A very important part of your credit education is staying on top of credit facts in the news. This week we will take a look at things that are happening right now that affect your total financial future.
If you can possibly wait you should buy a car after you are pre qualified for your home purchase. When you are ready to buy that cat the news below can help you.
According to Huliq News, Buying a car with Bad Credit can work for you but you need to take a careful approach. Are you thinking of buying a car but your bad credit holds you back from securing it 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 loan 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 for 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 automobile financing for 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.
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 vehicle 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 car 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 auto loan and following above simple footsteps which can lead them to securing a car without any botheration of being rejected or accepting overwhelming rates.
At HOPE we educate our clients everyday on making wise credit decisions. If you would like to know more please call us at 704-503-3669. Our staff is waiting on your call.