the eligibility criteria of the program;

>> Keep your financial documents and bank statements ready; and

>> Write an essay soliciting your need for a car.

What should you do if you get rejected for a Car Ownership Program?

If a non-profit organization rejects your request for obtaining benefits under a car ownership program, do not worry. You can apply with an online auto financing who cater to your needs and offers low income auto loan program.

With the advent of the internet, competition has increased in the auto financing market. And, increased competition has compelled lenders and auto financing companies to open their doors to car buyers with low income.

How to obtain for Low Income Auto Loan Program?

In order to obtain low income auto loan program, follow the tips mentioned below:

1. Make Down Payment

When it comes to buying a car, people with low income take tension of down payment. But, you need not worry about it. There is no need of applying for an outrageous personal loan for managing down payment. Also, there is no need to opt for no down payment auto loan program. You can make use of your savings and put together money for down payment.

Remember that the down payment amount will lower the cost of the price, manifest the lender of your stable financial capacity and reduce interest rates.

2. Improve your Credit Score

Negative information stays on your credit report for several years. But, it does not mean that you have to suffer from bad credit score today. Here are a few tips that can help you improve your credit score and increase your loan approval chances:

1. Check your credit report;

2. Dispute all the errors that you find in the credit report;

3. Make payments and negotiate with creditors to remove the debt from your credit report; and

4. Pay your bills on time to ensure a stable payment history.

3. Get a Co-Signer

Lenders shy away from providing loans to people with low income because they fear the safety of their money. But, if you can manage to find a co-signer, the lender will be sure of getting regular payments. It is because a co-signer has the responsibility of making payments if you fail to do so.

Remember to ask someone with good credit history to become your co-signer because lenders do not accept a co-signer with bad credit history and higher debts.

Obtaining a low income auto loan program can be difficult for a car buyer. But it is important not to lose hope. If you can convince the lender of regular payments, there will be no problem in getting loan approval.

How to know if you can become a Co-Signer?

Help when you can help!

It is true that we must help those who are in need. But, you must remember that you can help others only when you are in a position to help. So, before agreeing to co-sign a car loan contract for a friend, a family member or a colleague, you must understand your financial situation and ascertain whether you are eligible to become a co-signer.

Can I Co-Sign a Car Loan Contract?

Even if you are eager to help someone in buying a car, you should consider the following factors before co-signing a car loan contract:

1. Credit Score

A good credit score is the pre-requisite for becoming a co-signer. If you have a bad credit score because of late payments, missed payments, bankruptcy, etc., lenders will consider you unfit for becoming a co-signer.

2. Debt-to-Income Ratio

Debt-to-income (DTI) ratio manifests the percentage of your gross monthly income that goes towards paying debts. A higher ratio ensures the lender that you have money to make payments if the primary borrower (the person whom you are co-signing for) misses them. So, it is very important to have a good DTI ratio for becoming a co-signer.

3. Future Purchase Plans

If you are thinking of buying a home or a car in the near future, you should not co-sign for a car loan contract. Potential lenders will consider it as your loan and include it in your total debt while calculating debt-to-income (DTI) ratio. It means your DTI ratio will reduce even when you have not actually purchased any new asset. Additionally, it will create a problem for you in opening a new line of credit.

What are the Consequences of Co-signing a Car Loan Contract?

It is a huge financial responsibility to become a co-signer for someone. So, before you make any commitments, it is important to understand the following consequences of co-signing a car loan contract:

1. Responsibility of a Car Loan Contract

When you co-sign a car loan contract, you become responsible for the loan. If the primary borrower dies, loses his job or doesn't make payments, you will be required to pay the total loan amount as well as the late payments fees that are charged by the lender.

2. Responsibility of Regular Payments

It is not mandatory for the lender to contact you and provide information about missed payments. But it is your responsibility to ensure that regular monthly payments are made to the lender.

3. Impact on Credit Reports

Many individuals ignore the impact that co-signing has on their credit reports. You must remember that the car loan contract will not only be visible on the primary borrower's credit report, but it will also appear on your credit report. Additionally, if the primary borrower does not make regular payments, it will affect your credit score negatively.

Bottom Line

Do not be in a hurry to help your friend or family member in buying a car. If you make a hasty decision of signing on the dotted line, you will end up ruining your credit score as well as your financial stability. So, understand your financial health and know your responsibilities as a co-signer to make an informed decision.