Bad Credit Car Loans 2015 – Essential Tasks to Help You Succeed

 Bad Credit Car Loans 2015 – Essential Tasks to Help You Succeed

“The car has become a secular sanctuary for the individual, his shrine to the self, his mobile Walden Pond.” – Edward McDonagh

Cars are not just a mode of conveyance for us. We love cars and wish to own one that gives extreme joy and social status as well. If you are looking for a car, you must concentrate on obtaining car loans. It is because the sky-rocketing prices of cars have made it impossible to buy a car with cash.

When you apply for a car loan, your credit score is taken into consideration with several other factors. If you have bad credit score, like most other people who have suffered through the economic recession, you will have to remain extremely cautious. It is because a single mistake can result in unnecessary high interest rates. It may even damage your chances of improving your credit score. So, here is a list of essential tasks that you should assume in order to complete the car buying process successfully:

TASK 1 – PREPARING FOR BAD CREDIT CAR LOAN

A. Create A Budget

Calculate your budget so that you don’t buy a car that is not in your price range. If you ascertain your spending limit, it will help you in negotiating affordable loan payments with the lender. If you are confused about what income and expenses to consider, you can use online car loan calculators available in the market.

B. Save for Down Payment

Most lenders offer high rates on bad credit auto loans. If you obtain a huge loan amount, you will have to spend more money on interest. But, you can turn this losing situation into a victory by making down payment. Down payment will lower your loan amount and will help you in making lower payments as well.

But, don’t worry if you don’t have money for making down payment. You can trade-in your old car and avoid paying in cash. There is one more alternative to help you avoid down payment and it is called bad credit no money down auto loan program. You can avail this loan program at slightly higher interest rates.

C. Complete Paperwork

Bad credit lenders have become lenient and made approval easier. So, you won’t need additional documents for securing bad credit auto loans. You just have to provide:

1. Identification Proof (SSN)
2. Income Proof (Employee Verification Letter, Recent Pay-Stubs)
3. Financial Statements (Bank Details, Tax Information)
4. Receipts of Utility Bills

TASK 2 – APPLYING FOR BAD CREDIT CAR LOAN

Gone are the days when bad credit car buyers had no place to apply for an auto loan. Today, you can get bad credit car loans from:

1. Online Auto Financing Companies
2. Car Dealerships
3. Credit Unions
4. Traditional Banks and Other Lenders

Before you start submitting loan applications to everyone, make sure that you understand their loan approval criteria and apply with the lender/dealer that suits your
financial condition.

Usually, online companies have the least stringent requirements and higher approval ratio. It is because they work with a network of sub-prime lenders and dealers. So, they have the advantage of forwarding your application to other lenders if the first one rejects it.

So, search for a reputed online auto financing company and apply for the most suitable auto loan option that improves your credit ratings. Hope you become successful in finding the best bad credit auto loan program. All the best!

Rapid Car Loans is a reputed online bad credit auto financing company of America. It is extremely popular among bad credit car buyers because of its ability to provide guaranteed auto loan approval. If you are looking for a low rate car loan, apply with the company. It will help you in securing the best rates on the loan program.

Can You Get A Motorcycle Loan With Horrible Credit 2015?

 Can You Get A Motorcycle Loan With Horrible Credit 2015?

Getting a motorcycle can be an excellent investment. They use less gas, they allow you to enjoy the fresh air, and they don’t take up much space. It’s a favorite pastime in America and many people have decided to get one for their home.

While cars are great for transporting your family, for bad weather conditions or for needing to be able to talk to your passenger during the trip, motorcycles are a great way to save on gas, have an enjoyable ride and you’ll even be more focused since you won’t be tempted to text and drive.

For those that would like to invest in a motorcycle, but realize their credit is not in good shape, they may be wondering how they could get their motorcycle loan. Although motorcycles can be expensive, there are ways for those with horrible credit to get a motorcycle loan.

Where to Begin

If you are looking to get a motorcycle with horrible credit, you are not out of luck. The first thing you want to do is start saving up money because you’re going to need a big down payment. This way, you don’t have to pay cash for a bike, but you’re more likely to get a loan because you can put down a large chunk of it. This will also decrease the amount of money you’d pay over the life of the loan.

Try to get a Co-Signer

While this is not possible for everyone, you could try to get a co-signer. It doesn’t have to be a relative. It just needs to be someone who is willing to sign their name on the loan saying they will pay the loan if you don’t. As long as you pay your loan, your co-signer won’t need to do anything, but having a co-signer increases your chances of getting approved for a loan.

Try to Improve your Credit Score

Practicing better financial decisions and strategies can help to improve your credit score. Getting in good standing on any past due debts and lower credit card balances can also help. Over time, your credit will start to improve and you will be more likely to get approved for a loan.

If you don’t have Luck with the Bank

If you’ve tried to get a loan through a bank lender, there are other options. Look online for lenders that may give you a personal loan. Another way you could go is to try borrowing from someone you know on a loan basis. If a relative or friend lends you the money, you could have a type of contract typed up with this person on when you agree to make payments and if they’ve asked you to pay them any interest.

Micro-lending

Another way to get a loan is through a process of micro-lending, a practice in which small investors put money into your loan and get some of the interest instead of it all going to the lender. This is helpful for bad credit borrowers who are looking for someone to help put money down on their loan, but will also benefit through getting interest. It’s a good investment for both lenders and borrowers.

Bad Credit Loans

If you are able to get a loan, it’s probably a bad credit loan. This is still a loan so you could still get the motorcycle. The only downside to bad credit loans they come with higher interest, but regardless, it still gets you the motorcycle. Beware, bad credit loans typically come with higher penalties if you don’t follow the terms of the loan.

What to bring when trying to get a loan

Make sure you bring with you a few items including:

  1. A valid driver’s license or ID
  2. Your social security number
  3. Proof of your income, usually several months of consistent paystubs
  4. Proof of your residence, the bank needs to know you have a permanent address
  5. Make sure you are at least 18 years old if you want a loan

Getting a motorcycle loan with horrible credit isn’t impossible. Take these steps when trying to get a loan and remember that you can always improve your credit, save up a large down payment, and try again later.

Things to Consider Before You Get a Car Lease 2015

 Things to Consider Before You Get a Car Lease 2015

Some would-be car owners think they cannot get a car because they cannot afford payments and they have poor credit, but it may still be possible for families and couples to get a car. However, before you choose a sign a lease agreement; you may want to consider more than if the amount of the monthly payments.

Is the lease agreement an open or closed-ended agreement? Does it matter? It may make more of a difference than you realize. It can affect how the payments are figured and may affect how many miles you can drive your leased vehicle. Do you still have to pay fees after turning in a leased vehicle? It can make a difference depending on whether you signed a closed or open-ended lease agreement.

Is gap insurance for you or will leasing help you with job Stability?

Some people may want to get gap insurance. This insurance may help pay the difference if a leased vehicle is in an accident and keep leases from having to deal with the damages from the accident and also their insurance fees. While gap insurance may not pay for all the fees you need, it can help to not leave you a large bill unexpectedly. It is good for those who decide lease to balance their payments with their job stability. It does not help to get to work if the money spent work goes entirely to pay the lease payment. But it is good to have a car to help you find a better job or be secure in your employment.

Look at the vehicle you are leasing? If you are doing a longer lease agreement, is it possible that the lease vehicle will last you through the year without having to pay much in wear and tear? If the vehicle is under a warranty, maintenance may be covered for the life of the lease. Read the lease agreement well, as not all leases will include paying regular oil changes or things that are considered “regular maintenance.” Will they also cover major damage caused by accidents? It is best to ask before signing a leasing agreement what the company will cover if the unexpected happens.

Save money by not having to sink more in for Repairs

For people who have older vehicles, leasing a vehicle may be a good option. As cars age, smaller parts, made of plastic, tend to break and wear. Rubber also develops holes and leaks can spring. With a newer leased car, you may have the assurance that you won’t have to spend as much out-of-pocket to keep up with the continual maintenance needs of a newer car. If a leased vehicle is also a longer term car lease, you may have cheaper monthly payments than a short-term lease.

Have you ever considered leasing before? Isn’t it nice to know your job is not at stake because you cannot get a car? At EM Lease, we believe that our customers, whether businesses or individuals, need flexible, hassle-free solutions to their vehicle needs and this is what we offer. We offer short-term leasing contracts that are: Flexible, short-term, affordable, practical, fully maintained, and simple. We offer new vehicles which come fully maintained, so you do not have any hassle. Our vehicles are also competitively priced within the market. Have your circumstances changed? We offer flexible leases for six to 12 months. Looking for something specific?

How to Ensure Car Buying Success With Bad Credit History 2015 As Your Partner

 How to Ensure Car Buying Success With Bad Credit History 2015 As Your Partner

According to a new report by Experian, a huge number of US consumers are buying cars. The phenomenon is a result of easier loan access and less-stringent approval criteria. The report revealed that lenders and banks financed 85 percent of the total new car purchases and 53.8 percent of used cars in the second quarter. This is higher by 0.5 percent and 0.9 percent, respectively, from the last year.

Everyone is running to the dealership lot for buying a car but you should not do the same thing if you have bad credit score. For ensuring success at the time of buying a car, a bad credit car buyer has to consider several things like your budget, credit score, down payment, etc. But, there is one more important thing that requires your attention and it is the car you are buying.

New Car or Used Car – That is the Question

Whether your car loan will be affordable or not depends on the car that you buy. So, you have to be extra careful because it has the power to improve or ruin your credit score.

Most bad credit buyers receive higher interest rates in comparison to others. So, if you buy a new automobile, you will end up paying more in terms of interest. Also, it will be costly for you because insurance premium amount is higher for new car in comparison to old cars.

It is safe to buy a used car with bad credit history because its low-cost will ensure an affordable loan amount. If you are careful in choosing a used car, you will have the advantage of obtaining a reliable automobile with less maintenance cost.

Options for buying a Used Car

Once you decided to opt for older cars, you have two sources to choose from:

1. Dealership Lot

If you are worried about ending up with a lemon, you can obtain a CPO (Certified Pre-Owned) car. CPO cars are ideal for car buyers who want to buy a less-costly used car that has undergone safety and performance inspection. It usually carries extended warranty.

Although, you must keep in mind that certified cars are a bit expensive than other alternatives because dealers conduct a thorough inspection of the automobiles.

2. Private Party

You can buy a car from a friend, colleague, neighbor or online seller. All such sales are categorized as private party car sales. Such deals are ideal for those buyers who want to avoid the incessant pressure of the salesman. A private party car purchase also leaves more room for negotiation but you have to ensure the reliability of the car as there is no certification available.

Next comes the Bad Credit Auto Loan for buying a Used Car

After you have made a decision about buying a used car, it is time to apply for a bad credit car loan. Before you go to a bank or seek dealership financing, you must consider the online auto financing companies. These institutions work with a lender network and ensure that your credit application reaches several sub-prime lenders and thus, ensure higher approval chances.

Here are few tips for obtaining quick approval on your online loan request:

>> Apply only with a sub-prime lending company with a secure website
>> Make down payment or trade-in your old car for lowering the loan amount
>> Bring a co-signer as it will increase lender’s faith in your loan application

So, this is how you can become successful in buying a car with bad credit history. Remember this bad credit car loan guide before heading out to make the purchase.

Bad Credit Auto Financing 2015 – Lenders Vs Dealers

 Bad Credit Auto Financing 2015 – Lenders Vs Dealers

Bad credit sometimes stands in the way of getting a car loan, but it doesn’t have to. Information is king and whomever is the most informed usually walks away the winner, although in this case driving away is the goal.

Let’s face it; its 2014 and the Internet provides the ability to access information from anywhere in the world has changed the way we all do business. This kind of access to information can be to your benefit or your demise! Your credit score is one of the most important forms of information that potential creditors want to access to qualify and rank you as a potential customer. These creditors are not the enemy. In fact they are our friends (at least we should pretend they are). They literally hold the keys to your new auto loan. Bad credit aside, the credit report tells the auto lender how much risk is involved with lending you their money.

Playing The Game

I am going to side bar for a second and talk about “Why you don’t NEED the bad credit auto lenders money!” Well actually you do need their money to successfully finance your auto loan but there is a key difference I would like to point out. Simply do not “Act” as if you absolutely need their money, that is you have to play the game just as they do. Desperation is your worse enemy if you have bad credit and are in dire need of a new car. Lenders don’t make money from lending you money and having you only pay back what you borrowed. They make money from interest on your car loan, and those interest rates can get pretty outrageous. Upwards of 20% depending on the lender, but can average around 15% for those with low credit scores. My point is that you must not give in to the first loan offer, you must NEGOTIATE! Lenders understand that you have probably been turned down multiple times (in fact they can absolutely tell from simply looking at your credit report) and now that you have been approved you will simply roll over at any loan terms they offer. Do not be afraid to let them know that you are interested but the interest rate is too high, or the total monthly payments are a bit much for you to sign for the loan that day. This tip is more mental but very much so practical and effective.

Know Their Playbook

Your credit score is a snapshot of the past but an indicator of how doing business with you in the future might look like. Auto lenders are only interested in the risks vs. rewards. Now I have purposely not used the terms “car dealer” or “auto dealership” for a reason. I wanted you to begin to separate the idea between lender and dealer. Your local car dealerships do not lend money, nor do they have any to lend you! (I am sure they would if they could) The dealerships are simply a middle man, they hold car inventory and have all the local resources necessary to sell the vehicles and negotiate the terms and conditions of the loan between the lender and yourself. Here are some useful tips for you to consider so that you are not easily taken advantage of while working with the bad credit auto dealers in your area. Check them out:

  1. Shady Tactics – You should never be required to buy an extended service or warranty agreement. Dealers like to pull this little sneaky trick because it puts profit directly into their pockets. This is where my above rants on the differences between dealers and lenders come in to play. Dealers make their money on the differences between what they owe the car manufacture and what they sold it to you for. (They also get bonuses for meeting monthly, quarterly and annual volume goals). This shady tactic is simply about leveraging your desperation and squeezing extra profit from you in a time of need. Luckily the ease and access to quality information comes full circle, because you are here to increase your knowledge and hopefully that will bring you one step closer to a new or used car loan.
  2. Know Your Score – This is as simple as it gets. This is not a step you should ever skip. You should absolutely know your score before you even step into a dealership. Bad credit loans typically come with high interest rates and sometimes require larger down payments. Dealers cannot really adjust or play with that fixed interest rate because that comes directly from the bank. However they routinely lie about how much of a down payment is required to secure your new loan. The lender could request a $2500 down payment but the dealership would tell you that a $5000 down payment is required. Again their intent is to pocket the extra $2500 as profit. They normally can squeeze this extra cash out of you by simply lying about the credit score that came back and scaring you into thinking that $5000 was required by the bank to get the loan done. Like I said “Know Your Score!”. Enough said.
  3. Total Price Is KING – If you have bad or damaged credit it is probably for this simple reason: At some point you owed more money than you had to pay out and things got ugly. Well typically this type of history follows behind a shortage of cash or inadequate monthly income sources. In turn you simply begin to manage and think about all financial decisions as a monthly payment. This is not inherently a bad practice however you must remember that your auto loan is going to come with a pretty hefty annual interest rate. This can blind you while you considering your needs for a new car. Monthly payment… Monthly payment..that’s your typical mantra as you approach the dealership looking for a car. However this is the mantra of the salesperson as well. That’s a problem and here is why: You should be interested in negotiating total price because that is the only way you are going to truly save some money. The dealer is interested in negotiating monthly payment because that keeps your attention away from the fact that they are not discounting the price of the car. It also keeps your attention away from the fact that your monthly payment will mainly be made up of your interest due and only a small part of your principal balance. So if you are even mildly interested in saving some money, which I know you are, then focus on the only area you can actually do so: Total price of the car, not the monthly payment.