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Written by Russell
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Thursday, 01 July 2010 15:42 |
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If you are looking to find lenders who will offer bad credit car loans, you are in a grouping with others in a similar situation called subprime, by lenders. Just because you are classified as subprime by lenders, doesn’t mean that you can’t get a car loan. It just means that you have bad credit, typically a credit score of 620 or less but different lenders have different standards.
However, this does not mean that all hope is lost because there are plenty of lenders who specialize in bad credit (subprime) car loans. While there will still be lenders to offer you a car loan, the interest rates on the bad credit car loans will be higher than a normal (prime) car loan. An important tip to remember when searching for bad credit car loan lenders is not to rely on the dealer. Often times, dealers serve as the middleman between the borrower and the lender. When this happens, the dealer takes a cut of the deal. Since there is one more party to take a piece of the pie, this loan will likely be more expensive to you than if you had contacted the lender directly.
Also, since as I noted earlier that different lenders have different standards for lending categories, you should shop around to different lenders to find who will give you the best rates. While your credit score may land you in the lowest category with one lender, you could be one category higher with another lender.
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Written by Russell
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Tuesday, 29 June 2010 00:00 |
When applying for a bad credit auto loan, you are often at the lenders’ mercy since they are the ones who decide whether or not to grant you your desired loan. In the business of bad credit auto loans, it is easy for lenders to deny clients their loan by labeling them as “a high risk client.” Potential borrowers with bad credit are often denied auto loans but borrowers can avoid the risk of being denied for bad credit auto loans by applying for a loan with guaranteed approval. Since the borrower can’t change their poor credit overnight in order to get a more favorable loan, the more reliable option is a loan with guaranteed approval.
Bad credit auto loans with guaranteed approval are offered to borrowers with poor credit scores and often offered to students just out of college who may not have a credit score. As you will know if you have bad credit and have previously applied for a bad credit auto loan, lenders will carefully probe you for your poor credit history. Bad credit loans with guaranteed approval can help you avoid the humiliation of being denied for a bad credit auto loan, although the interest rates for the loan will be higher. The following are some tips for achieving a bad credit auto loan with guaranteed approval:
Maintaining a good credit score will help you in many aspects of your life but especially in making the most of your guaranteed approval auto loan. Keeping a good credit score will give the borrower some bargaining power and will allow you to be approved for multiple loans and be able to choose the better loan. When choosing a bad credit auto loan, make sure that you get everything in writing so that you know the exact terms of each contract and can make a fair comparison. Your good credit score will also increase the potential for you to refinance your guaranteed approval loan which can be vital since the interest rates for guaranteed approval loans are often higher.
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