Bad Credit Auto Loan: A Way to Repair Your Credit Score

Having a car has become a necessity in today’s fast growing world. But to obtain a car you need a good credit score. What do you do when you know that it is not as good as it should be and you find yourself in a tight spot financially? The first thought that comes to your mind is whether you will qualify for an auto loan. And, why would a lender approve loan application of an individual who has a spotty credit score? But the good news is that you can get a bad credit auto loan.

What is a Bad Credit Auto Loan?

The simplest definition is that you can get money for buying a car with a bad credit score. A credit score depends on your ‘creditworthiness’. So when you have a bad credit score, getting an auto loan becomes difficult because a lender thinks that you are unable to repay your debts. Today, owing to online services many lenders offer attractive interest rates on a bad credit auto loan providing the borrower a sigh of relief!

It’s no Picnic!

Getting an approval for a bad credit auto loan is no picnic. It means that when your credit score is not in your favor, it becomes difficult to get approval. But, with the following guidelines, approval becomes easy:

· When your credit score is in question, don’t assume that it must be bad. The wise way is to check it yourself.

· It is the best time to shop around for a bad credit auto loan. Many lenders see borrowers with credit issues in a positive light. So it is important to shop around in order to make the right decision.

· Go online! Various loan options are available online which not only suits your needs but also offer you best interest rates.

· Consider a co-signer. A co-signer provides the security which lenders are looking for in a loan application. Your co-signer’s financial condition should be good in order to compensate for your low score.

Different Lenders have Different Viewpoints

Something that is multifaceted can be looked at from many points of view, with each point of view showing something new.

· You don’t have to worry about your credit score since the lenders are not going to looking at it. Instead, the lenders will look at how likely you will pay off the loan in future.

· The approval rate for a bad credit auto loan is higher than other conventional loans.

· It gives you an opportunity to improve your reputation. If you make timely payments, it can provide you with a chance to build a stronger financial standing.

On the approval of a bad credit auto loan, you will now have the money to buy a new car. You will have fixed interest rate and monthly payments. So now when you make the payments on time, it will not only repair your credit score but also build a good reputation with the lender.

When your credit score is not good, Online bad credit auto financing is the perfect way to buy a car. Apply with EZ Auto Finance and the online loan expert will help you to become a proud owner of your favorite car. Also, it will enable you to obtain no down payment auto loans.

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Personal Loan and Its Different Advantages

A personal loan is an unsecured loan which is offered to a consumer for catering their various personal needs such as the renovation of a house, marriage, home appliances, buy vehicle amid others. This is offered after verifying one’s ability of paying especially the income source and also according to their credit history. A nominal processing fee will be charged and the sum as per a person’s paying ability will get credited to their account. In fact the loan payment is made via fixed installments which also includes interest and for fixed time periods. The icing on the cake is these days personal loans are a smart choice as one do not require going through a lot of formalities and tedious paperwork. Most of the financial institutions and banks offer personal loans today and the rate of interest is also quite reasonable.

Discover the different benefits

• Available easily- to get a personal loan is no longer a challenging affair. It is offered by almost all financial institutions and banks at a reasonable rate of interest. Compared to other loans it is convenient and easy to get

• No middleman or agent involved- for availing a personal loan one will not require taking the help of an agent or a middleman. This will avoid unnecessary expenses and delays. A person can approach the financial institution or bank for the purpose directly

• Unsecured loan- this is indeed an unsecured loan. Here no collateral security is needed for availing the loan. In fact, all that is needed is one’s ability of paying back the money.

• Less processing time- because it is accessible devoid of any guarantee or security the processing time needed to get this is naturally less compared to other loans

• All purpose loans- in this form of loan it is not compulsory for a person in specifying the reason for which they will be using the money.

• Minimum paperwork- to get a loan will not need any asset verification or other forms of certificates and proofs which include ample paperwork as none of one’s property is mortgaged

• Offers and schemes- different financial institutions and banks keep announcing offers and special schemes on personal loans, especially for the professionals such as architects, doctors, chartered accountants and the like

• Amount and tenure- these loans generally are provided varying from Rs 15000 to Rs 20 lakhs differing from one bank to another. The repayment can be made through EMIs

The bottom line is, rather than borrowing money from a credit card it is always better to choose a personal loan as the rate of interest is comparatively lower. So reap its utmost benefits.

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Applying for a Personal Loan With Subpar Credit – What to Know

Anyone that finds themselves with multiple balances on credit cards that have high interest may consider looking for a personal loan with bad credit. This allows them to transfer those balances and take advantage of a lower interest rate to pay off their cards. Sadly, many banks will turn them down due to their credit. Thankfully, there are ways to get a loan that will help them save money, even with that low credit score.

Whether due to financial issues, job loss, or just striving to build a good credit score as a first time user it is difficult to get a loan. The way credit reports work is always changing and there are many factors that affect a person’s credit. It’s important to stay in the know about how to build it, and what your options are. There are likely more options than they think. Here are some ways to apply for and get a personal loan with bad credit.

How to Get a Loan with Bad Credit

Having zero credit or poor credit is a major issue when looking to secure a loan, because that person is viewed as a high risk customer who may default. It’s important to accept that until the credit score is raised, one won’t be able to enjoy the standard lending guidelines offered by big banks.

For anyone that’s been turned down for a loan or who doesn’t want to pay monstrous rates, here are some options:

Consider a Home Equity Line of Credit

If there is enough equity in owned property, it’s possible to secure a tax-deductible, low-interest loan or line of credit that can be used in any way. The only downfall is that many don’t want to tap into their home equity as it puts the property in jeopardy if they can’t repay it. However, with a steady income and a bit of discipline then this can be paid off and is a less pricey option no matter what the credit score!

Try and Apply to Credit Unions

Credit unions are so much better than a regular bank. That’s because they are member-owned. Usually they are founded by people who have something in common whether it be living in the same area, or working in the same profession. They are nonprofit and have a sole purpose of helping members. They offer great customer service and low fees.

Borrow from a Friend

Consider what’s called P2P or peer-to-peer lending. There are even sites online that let a person borrow from someone directly rather than a bank. This form of lending is getting very popular and is quite simple. It’s a winning situation for both investors who want to earn interest and borrowers who enjoy paying lower rates. It’s the perfect solution when looking to apply for a personal loan with bad credit. Current rates with P2P lending are as low as 6%. That’s far lower than most credit cards.

Family Loans

If an online peer doesn’t pick up a loan request, there’s always a chance a family member might. However, it’s more than important to treat a loan from someone in the family just as a professional loan. It should be documented and recorded. A written agreement should show the interest rate, terms of repayment and collateral that’s going against the loan. It should also lay out all the actions to be taken if the borrower does not repay.

What About a Co-signer?

If one is searching for a personal loan with bad credit and they don’t have a family member or a friend that is available to offer the loan, maybe they would consider co-signing. This is when someone who trusts that the borrower can repay the debt would take a chance on them and be a back up to repay the loan should that person default.

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How Can I Buy a Car With Bad Credit?

According to an article in consumers affairs;

In general, it is better to go with a bank or an auto financing lender rather than the car dealership down the street that is offering a “buy here, pay here” deal. If you do wind up with a high interest rate on your car, work on rebuilding your credit score so that you can eventually refinance.

If you suddenly find yourself without a car you might be asking, “How can I buy a car with bad credit?”, well, You DON’T! I know not having a ride can be a problem, like how do you get to work, or what if you want to go out? Well as far as getting to work goes, see if a work colleague lives near you and chip in on some gas for a ride. As far as getting out from time to time, there’s always Uber.

You want to give yourself a few months to save up some money and pay cash for a vehicle until you can get your credit to a point where you can get a 6% or less interest rate. Your choice of vehicle will be better and the total cost for the vehicle will be a lot less.

Another problem with buying a car with bad credit that most people forget is car insurance. Your insurance premiums unfortunately are also based on your credit score. The combined monthly cost of your car and insurance could be challenging. Again, waiting until you have a good credit score will save you on insurance as well.

Here is an example based on $35,000.00 vehicle purchase at 20% versus 6% on a 5-year loan.

$35,000.00 at 20% interest you will pay over $15,000.00 in interest at 6% you will pay approximately $5,000.00 in interest. Quite a difference.

Your total cost for the vehicle is about $15,000.00 less in interest at 6%, and your monthly payment is approximately $250.00 less per month!

OK let’s play a little game, what if you took that $250.00 per month that you’re NOT paying in interest and invested it each month over the same 5-year time period with a 6% return?

Well you end up EARNING $3000.00 instead of PAYING $15000.00. I’d say that’s a pretty good argument for doing everything you can to avoid a high interest car loan.

Instead, put ALL your resources into getting your credit fixed. This will put you in to position to buy at a good interest rate with minimum money down. This will save you a ton of money and you won’t regret it!

Buy a new car or even a used car is never a good investment, but one you can’t avoid. Buy a car with bad credit, as you can see, is yet a worse scenario. Make sure you do whatever it takes to avoid this costly mistake.

If you considering purchasing a car in the near future and have some credit challenges be sure to check with one of our Credit Experts to see how you can improve your credit for the best interest rates and no money down options.

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Some Considerations About Personal Loans

Most, not to say all lenders, want to make sure they get their money back and this is done through a security. In other words, they want to have a way of making cash fast on something that is yours. This is only natural and a lender who doesn’t do that is an idiot, a philanthropist or probably a close relative of yours, which is not the case here.

What Gets You A Better Deal?
Well, the best possible scenario is when you are a homeowner and the property is not mortgaged. Even better still, is the fact that your property is insured. Personal loans are special, in the way of not needing to inform the use you will give to the money, once it is in your hands. Nevertheless, it is useful to inform what you will do with the loan, when it can mean a further security.

For example, adding a room to your house as the family gets bigger, can be taken as a sign of stability, being definitively settled in the area you live in and responsibility towards the welfare of your family group.

Other Assets

Other assets can be taken as securities, like your car, trailer or something valuable. These cases, of course will cost you a higher APR, or Annual Percentage Rate, but are still interesting in the way that it isn’t necessary for you to provide a co-debtor, that is someone who will respond to your debts in case you fail to do so.

So, What Makes A Lousy Deal?

First off, the wrong choice. I mean, the first lender that comes into your sight, or even a “wise guy” wanting to take advantage of your bad credit. Bad credit is just that: Bad credit. Don’t feel overwhelmed by it and know that you deserve good treatment, whatever your credit. Another thing that makes the deal a lousy one is when your home is mortgaged and your car is still “pinned” as a security for your car loan.

Probably, if the debt is near the end, you may want to get a small unsecured loan to pay off the car loan and use the car as security for the personal loan. The same thing applies to the mortgage on your house. Of course, you must take into account the addition of payments due every month, so as not to incur in unnecessary financial harassment to your family.

One Last Point

Always find out what the normal bank interest rate is, for a deposit of approximately the same amount of the loan you are looking for. Then calculate a healthy profit for the lender, but consider that it should never exceed the APR charged by credit cards companies. Otherwise you’ll be on the chopping block in no time. If you are not given the APR directly, ask for a quote and then calculate the interest rate yourself, with a few numbers on paper, or a simple calculator.

Research, investigate, find out, without even leaving your home. Surely you’ll find a good option on the Internet. There is always a right one for you, if you take the time.

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How to Get a Low APR Personal Loan

A low APR (Annual Percentage Rate) loan is almost always given to loan applicants whose credit rating is excellent. You can do a lot to improve your chances of getting a low-interest rate personal loan by improving your credit score. Besides your credit score, there’s very little left to getting any loan with a low-interest rate.

Of course it is possible to get a loan from friends and family members, where the rates are really low. In fact in most cases, loans obtained from friends and family members as well as from your work place, do not attract any interest at all. However, if you want to borrow from regular lenders such as banks and other mainstay financial institutions, you should consider these steps to help you get the loan at a low rates.

In this article we show you 4 tips to increasing your credit score if it is not good.

1. First Things First.

Improve your credit score. Low APR personal loans are normally given to applicants with high or stellar credit scores. To raise your credit score, remove as much of your debts as possible and pay your bills on time. Also refrain from making too many credit enquiries. Whenever, you make a credit enquiry by applying for a loan or credit card, it lowers your credit score.

2. Apply for Personal Loans Using Collaterals.

Unsecured personal loans have high interests rates even if you have excellent credit score. So to get a low APR personal loan, consider getting a secured loan instead. For example, you can use your car title as collateral. Usually the value of the collateral must be equal to the amount of loan you want to borrow. Secured loans usually come at lower rates than personal loans.

3. Using a Co-Signer

The next tip of a low APR personal loan is to get a co-signer. This is also referred to as a co-debtor. You can ask a relative (parent, sibling or spouse) who have good credit rating to sign the loan with you. When you have a co-signer, lenders take into account their credit rating of the before determining the interest rate at which they give you the loan.

The APR will be low if the co-signer has an excellent rating. Ensure that you do not default on the loan because if you do, then the co-signer will be responsible for paying the rest of the loan and the interest. Besides it will negatively affect his or her credit rating so be aware of this.

4. Essential Comparison Shopping.

There are different lenders with different rates. So do some essential comparison shopping using loan comparison websites. After you have compared some lenders, contact a couple of them and ask for a quote. They would take the information you give and calculate the interest rate and monthly repayment amounts, and send you everything you need to know on that loan. Select the one with the lowest APR.

When you get the loan know that it is a great chance to rebuild your credit rating. Follow the tips in Step 1 above and within 6-12 months you should see your credit score begin to improve. Continue the process and over time, your credit score too will be close to becoming excellent.

From that point forward after you’ve obtained an excellent credit rating, you can apply for most loans and expect to get a low APR.

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Personal Loans For People With Bad Credit – Effective Ideas on How to Secure Best Deals

People with tainted credit history think they would not be able to secure reasonable loans anymore. With the advent of personal loans for people with bad credit, hope is given to such borrowers.

Many people with poor credit history are forced to apply for high-interest sub-prime loans if they really need financing. This is because most lenders categorize them as high-risk borrowers. Aside from astronomical interest rates, huge fees and unreasonable loan terms are also imposed on such loans.

Are there practical and reasonable personal loans for people with bad credit? You should not be surprised because many lending firms are now offering practical and attractive loan products specifically for the bad credit market.

It would not be too difficult to find and secure ideal personal loans for people with bad credit nowadays. Aside from the numerous banking and lending institutions that offer such products, many online financing firms are also providing quick approvals for poor credit personal loans. Here are the most effective ideas that should serve as your guide for securing best deals in the poor credit history market.

Choose The Best Lender

Because the market for personal loans for people with bad credit is truly expanding, it is not surprising that most lenders are rushing to get a significant foothold in the sector. Thus, you might feel confused when choosing the best products from a list of numerous lenders and financial institutions.

It has always been wise to run a practical comparison shop before you sign up with any lending company. You should always strive to stick with the best lenders that are offering the most attractive and flexible loan terms. Start getting free quotes online or through phone bankers. Choose the company offering the best deals and the best terms. Seek feedback and opinion from other borrowers to find out more about the lending practices of such businesses.

Avoid Misleading Terms And Offers

Many unscrupulous lenders are just out to take advantage of the growing market of personal loans for people with bad credit. Beware of lenders who initially offer low interest rates but eventually adjust such rates higher after you have signed up for your loan.

To avoid getting trapped into this pitfall, check the APR or annualized percentage rate of the personal loans. APR includes interest rates and all other charges that come along with the loan product. Also read the terms and conditions of the lender carefully before entering a loan deal.

Select Lenders That Report To Credit Bureaus

You should be aware that your bad credit loan could actually be used to improve your own personal credit record. If you pay your dues on time and prevent defaults, you certainly would ramp up and boost your credit rating. Thus, your bad credit personal loan could be a stepping-stone you could use to polish your credit rating.

To be able to take advantage of this, make sure the lender you sign up with is reporting directly to major credit bureaus in your community, city, or country. Your personal credit report would not be updated and improved if your lending company would not report your diligent payments on time. Make sure the lending firm provides this service.

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