Second Chance Auto Loans: How to seal the Deal?

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?

Don’t despair; here’s something to help you out!

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.

Second Chance Auto Loans: How to get one?

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.

1. Focus on your Income: Tell the Truth

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.

2. Curb your Expenses: Buy an Affordable Car

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.

Time-Tested Advice for buying your First 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.