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Car Loans for Bad Credit Easier to Get

Posted on Dec 17, 2012 by Thalia Green
Dec 17

Bad credit car loansIf you have less than perfect credit and have been wanting to purchase a new or used car, this may be the ideal time to start shopping! According to an Experian Automotive report, the sales of new and used cars to customers getting subprime loans has increased.



Subprime loans to customers purchasing new cars increased during Q3. This puts these loans at 25% of loans for all new cars. Used car loans at subprime rates are on the rise, becoming over 54% of the loans made for used cars.



As the economy continues to change, consumers are becoming more willing to make large purchases. Lenders are willing to take on a little more risk by approving more subprime loans. The affect of all this is that the new and used car market is open to more consumers.



While the market is far off from where it was a few years ago, changes in lending trends are helping to get more people into new and used cars. The credit scores required for new and used car purchases are lower than this same time last year. There is also an increase in the amount of money approved for both new and used car loans.



Some of these increases are due to changes in spending habits. Late car loan payments and repossessions have both gone down. The goal of lenders is to move auto inventory and to do that they need customers. When there are reasons for lenders to be more positive about the market, they will extend the subprime loans to more people, generating more sales.



The availability of new and used cars to consumers with subprime credit is still influenced by the brand and model. For example, Lexus and Lincoln require a higher credit score to get you into a new car versus a Dodge or Chrysler product, which only require the lowest scores.



With a little research on brands and subprime lenders, this could be the time for you to show your consumer confidence by purchasing a new or used car.

Options for Bad Credit Auto Loans

Posted on Sep 27, 2012 by Thalia Green
Sep 27

If you have bad credit due to unemployment, illness or any other type of dramatic life change, you're probably thinking that you're out of luck when it comes to buying a used car. However, that is simply not the case. According to a recent report from Experian Automotive, more auto lenders are taking the plunge on offering loans to customers in the subprime risk tier, with those loans representing more than one in four new vehicle loans for the second quarter of 2012. Given these circumstances, now is perhaps the right time to look for an auto loan that not only fits your needs, but also your budget.

 

 

You Have Options

 

The last thing you should do is let a less-than-perfect credit history in the way of your chances of buying a solid vehicle. Keep in mind that while you might not be able to get the newest vehicle on the showroom floor for 0.9-percent APR, there are plenty of excellent options for you to utilize in order to get yourself behind the wheel of a decent vehicle.

 

 

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    • Work with the Loan Specialist. Depending on who you talk to, the loan specialist may be able to work with you on a case-by-case basis, especially if you've been making efforts towards restoring your credit history.

 

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    • Go With a Cosigner. Having your loan backed by a cosigner with an excellent credit history and stable income can increase your chances of obtaining a reasonable car loan.

 

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    • Save Your Money. The more money you are able to put down as a down payment, the smaller your overall monthly payments become.

 

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    • Buy Smart and Sensible. It may be easier to obtain a loan for an affordable compact or midsize sedan rather than something that is a bit more extravagant.

Buy Here Pay Here Car Loans

Posted on Jun 04, 2012 by Thalia Green
Jun 04

Being turned down for an auto loan due to having no established credit history, leaves one shaking his head. How in the world does anyone get that first loan if no lender is willing to take a chance? In many cases, a potential borrower with poor credit has a better chance at securing auto financing than the person with no credit. It doesn’t seem to make any sense. What is the key to unlocking the credit mystery and getting approved for a car loan? Buy here, pay here car loans seem to have been designed to provide a solution for the first-time car buyer.


Buy here, pay here car loans is just another way of saying “in-house financing”. It simply means that the auto dealer is also willing to finance the car loan eliminating a third party lender. Because the seller is absorbing the risk, he can take a chance on customers with bad credit history of none at all. The term “buy here pay here” was coined due to the terms of the loan. Traditionally, this type of financing required that weekly or bi-weekly payments be made in person to the dealer.


The interest rate will usually be higher than the low rates offered by third party lenders. Of course, that is quite irrelevant when third party lenders won’t extend credit to the first-time buyer anyway. The upside is the opportunity for the first-time borrower to purchase much needed transportation and build credit at the same time.


There is another advantage to shopping at car dealers who do their own financing. The cars they sell must be affordable, so they aren’t squeamish about giving satisfactory value for the trade-ins they have a ready market for. It is easy to start in a low value, inexpensive car and once a payment history is established that auto can be traded in on a better one. 

Car loan bad credit: how to get a good deal

Posted on Apr 25, 2012 by Thalia Green
Apr 25

Many assume that it is impossible to identify car loans for people with bad credit. However, times have changed with more online lenders providing auto loans for bad credit. Why most people are not able to identify bad credit card loans is because they do not know where to look. Below is vital information that can assist you know where to identify bad credit auto loans.

 

Where not to look:

Many people are not able to identify bad credit auto loans simply because of using wrong search strategies. Many people start the process by going through their phone book and calling few firms. This strategy is not effective because a large percentage of lenders are not available in the local phone books but rather can easily be found online. Traditional lenders are very rigid and may not even want to consider issuing loans to people who have poor credit history due to the high risk factor.

 

Also these kinds of lenders are usually very expensive when it comes to interest loan rates. Even after getting a quotation, it is usually still exorbitant and unaffordable to many individuals. Further to this, the quotation is usually saddled with complex terms and conditions.

 

People also tend to approach dealerships directly in a bid to secure a car loan. It is fruitless to approach a dealer if you have poor credit scores. This is because they simply do not consider giving a loan to anyone with bad credit.

 

Where to look for Car Loans :
 
Those with bad credit should concentrate their efforts in dealing with lenders who issue such loans. There are online lenders that specialize on issuing bad credit car loans. The beauty about using online lenders is that they are flexible, provide attractive discounts and take time to make sure that the applicants get the best manageable loan deals possible.

 

With this information in mind, simply use the search engine and begin the process of looking for bad credit car loans

Subprime Car Loans - Two Warnings to Know Before Applying For Them

Posted on Dec 07, 2011 by Thalia Green
Dec 07

When standard auto loans are denied, subprime car loans are sought instead. Subprime creditors lend their money to those without at least a "Fair" rating for a credit score. It may seem like a generous second chance, but often this second chance comes at a steep price. Here are two reasons why someone with a bad or poor FICO score may want to reconsider getting a subprime car loan.

 

Massive Interest Rates

Every time a subprime lender allows subprime car loans, they take a risk of the borrower defaulting on the loan. To make up for this risk, the lender spikes the loan's interest rates. It will be quite a frustrating experience paying for deliberately elevated interest rates, especially after knowing what the normal interest rate should be. A person with a bad credit history probably won't have a choice in this matter; it's either take the subprime car loan or go without a vehicle.

 

A Lurking Repo Man

Vehicle repossession is another risk in accepting subprime car loans. Subprime lenders won't hesitate to get the vehicle pulled from the owner's possession. Just one late payment could mean the difference between driving and using public transportation. Some subprime car loan lenders have gotten especially furtive about how they go about repossessing vehicles. For example, they may provide a free GPS device in the purchased car. This implanted device can and will be used to hunt down the vehicle for a speedy repossession.

 

In October 16th, 2011, this practice got out of hand and ended with a Jacksonville car dealer facing a lawsuit by Florida's attorney general. Having a car repossessed will leave a long-lasting smear on a person's credit rating. Additionally, the harsh interest rates may make a loan seeker think twice about subprime car loans. Even with these potential problems, however, both borrower and lender know that having to deal with subprime car loans is still better than walking. If you're thinking of getting a subprime car loan, please proceed with caution.

 

Link: http://www.sunshineslate.com/2011/10/16/jacksonville-auto-dealer-sued-by-attorney-general-for-fraud-deception/

Low Credit Car Loans

Posted on Nov 28, 2011 by Thalia Green
Nov 28

When an economy turns south, more and more people are denied the credit they deserve. Millions see their credit scores drop into the low range, under credit bureau standards. These people may not really be any riskier today than they were yesterday, it's simply how people are rated. With low credit, many believe that a car loan is beyond their reach. This simple isn't true.

 

For most lenders, the credit score is just a number. They look at the individual, and their buying power. A person who pays cash for all their purchases may have a low credit score simply because they never use credit to buy goods and services. Many other people will have their credit scores drop through no fault of their own. Fortunately, many car dealers will help low credit buyers obtain car loans.

 

By offering low down payments, reasonable interest rates, and absorbing risk, car loan specialists are able to help people get into a new or used car. They understand that people need cars in America to get to work. The odds of being repaid by a borrower increase significantly when the borrower has reliable transportation to get to their job. They use these facts to secure financing for individuals who may have been denied loans by other lenders.

 

Hundreds of new and used cars are available for low credit borrowers. With low down payments, people lacking large sums of saved cash or trade ins are now in a position to obtain a vehicle of their own. High quality vehicles with low monthly payments help boost the economy and create a peace of mind in the buyers life.

 

If you've seen your credit score drop, been denied a car loan or thought you couldn't get a loan, you're probably looking at the wrong lenders. Today, millions of Americans are getting car loans with less than perfect credit, and you can too. It's a matter of finding the right car loan. 

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3 Tips to Poor Credit Car Loans

Posted on Nov 11, 2011 by Thalia Green
Nov 11

Poor Credit Car LoansPoor credit is a problem that many people face, sometimes through no fault of their own. Poor credit can have a deep impact on people's lives. A person's credit rating is always a criteria used when looking at obtaining credit lines or loans. Poor credit does not mean that you have no chance to get a loan.

 

Save as much as you can for your down payment. This will help to reduce the amount that you have to borrow. Larger down payments also reduces the risk to the lender and may give you more favorable terms. Be wary of plans that involve no down payment. If there is no down payment to reduce the overall loan amount, then you are paying more in interest over the life of the loan amount.

 

Co-signers can provide you the extra push you may need to get poor credit car loans. Co-signers agree to take up the payment, in the event that the borrower defaults on the loan. The co-signer's credit is important, but it does not have to be perfect. The lending company is only looking for a way to minimize their risk.

 

Pay off outstanding debts to lower your debt to income ratio. When loan companies look at a borrowers ability to repay a loan, one of the most important factors is the debt to income ratio. If you are saddled with a large amount of monthly debt, then the amount of money available to pay back a loan is reduced. Making sure that you have a greater amount of disposable income is a great way of making sure that the lender sees a greater ability to repay the loan.

 

Getting poor credit car loans is not impossible and can even help your credit score. Having a common sense strategy and preparation can mean the difference between getting that car loan and walking. Greater still, it may save you money. Even poor credit car loans can have reasonable interest rates. By starting with these three simple steps, you increase the chances of qualifying for a car loan and getting reasonable rates. 

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No Credit Car Loans

Posted on Nov 11, 2011 by Thalia Green
Nov 11

No Credit Car LoansIf you have bad credit or no credit at all and don't think that you can get a car loan, then think again. Carloans.com can get you an auto loan with any type of credit. Qualifying isn't difficult and all you need to do is break the stigma attached with bad credit and realize you can get the car loan you need.

 

Qualifying with Carloans.com is easy. Here are the basic criteria you will need to have:

 

- 18 years of age
- At least $1,600 a month in income
- Stable Job
- Sable Residence
- No repossessions in the last year

 

Getting a bad credit car loan is possible. But the first thing you need to do is honestly figure out how much you can afford for a monthly payment. Lower payments will mean that the duration of your loan will be longer and the interest rate could be a little higher, but you can still get a car loan with bad credit. All you will need to do is realize what your monthly payments will be and see what you can afford.

 

Everyone needs a second chance and you can get that chance with a successful payment history on your new car loan. Your credit history can improve and you may never have to worry about bad credit again. Carloan.com understands how easy it is to find yourself with bad credit all of a sudden and how difficult it can be to get out of it. If you qualify with the above criteria, you can get a car loan plain and simple.

 

Apply for a car loan today and you can be in your new car in as little as 48 hours. Everyone needs a car for everyday life, so don't let bad credit get in your way of getting a car loan today. Apply for a loan with carloans.com. 

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Bad Credit Car Loans - Why Some Are Approved While Others Are Rejected

Posted on Nov 10, 2011 by Thalia Green
Nov 10

Lenders have several reasons to turn down applications for bad credit car loans. Among the legitimate causes for denial, two of them stand out from the rest.

 

Incorrect Form Information

 

You'd think people would not be careless on an application for an auto loan, especially while having bad or poor credit. Far too often, the loan seeker gets their application rejected due to providing wrong or minimal details. Offer proof of identification, home or cell phone numbers and proof of home ownership or rent location. Make sure the application form has no typos or spelling errors; the creditors may approve a "John" but will probably reject a "oJhn."

 

The amount of monthly income must be stated on the form. Currently, loan companies won't bother with a borrower who can't give proof of earning at least $1,500 a month — good credit or not. The risk of a loan default makes the creditor shy away from bad credit car loans.

 

Going to the Wrong Company

 

Traditionally, car companies avoid auto loans with individuals who have a poor FICO score. Established enterprises like Toyota Financial Services prefer to take their business to people with a history of creditworthiness.

 

The borrower's goal should be to seek companies that specialize in bad credit car loans; not doing so is like expecting to be served hot dogs at a sandwich shop. There are more than a few moneylenders willing to take on the risks associated with bad credit car loans.

 

Your best way of finding a company that handles bad credit car loans is by taking your search online. For a modern financial institute, not having their own Web site is a knell for their business. You are virtually guaranteed to find them on the Internet because of this necessity.

 

Most creditors avoid credit options that seem risky, so act in accord and seek creditors who are willing to take a risk in bad credit car loans. As for the application form, you should treat it like a résumé and make it accurate, truthful and free of errors.

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What is "Subprime Lending"?

Posted on Oct 14, 2011 by Thalia Green
Oct 14

subprime car lendingMany people have heard of "Subprime Lending" but not everyone understands what that means. If you're curious about the definition of "subprime" and whether you fall into this catagory, read on.

 

What does "Subprime" mean?
In order to understand the meaning of "subprime", we must also understand the meaning of "prime". Customers are considered "prime" if their credit score is above a certain number, usually 620. Prime borrowers have good credit, a job, and a stable living situation. If the credit score is too low, the buyer may be told that they are "subprime". This is another way of saying they have bad credit. Usually the credit score determines whether a buyer is prime or subprime, but other factors can affect this as well. It is estimated that almost half of all borrowers are subprime. While this is not a desirable situtation, it might be comforting to know that you are not alone.

 

Does being Subprime mean that I can't get a car loan?
Once a borrower understands the definition of subprime, the next question they might have is whether or not they can still obtain a loan for a major purchase, such as a car loan. The good news is, not only is it possible, but there actually companies that specialize in subprime car loans. The interest rate will likely be higher because of the additional risk associated with subprime buyers. However, if you make your payments on time over several months, you may be able to negotiate a lower interest rate in the future.

 

Will my credit status be Subprime forever?
The good news is, credit scores can definitely be improved over time. Whether you stay in subprime status is very much in your power. If you make on-time payments on your car loan and other outstanding debt, this will improve your credit score and eventually raise you to prime status.

 

There are many subprime lenders, but finding them can sometimes be difficult if you don't know where to look. Consider using the assistance of an online company such as Carloans.com, which already has established relationships with many subprime lenders. The online company can perform a search for you and match you up with the best situation possible, so that you don't pay more than you have to.

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