Posts tagged ‘poor credit history’

Subprime Car Loans for People With Poor Credit

Dreaming of driving a new car, but tormented by a poor credit history? Don’t worry. There are funding options available.

Shop Around

True, a perfect credit history can get you a better loan with lower interest, but if you shop around, you will be surprised at the financing options out there. First off, don’t rush into anything. Buying a new car is a big deal and should be thought through carefully. Take some time to save a few bucks every month. In no time you will have a nice sized down payment. The more you can put down, the less you will need to borrow. Also, don’t switch jobs just before looking for a loan. A solid work record will improve your chances for loan approval.

The Sub Prime Loan

You may try for a Sub prime auto loan. These loans are designed specifically for people with a poor credit history. And don’t forget collateral. If you have good collateral, the lender has security and is therefore more likely to give you a good deal. Anything you own outright or something with enough equity, like your house, can be used as collateral. But, a steady income is still the most vital point for securing any type of loan.

Get a Co-Signer

Getting a co-signer with good credit is another option for obtaining the car loan you want. With the co-signer taking equal responsibility for your loan the lender feels more confident in lending you the money you need. And you will get a better interest rate, too.

Choose Your Lender Carefully

Aside from the type of loan you need, you also need to consider who you are borrowing from. Car dealers are usually not your best choice. They want to sell you a car, usually more of a car than you can actually afford. They are more interested in the incentives they get for securing your loan than they are in getting you the best loan for your circumstances. It is better to get your own loan on your terms!

How to obtain new car loan rates with bad credit

In terms of car loan rates, bad credit is the greatest issue that makes loan application difficult. Many lenders as well as banks are most of the time hesitant in lending money to loan applicants with poor credit history since they view these clients as high risks and customers that are not so reliable. In addition to this, individuals with bad credit history and are now capable of improving their financial situation are also experiencing a hard time in getting a new car loan. This article provides a compilation of advice and tips on how to obtain new car loan rates and car loans for individuals with history of negative credit

Common requirements in applying for a new car loan

In order to apply for a new car loan despite the negative credit reputation you need to meet some of the basic requirements that most lenders ask for. These requirements are important in assessing the customer