Auto Loans for a New Car – Prepare Yourself for a Buying New Car
Every American dreams of the amazing invention called car. The car dream is passed over from one generation to another. Everyone wants to get behind the wheels of a brand new car. Truly, buying a new car is the perfect dream.When you set out to own a new automobile, auto loans become a necessity. This is because most new cars cost a pretty penny. Also, most of us don’t have ready cash to incur such an expense. If you are looking for a new auto loan, this comprehensive article can solve your problem.Best Time to buy a CarMost experts will suggest that it’s best to buy a car in the last quarter of the year. But, when you need a car, you need a car. You cannot wait till the year-end shopping season to buy what you need. The best time to buy a car is when you want it.Why Auto Loans for New Cars are LESS EXPENSIVE now?There are many lenders and auto financing companies who offer year-round great rates on new car loans. This is because of the constant cut-throat competition in the auto financing market. You can easily get approved for a low rate auto loan if you follow the following tips.How to prepare for buying a New Car with Auto Loans?Financial – WISEEvery great decision begins with planning. When you even decide the color of your new car in advance, why not plan your budget. A wise car buyer never discounts the importance of planning. Calculate your income and expenses. Once you know the amount that you can spend on monthly payments, you will see things in a better light. It will help you to decide on the loan amount and the car as well.Credit ScoreGetting a good score was important in school, it’s important even today. Understand that a better credit score will ensure better rates. If you have bad credit history, try to improve it before applying for a new car loan. Also, don’t forget to check your credit report because it may contain errors.Down Payment to avoid Dangerously High RatesDown payment is the wonderful life-saving drug in the world of auto financing. Paying 10% of total car loan cost as down payment can work wonders for you. Don’t worry if you don’t have money to make down payment. Use your old car as a trade-in. But, make sure that the car doesn’t have any lien because it will make matters worse.When you buy a new car, car manufacturers offer cash rebates. You can use that money as down payment so that you don’t have to lighten your wallet. E.g. If you buy a new 2013 Ford Fiesta in Seattle, the company offers $1500 in cash-back scheme. If you buy a Chevrolet Camaro ZL1 in the same city, you will get $1000 as cash rebate.Can you find a Co-signer?Finding someone with a good credit score can be ideal for any auto loan. As the new car loan amount is more than the amount of financing a used car, lenders want to ensure safety. They feel more secure when they have a co-signer in picture.Choosing the LenderUnderstand your situation before filling the new auto loan application form. It will help you in choosing the best auto loan program. If you are a first time buyer, many lenders as well as car manufacturers can offer you an auto loan under first time car buyer program. If you are college student, there are many college discount programs available.A bad credit borrower must ensure that he applies at a sub-prime lender only. Go for a lender that offers auto loans to low-income car buyers if income is a problem for you.When you apply for auto financing for a new car, you have many options for getting car financing:
1. New Car Dealerships who offer financing
2. Online Auto Financing Companies
3. Auto Lenders
4. Banks
5. Car Manufacturers’ Financing CompaniesConsider every option so that you choose the perfect auto loan program with lowest interest rates and flexible loan terms. Trust only those lenders who are reputed. Also, ensure the safety of the websites before filling the online auto loan application forms.Take your time in choosing an auto loan for your new car. If you choose an affordable car loan, it will help you in getting better rates in future.All the best for choosing the best!
Bad Credit Auto Loans – How to Get Guaranteed Approval Even With Poor Credit Score?
Everyone wants to fulfill the great American Dream. Buying a comfortable automobile is a part of it. You can make living in America even more pleasurable by buying your very own car.When it comes to cars, auto loans are important. But, do you think your bad credit will make it impossible to get guaranteed approval on car loans? You are worrying for wrong reasons because you can get a car with bad credit. Here’s how you can convert your slim chances of getting a bad credit auto loan to instant approval.Wrong: Filling Applications Right AwayYou must never fill the auto loan application as soon as you feel the need of getting car finance. Actually, there are several things that you need to do before applying. We can divide every task related to getting guaranteed approval on bad credit auto loans into Pre-application tasks and Post application tasks.PRE-APPLICATION TASKSKnow Your Credit Score/Payment HistoryNo matter the type of loan, every lender will want to know how you pay your debts. He will judge the credit risk associated with you by understanding your credit report and payment history. So, it is important to know it and improve it beforehand.We know that credit bureaus mess up credit reports. So, get your free annual copy from Annualcreditreport.com. Analyze the entries and look for erroneous transactions. Under the Federal Law, you can easily remove wrong entries from your report if the credit bureaus cannot prove its precision. Removing wrong entries can definitely improve your credit score and place you in a better place than before.Set Your BudgetCars are expensive and if you don’t calculate your budget, you may end up paying more. When it comes to making huge commitments like auto loans, you must know your affordability. It will help you avoid an unmanageable car financing program.Calculate your budget by considering the auto loan term. If you want to opt for a longer term, estimate expenses of certain future events like wedding, college expenses, home loans, etc.Save Money for Down PaymentDown payment is important for lenders. If you can put a huge sum as money down, it shows your financial strength. The lender will consider you as a low risk credit borrower. It will also reduce your auto loan amount.But, we all know that getting even 10% of the car cost can be very difficult. So, start saving money for down payment from now.Search for a Co-SignerYour bad credit score takes a back seat when your lenders see a co-signer. Someone with a good credit score and decent debt-to-income ratio can work magic for your car loan. Finding a co-signer may take time and that’s why it’s better to start the job now.Check Your DocumentsWhen you have had financial issues in the past, the lender will be more interested in your income proof. Keep your current pay stubs and/or tax return statements ready. You can even ask your employer to provide an Employment Certificate. Arrange all your utility bills receipts because they can be used by the lender to ascertain your debt repaying ability.Search for Sub-prime LendersWhen you have bad credit score, apply with lenders that have copious amount of experience in dealing with credit issues. Your approval chances will improve when you apply with a lender that offers bad credit car loans. Also, you will save time by avoiding stringent banks and other traditional financial institutions.Make use of the internet to search for online auto financing that offer affordable car financing options. Most companies have a history of working with bad credit borrowers. So, don’t forget to consider them.POST APPLICATION TASKSAnalyze and Compare Car Loan QuotesWhen you apply with several lenders, you will receive many bad credit auto loan quotes. Analyze and compare each of them on factors like interest rates, monthly payments, APR, down payment, etc. Also, consider other aspects of the car loan programs like loan term, conditions, fees and penalty.Negotiate with the LenderAs you choose few auto loan quotes, make sure you negotiate with the lenders. Sign the bad credit auto loan contract with only that lender who negotiates and offers you a better deal.Choose a Reliable Car among the AlternativesIt’s always better to choose a car after securing the car loan because lenders may ask you to choose the car from a pre-decided dealer/s. They may even give you a pre-approved budget. So, select the car later and avoid any wastage of time and energy.Don’t forget to get the car inspected from your trusted mechanic. It’s important to check the car title and Vehicle History Report because once you sign the papers; you cannot do much.So, that’s how you can buy a car. Once you buy the car, keep making regular payments so that it improves your credit score.If you follow these tips, getting a car loan and making payments won’t be difficult for you.Wishing you instant approval on your bad credit auto loan!
Three Types of Credit You May Not Know You Have
Every business has three types of credit: the Consumer Credit of the business owner, Bank Credit, and Business Credit.Most business owners are familiar with their consumer credit. This is credit that reports to the consumer credit reporting agencies TransUnion, Equifax, and Experian. Scores range from 350-850, and credit is linked to the owner’s Social Security Number.Most business owners don’t know that banks have their own internal scoring system for businesses. This scoring system is known as bank credit, or a bank rating.
This score is based on how you manage your business bank account. Having $10,000 or more in your bank account will give you a good bank credit score.A business also has its own credit profile, known as business credit. Business credit reports to the business credit reporting agencies, Dun & Bradstreet, Equifax, and Experian. Scores usually range from 0-100, and credit is linked to the business EIN number, not the owner’s SSN number.Business credit provides a lot of benefits. For one, it has no link to consumer credit, so no personal credit check is required, and accounts don’t report to the consumer agencies.No personal guarantee is needed in most cases, so you won’t be personally liable for your business debts. Also, credit limits are 10-100 times higher than with consumer credit.With consumer credit, just because you have an SSN doesn’t mean you have an established credit profile.To get a consumer credit score and profile, you first must: get approved for accounts that report to the consumer reporting agencies, use those accounts, and pay your bills for those accounts, then and only then will you have an established credit profile and score for your SSN.Just like with consumer credit, just because you have an EIN doesn’t mean you have an established business credit profile and score.To get a business credit score and profile, you first must: get approved for accounts that report to the business reporting agencies, use those accounts, and pay your bills for those accounts, then and only then will you have an established credit profile and score for your EIN.Entrepreneur.com reports that 90% of business owners know nothing about business credit. Business credit is usually reserved for established businesses, or those that meet a certain criteria for approval, and often is used by companies big enough that they have a CFO.You can build business credit and get a good score QUICKLY! Having business credit increases the value of your company, and you won’t need financials or collateral for approval.Any business can actually establish business credit, but the key to success is knowing the formula for success, knowing what steps to take and in what order.
Business credit isn’t highly promoted in stores, or with cash credit sources, so usually only larger businesses take advantage of it.Credit issuers and lenders like it this way, because usually those larger companies are more established and have less of a risk of default, although it’s not actually the size of your company they look at for approval.To get approved your business must pass a test that shows the credit issuers and lenders that you are credible, no matter your size.If you pass this test and are credible in their eyes, you’ll be approved for business credit. Many times you get approved automatically by their computers without someone manually reviewing your application.Business size and how long you’ve been open aren’t really the driving factors for your approval, but passing this test is.This means even if you just opened your doors yesterday and have little or no revenue, you can still be approved with most business credit sources… as long as you pass their test.You must have a physical business address, or use a virtual address. You’ll need to have a business phone number, preferably a toll free number, and it’ll need to be listed in 411.You’ll need a business fax number and you should have a professional email address, and website. You must have the proper licenses for your business, industry, city, county, and state and you need an EIN, entity setup, and bank account.There are actually 20 items on this test that will be reviewed, but you now know some of the most important factors that credit issuers and lenders review.When establishing business credit, there are actually three types of credit you can get: vendor credit (starter accounts that offer Net 30 terms), store credit (revolving credit cards available in retail stores), and cash credit (revolving credit cards such as Visa and MasterCard that card issuers or banks approve you for).The biggest mistake entrepreneurs make when building credit for their business is that they try to apply for store or cash credit first, and skip vendor credit.But stores and banks will NOT approve a business owner for credit until their EIN credit profile and score are established. If you try to apply for store or cash credit without an established business credit profile and score, you’ll be denied… 100% of the time.You must get approved with vendors first who offer Net 30 terms. After you use those accounts and pay your bills, the accounts will get reported to the business credit reporting agencies.Then and only then will you have an established business credit profile and score. Once it has been established, you can begin to be approved for store revolving credit.You should seek out vendors who will approve a business for credit, even if none is established yet. There are actually many vendor sources who are well known for this: Uline, Quill, Reliable, and Laughlin and Associates, just to name a few.To start business credit, you first should get approved for accounts with these vendors.Some will require you purchase their products first and some will have you make three orders and pay before they’ll issue you a line-of-credit. But all of the sources I listed will approve a brand new business, even if you have no credit now.You’ll want to insure you have a total of five payment experiences reported before you even think of applying for store credit. A payment experience is the reporting of an account to a business reporting agency.So Quill, for example, reports to both D&B and Experian. That means that one account will count as two payment experiences. Laughlin only reports to Experian, counting as one payment experience.Once you have five payment experiences reporting, you can begin to secure revolving store credit cards for your EIN.KEEP IN MIND, all applications will ask for your SSN but you do NOT need to provide your SSN on the application. If you do supply your SSN, they WILL pull your personal credit… and if it’s bad your application will be denied.When you leave the SSN field blank, they’ll pull your business credit. Once they see that you have business credit established and at least five payment experiences reporting, then you’ll start to get approved for store credit.Most major retailers do offer business credit as well as consumer credit. Staples, Office Depot, Home Depot, Lowes, Target, Walmart, Costco, Sam’s Club, Radio Shack, Best Buy, BP, Chevron, Amazon, Shell, and most other stores, offer business credit.Some sources like Home Depot might have more stringent approval requirements and want to see big revenue and three years in business for approval of no personal-guarantee credit. However, sources don’t have these requirements, if you have credit established for the business.WARNING!!! Do NOT put your SSN on the application. Do NOT apply for revolving store credit without having at least five payment experiences reporting to the business credit reporting agencies. If you do either of these, you’ll be denied or you’ll have to give them your personal guarantee.Once you have a total of 10 payment experiences reported to the business bureaus, then you can start to get cash credit cards. Cash cards are those issued by Visa, MasterCard, even AMEX, and are cards you can use anywhere, not just cards you can only use in one store.It’s recommended that at least one of your 10 payment experiences has a high limit of $10,000 or more before applying for cash credit. Dell is a revolving store source who regularly approves business owners with established business credit for an account with a limit of $10,000 or more.Key Bank and Home Depot are two sources that offer revolving cash credit cards you can use most anywhere; many banks offer these also.When you follow these steps, your business can have an established credit profile and score.This profile and score can then be used to get you credit in your business name, regardless of your personal credit, and without a personal guarantee.You’ll want to continue building business credit, applying and getting more credit, using that credit, and getting approved for higher and higher credit limits.