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Online automobile financing companies aim to get you affordable car loan for either new or used cars. All auto loans program are designed considering all credit types, so it doesn't matter if you have bad credit, no credit, poor credit or bankruptc

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Creation: 31/05/2010 09:56
Update: 13/12/2010 12:03
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bandu2 : menu_arrow.gif Article: How to Get Better Car Loan Rates with Bad credit? - 29/06/2010 08:28

If bad credit car loans candidates go out in market only one or two lenders come forward to offer an auto loan, for them online financing can be a great time saver. As the online lenders have many subprime lenders in their network who offer many loans to accommodate different credit types and will helps you get the better interest rates. Thus, individuals even having a terrible credit history can get approved easily.

For the first time buyers getting a car loan is always an issue. As for a lender, the buyer is an unknown person who asks for a huge sum of money and the buyer can also not prove that he will pay it back with no lending history. Financing a new or used car requires some credit history for lenders to have an idea of the borrower’s credit habits. Thus when a car buyer with no credit history attempt to buy a car most finance companies hesitate to approve the loan application. But now with competitive marketplace, lenders are stepping up to help first time car buyers. Many a times car dealers take advantage of people with no credit history by charging higher interest rate. Although auto rates offered by online auto loan lenders to those with no credit history, are reasonable and generally lower than that offered by the dealership.

Now the market has provisions were you can get car loan even after bankruptcy. With bad credit type of loan, your interest rates are likely to be higher. However, a co-signer can help you getting better rates. Co-signers are required to sign the loan agreement in case of default on loan payments by buyers. Before few years it was impossible to get an auto loan with bad credit and that too without a co-signer. But times have changed; now you can get a no cosigner bad credit car loans with poor credit, no credit and bankruptcy.

If you have already got into the trap of higher rates on auto loan, bad credit car refinancing loan can be the smart solution. As it helps you reduce interest rates or a monthly payment thus saving money over although the span of the loan and make your monthly payments more affordable. Above all, bad credit car loans can also improve your credit score.

bandu2 : menu_arrow.gif Article: Buying a Used Car for Any Credit - 29/06/2010 08:31

Mainly young people and limited wage earner face difficulty in buying a new car for the reason sky rocketing prices of new cars. So they do not want to use their whole savings to buy just one high prized car. At such circumstances used car loan is best option for purchasing a used car. Because now a days used cars are as attractive as the new ones and so you can get used car loans at very competitive rates as the cars seized from defaulters are as good as new. There are many such used cars to be found that are just a year or two old. These cars possess more or less the same features as a new car. The various types of used car loan which can be found in the market are mentioned below.

Generally there are two types of used car loans one is secured and another is unsecured. In a secured used car loans you can get competitive interest rates. And any type of asset or bank paper containing certain value can be used as collateral for the used vehicle loan amounts. You can use the vehicle itself as collateral for a used vehicle financing. In secured car finance you can borrow up to the amount of equity in collateral.

Another is an unsecured used vehicle loan which is generally targeted for all those who are not willing to place collateral. An unsecured used vehicle loans carry’s no risk to assets since assets are not involved. The factors like your credit score, credit history, financial situation, employment proofs and income proof are taken into consideration when determining the interest rate of a unsecured used vehicle loan. Many lenders offer low interest rate used car loans. Regardless of your credit history, you can get approved for a low interest auto loan as the financing based on your qualifications. As the online lenders have thousands of lenders in their network, so that gives you an opportunity to compare lenders deals which will helps you to find the best rates. Thus you can also select terms that give you the most favorable loan financing.

It’s a well known fact, that person with a good credit score is always offered with a great offer and competitive rates. But now a days lender also offer bad credit car loans with the best rates on used car to individuals with poor credit. Unlike dealerships that offer excessive rates, the online lenders have a reputation for approving loans with fair rates. The objective is not to make profit out off someone’s misfortune, rather to help people to buy their dream car. Pre-approved used car loan is one of the best options to get you the best deal on a used car loan by getting your finance deal done before you buy a car. Pre-approved loans gives you the most options on deciding how much you want to borrow and what rates to accept. Thus it gives you an edge when buying a car.

Another concept which is more popular among the auto loans field is refinancing. People end up getting high interest rate when they have bad credit but when their credit gets improved, they still end up paying high rates. At times refinancing used cars can get car credit at low rate. Refinancing used car loans can immediately put an end to your monetary troubles that come with high interest car loans. Through used car loan refinancing, you would able to obtain a new loan including a lower rate of interest, in place of your current high interest rate loan.

Used car loans are very easy to get online by comparing various car loan quotes. Comparing online car loans facilitate in obtaining the best auto loan in the market. So, don't wait and go get yourself a used vehicle loan to get you the car of your dreams.

bandu2 : menu_arrow.gif Article: Bad Credit Auto Loans - Removing the credit barriers - 06/07/2010 12:10

Thinking of buying a car but your bad credit holds you back from securing especially when you think of financing it. The reasons for having poor credit can be numerous like past bankruptcy or simply default payment on either credit cards or loans. Of course obtaining a new car or used car loans with bad credit is not as easy as securing it with good credit score. Fortunately, now there are ways to increase the chances of not only obtaining car loan, but with affordable rates. Thus for people with poor credit, following the below mentioned strategies can help them assuring car loan approval at lower interest rates while giving them a second chance to improve credit rating for securing finance in future.

>> Maximize Down Payment:

Increasing the size of your down payment can help you gain approval on your car loan with any credit situation as it provide greater equity or security to the lender. Thus the lender is quite assured as half of the payment is made and offer you quick approval. Down payments also help you to reduce the interest rate as the lender is secured with the amount which ultimately reduces your monthly payments and chances of being upside down on car as the principle amount is reduced.

>> Getting Pre Approved:

Pre approved car loans with bad credit gives you negotiating power against the dealer to get lower price on car purchase. As you are pre qualified, it helps you to know exactly how much money you can afford to spend while buying a car, which enables you to be within the budget and allows to focus on getting the best car without worrying about financing.

>> Having a Cosigner:

Applying with a co-signor is an excellent way of getting approved for a car loan with bad credit, zero credit or even with a past bankruptcy. As a co-signer also known as co-debtor is held responsible for the loan if the primary borrower fails to repay and the car's value is not enough to cover the lender's financial losses. This reduces the risk of a lender and he can be assured of his payments. So, the lenders take into account a co-signer's credit score & history and grant you loan only if he qualify. In brief, applying for a car loan with co-signer having good credit history can offer you a guaranteed approval auto loan with better terms.

>> Finding a Sub Prime Lender:

Most banks and finance institutes only lend to people with prime or good Credit. If you have poor credit, bad credit, or very bad credit score, financing your automobile through sub prime lender can be the best source. The probability of approval for finance through sub prime auto lender is high as they specializes in offering finance to people with poor credit. They can offer you much more flexibility in terms and rates compare to the market and reduce inquiries on your credit report. Hence, before buying a car with bad credit you should first check your credit score and if it is poor then find a sub-prime lender.

>> Offering Collateral:

Bad credit borrowers can opt for a car loan in two forms, one is secured and another is unsecured. Through the secured form of bad credit car loan, the borrower can pledge his any asset like home, boat and even his current car with the lender. This offers security to the lender about the repayment of the loan amount and thus you can have the benefit of borrowing as much as you want to the value of the collateral, lower rate of interest and instant approval.

>> Financing without Credit Check:

Many lenders now offer a great platform through no credit check car loans for the car buyers with poor financial background to get their dream car. As no credit check auto loan is provided on the basis of an individual's income and employment history. So a person with significant income and employment history can obtain finance regardless of the credit issues.

>> Comparing Quotes Online:

Now the borrowers can find affordable deals online as per their requirements by surfing for bad credit vehicle loan online. Whereby, they can compare the loan quotes sent in by the lenders and without roaming around the market. All you need to do it to fill in a online car loan application form and wait for the approval, usually you can expect a response within one or two business days. A significant advantage of applying online is that you can fill from the comfort of your home while saving your time, money and without any hassle.

Bad credit borrowers now can take a relax breath with bad credit or no credit car loan and following above simple footsteps which can lead them to securing a car without any botheration of being rejected or accepting overwhelming rates.

bandu2 : menu_arrow.gif Article: First Time Car Buyers Loan - How to Qualify for First Auto Loan? - 06/07/2010 12:11

Driving away in first car which is one of the precious purchases of life is such a trill, specifically if it is taken independently. Moreover, if you have just started with a new job or college it would be a necessity like for most of Americans. While the only two options to get your dream car is either by paying cash or financing. Unfortunately, for the student or first time car buyer getting an automobile with cash is out of their reach and with limited or no credit history, it really gets tough to secure vehicle finance. However, it can be easy to qualify for a car loan if they consider few things before applying which can increase their chances of being approved for a first auto loan. In addition, there cannot be the best way other than car loan to build or rebuild your credit history as the loan stay on your credit report for more than a year if paid consistently. So, before getting the new car keys on your key chain, exploring few auto financing tips could save lot of money besides, getting you easily approved for automobile loan with lower rates. Below are few known but important questions enlisted which a person with lack of credit needs to consider before applying for auto loan.

Should I apply for New or used Car?

Being a college fresher or first time car buyer, it becomes your prime concern to know which car would be best for you, when you are still juggling with your dollars and building credit. Both new and used cars have pros and cons of their own. Generally, used cars cost less than new cars due to its already depreciated value at the time of purchase as compared to new car which depreciates by 30 percent approx in its first year. Even if the price seems lower, the rate of interest for used car loan is usually higher due to decreased resale value, and risk of loss to the lender in case of borrower’s default. While, the higher rates increases the chance of being upside down on car, where the cost of car is more than you owe on it. Moreover, you need to keep in mind the maintenance and repairing cost if you are thinking to buy a used car since these cars are older it may cost you hand sum amount. A lot of dealers offer repairs and maintenance, if the car is under warranty for either new or used car. But if you’re buying a car from a private party and not a dealership, you would be puzzled on status of your warranty and the auto parts also. Therefore, it would be advisable to take a mechanic with you while purchasing a used car.

While with a new car, the prices are usually high, but you can acquire low interest rates and longer terms with warranties with no repair and maintenance cost on new car loan which ultimately reduces your monthly payments. Thus, reduces your chances of being upside down. So, it becomes mandatory for first time car buyers who are unaware about of the auto industry to consider all this while opting for first car.

Do I need a co-signer?

The first time buyer will generally have nothing on their credit report which can be said as a plus point rather than having negativity or bad credit history. However, due to their unproven credit worthiness for a lender it’s just like hitting a bull’s eye in darkness. And hence many lenders hesitate to offer auto loan with zero credit history. The simple way to overcome this, would be finding a co-signer. A co-signer can be any individual who has established credit and agrees to make payments if the original debtor defaults by co-signing the loan papers. In this way, the lenders risk is divided between the first time buyer and his co-signer. Thus, stronger the credit score of a co-debtor, lower will the interest rates for the borrower and vice versa.

It is understood that getting a co-signer is very hard, there are few lender who may offer you no co-signer car loan but then you would be paying higher rates that. But, typically for a first time car buyer having a no credit rating applying for an auto with co-signer could be advantageous.

Do I have sufficient money down?

This question may seem of less importance to many people, but this has the major effect on car purchase. Putting up a sizeable amount of money down can reduce your monthly car loan payments, which ultimately helps you staying within your budget. In addition to that minimum of 20% down can help save from being upside down on your car, where you owe more on car than its worth.

In this competitive market you may find lenders who will approve you for no money down car loans. But then you could be overpaying. Hence if you are thinking to a buy a car, only buy the car where you can afford to pay 20% down otherwise don't.

Can getting pre-approved help me?

Pre approved auto loans - Getting pre-approved for a first auto loan can be one of the excellent ways of securing auto finance. As you know what price range to look for, how much you want to borrow and what rates to accept. Thus you have the upper hand to the dealer and help you get a better deal on your vehicle.

Once you are pre-qualified all you need to do is bring in the amount that you are pre-approved for to dealerships and choose the car. It can be useful to qualify for lower rate car loan, especially for the first time buyers who have zero credit and dealers take advantage of their ignorance.

What can be the best way to compare quotes?

Comparing car loan rate is a tedious task especially if you have less than desirable credit and you are a first time buyer and have to rome around for lender to lender negotiating the rate. And hence, many a time’s people accept whatever rates offered. But remember, a car loan is a major financial decision, so make sure to compare quotes to get terms as per your requirement. The best source can be applying for online auto loan wherein, a lot of auto lenders offer quotes from more than one lender, which gives you an opportunity to compare car loan quote anytime from the comfort of your home.

The list of questions do not limit to this. There are other factors such as your income, pay stubs, year of residence and year of employment which the lender look into while qualifying you for your first time buyer auto loan. Hence, the first time buyers need to consider all these points before opting for a car loan and do the necessary home work before shopping for a car. A lot of online car financing companies offer car loan calculator, which can help you to calculate your affordable monthly payments.