Think Long Term before you decide on your Auto Loan Term

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.

Fight Bad Credit Score to Drive your Dream Car

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!

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. Apply Now for low rate auto loan!

Annual Cost of Car Ownership that Car Buyers often overlook

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.

Be Safe while Applying for Auto Loans Online

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.

Other Measures

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.

Applying for Auto Loans? Technology comes to Rescue

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.

E-Documents

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.

Flexibility

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.

Fast Auto Loan Approval is the perfect bad credit auto financing partner for Americans. Its online financing process helps you to enjoy guaranteed auto loan approval. Make a swift car purchase and bring home the car of your dreams today.

How Credit Repair Services Help to Get Guaranteed Auto Loan Approval?

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.

Debt-to-Income Ratio: Play it Safe to Get Guaranteed Approval on Auto Loans

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.

Consider the fact: Lenders don’t know you. They can’t determine whether you will be able to repay the auto loan amount in future. Instead, they look at the DTI and know about your ability to make monthly auto loan payments. So, play it safe and avoid messing up your DTI.