March 11, 2010 at 3:20 am
- Posted by: admin under Refinance Car Loan
- Tags: Auto Dealers, Auto Loan After Bankruptcy, Auto Loan Lenders, Bankruptcy Credit, Car Loan After Bankruptcy, Car Loans After Bankruptcy, Co Borrower, Co Signer, Credit Applicants, Credit Rating, Credit Score, Enough Money, Establishing Credit, High Interest Rate, Loan Request, Loans After Bankruptcy, Lower Monthly Payments, Prime Rate, Secured Credit Card, Timely Payment
Getting approved for financing following a bankruptcy is not easy. Because a bankruptcy can reduce your credit score by 100 points, re-establishing credit is essential. On the contrary, lenders are not very eager to extend a new line of credit to persons with bad credit. Furthermore, getting a good rate on a home or car loan is nearly impossible. Since auto dealers have special programs for bad credit applicants, getting a car loan after bankruptcy is doable. Here are five ways to improve your chances of getting approved.
Apply for Car Loan Six Months after Bankruptcy
Applying for a car loan immediately following a discharge is unwise, especially if the auto loan was included in the bankruptcy. Besides, the majority of auto loan lenders will not approved the request so early. If your loan request is approved, the lender can charge an interest rate up to 22%.
When possible, hold off on financing a new or used car. Instead, wait at least six months. During this time, apply for a secured credit card and make timely payment. This will improve your credit score, and qualify you for better rates.
Save Enough Money for a Down Payment
If you can’t wait six months before financing a new or used car, make an effort to save money for a down payment. A down payment reduces the total amount financed. Even with an outrageous interest rate, a down payment will contribute to lower monthly payments.
Using a Co-Borrower When Applying for Auto Loan
Piggybacking is one way to get approved for a low rate auto loan after bankruptcy. To benefit, the co-borrower or co-signer must have an excellent credit rating. Some auto loan lenders use the highest credit score on an application to determine interest rates. If your co-borrower qualifies for a low prime rate, you benefit.
Fix Your Credit, and then Apply for Car Loan
If you can’t find a co-borrower, and don’t want to pay a high interest rate, be determined to fix your credit. Immediately following the discharge, apply for new lines of credit. This could include a secured credit card, gas card, store charge account, etc. Make on-time payments and keep the balances low.
Take Advantage of Sub Prime Auto Loan Lenders
If your auto dealer or personal bank will not approve your auto loan request, apply with a sub prime lender. These loans are purposed for individuals with a low credit score. This includes applicants with a recent discharge, foreclosure, repossession, etc. Loan rates are higher on sub prime loans. Nonetheless, they can help you rebuild your credit.
By: Carrie Reeder
December 10, 2009 at 5:27 am
- Posted by: admin under Refinance Car Loan
- Tags: Annual Percentage Rate, Auto Loan, Benefit, Best Bet, Car Finance Rate, Car Loan, Credit Auto, Credit History, First Auto, Flexible Repayment Options, Hidden Charges, Instant Approval, Interest Rate, Interest Rates, Loan Benefits, Loans, Lower Monthly Payments, People, Perfect Match, Refinance Loan
There are many reasons why people take a refinance car loan. You may be unhappy with your current loan. Your monthly payment may be too high for you to manage. In this case, opting for a car refinance may be your best bet. There a few benefits of getting a refinance that I will mention below. There are also some things to be aware of in a refinance car loan.
Benefits Of Taking A Refinance Loan
The main benefit of taking a these loans is that you can save money on your monthly payments. The biggest attraction is the lower car finance rate. This is probably the only reason we need to take such a loan. Lower interest rates mean lower monthly payments. You can either pay off your loan faster or even extend its term..
You will find many companies offering to refinance your car loan. It may seem difficult to choose the right one. You just need to consider certain basic things. Once you do that, you can select the best company.
You should first see that the interest rate is lower than your first loan. You must also take a look at all the terms and conditions to make sure there aren’t any hidden charges. Once you are certain that you will save money on your monthly payments with a particular company, you can go ahead and take a refinance car loan from them.
Some companies offer additional benefits for customers. You can get a no credit auto loan which is very useful if you have no credit history. The rates will be slightly higher for this kind of loan but it still works out to be beneficial for you.
Things To Look For Before You Apply
Most of the companies give you instant approval on your car loan refinance if you apply online. They even offer you flexible repayment options. Added to this, if the annual percentage rate they give is lower than your first auto loan, you have found your perfect match.
One thing that you must do is compare the rates offered by different dealers before you select one. The reason we take a refinance car loan is to save money on our monthly payments. Do not make any decision in haste. Choose your car loan refinance company once you are certain that you are getting the lowest rate from them.
November 28, 2009 at 8:25 pm
- Posted by: admin under Refinance Car Loan
- Tags: Amount Of Money, Bad Credit History, Car Loan, Car Loans, Credit Score, Dream Car, Financial Institutions, Installments, Interest Payments, Kevin Clark, Lenders, Loan Repayments, Lots Of Money, Lower Monthly Payments, Outgoings, Rate Loans, Rate Of Interest, Refinance Loans, Suitable Deal, Tuition Fee
You bought a dream car few months ago. But the car is now consuming lots of your money that you have to pay towards installments of the loan you took for buying the car. Well, there is a way out from the trouble. You can opt for Refinance Car Loan, which are designed especially for saving you lots of money on the loan repayments each month. The saved money can be put to use for any use like paying for child’s tuition fee, meeting any expense or paying off some old debts.
You are able to save good amount of money because you now take a new loan that is of lower interest rate as compared to high rate on the existing car loan. It could be that you had a bad credit history at time of buying the car through the loan. So, the lender offered you the loan at higher rate.
However, as you have already made many payments towards the loan and so, now your credit score has improved a lot. This means that now you can borrow money under refinance car loan at lower interest rate. In turn, it implies that you would make lower monthly payments. Your monthly outgoings will then be reduced substantially, saving you money on interest payments.
If you had a bad credit history, and your credit score is low, still you can find refinance car loans at comparatively lower rate of interest as the market rate may have fallen substantially or a lender may be willing to refinance your car at lower rate. So, it is advisable to first explore the refinancing opportunities in the market.
Online lenders are known for competitive rate loans and so, you can find refinance car loan at comparatively lower rate as you desired. Prefer these lenders over banks and financial institutions. Apply for rate quotes of the lenders. Make an extensive comparison of such lenders to sign a suitable deal.
By: Kevin Clark