Archive for July, 2011

Steps to Finance a Car With Bad Credit

Posted by admin in Auto Loans on July 19, 2011

Financing a car with bad credit is challenging. This is because the rates involved are higher and the financing offers are quite limited. However, there are simple ways of how to finance a car with bad credit. All you need to do is consult some of the car advice offered online. In addition to this, you can conduct the needed car research on how to do this. To simplify the procedure, try to consider the steps provided below.

Step 1: Grab the latest copy of your credit report

The first thing that should be conducted before financing a car with bad credit is to obtain the latest copy of your credit report. The report is provided by the credit reporting agencies such as Equifax, Experian, and TrueCredit. You can obtain a free copy of this from each of the agencies through their websites.

However, request for a copy of the report from one of the agencies instead of from all of them since doing this lowers your credit score.

Step 2: Review the entries included in your credit report

Check the entries included in your credit report for possible errors. Try to correct the errors or have the wrong entries removed from your credit record since this will help in improving your credit score.

Make sure to check if you still have delinquent loans that require immediate payments. Settle each of these before getting an additional vehicle financing.

Step 3: Research for the rates that are applicable to your current score

In order to determine the rates that would possibly be offered to you by lenders, try to conduct an online research. This will help you prepare for the rates that you would be paying. Read the rest of this entry »

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Five Options for Financing a New Car

Posted by admin in Auto Loans on July 19, 2011

Getting a new car is very exciting; however, in order to pay for the vehicle, you will need to finance it. You want to carefully consider your financing options so that you can get the best deal for you. There are 5 loan options for you to think about when financing a new car:

  1. A Bank Loan: The loans that you can get through the bank are either secured or unsecured. They are usually offered between 2 and 6 years and are mostly fixed rates. You might begin with your own bank or credit union, as they usually offer the lowest rates. If you have a good track record with your bank, they will probably be very easy to do business with. Then you can shop around on the internet to compare rates. You can get quotes online and get pre-approved, thus decreasing your anxiety.
  2. A Dealership Loan: One of the main advantages of getting a loan through the dealership is that you are already there, so it is quick. You can arrange your loan right after you choose the car that you want. If you have bad credit, dealerships can also help you find a program that can help. A dealer might also have the power to find special deals, such as a no-interest loan for a certain amount of time.
  3. Home Equity Loan: With a home equity loan, you can borrow against the equity in your home. The advantage of this loan is that the interest rate is usually always lower because your house serves as collateral. You can also deduct the interest from your taxes.
  4. Leasing the Car: You can decide to lease the car, whereas most contracts allow you to drive the car up to 12,000 miles a year. You will be asked to fill out a credit application and based on your credit score and length of the lease, the dealer will look for a lease for you. When you have made all of the lease payments, you can then choose to buy the car for the residual price or negotiate for even a lower price. Read the rest of this entry »

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