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Bad Credit Auto Loans – Bad Credit Car Loans Blog
Helpful tips and information about bad credit auto loans, bad credit car loans, car loans after bankruptcy, and first time buyer car loansBrowsing Posts published by admin
There are some new lending programs available with our lending network.
Bad credit really is a broad term. Bad credit is in the eye of the beholder but generally means credit history that has blemishes or is less than perfect. There are almost an endless amount of credit score cards, lenders, financing options, and reasons credit will need to be looked at so it’s important to determine what is the curve on which your credit will be graded. If you are applying for an auto loan and your dealer sends you to a bank that only approves 800 fico scores and above, you must have very good credit to get approved; anything below an 800 score could be considered “bad credit”.
For the purpose of an auto loan, I will set the bar for you. If you have a credit score below 660, have late payments on your car, home loan, or installment loans in your history, or if your debt ratio to available balance is higher than 50%, you could be considered “bad credit” and should consider a program that works with people who have bad credit to secure your next auto loan.
In the last many months the economy has been like a carnival ride spiraling out of control. This has an impact on not only the housing market but the auto market as well. Before you go around screaming bloody murder realize that it’s not the end of the world. Although is more difficult than ever to get an auto loan with bad credit it is still possible if you know what to do and who to talk to. First of all, there are many factors that will dictate how things go so no one can say it will be like this or that. Since it can be impossible for the average Joe or Jane to know who to talk to or what to do, let us handle that part for you.
Once you are matched to a loan officer they will let you know what to expect and tell you how to prepare. If you are properly prepared with everything that your loan officer tells you to bring and a little patience it can go a long way. Please keep in mind that nobody can sell a car over the phone so set up a firm appointment and go down to get your new car.
High risk auto loans, sometimes called bad credit auto loans, special finance auto loans or credit reestablishment loans, are auto loans made to customers that have either no credit history, a FICO score below 650, or other blemishes on their credit report that would cause a conventional lender to turn them down.
Unlike conventional lenders, banks that make high risk auto loans look for a way to get you approved, not for a way to turn you down. At the same time, because these banks loan to people with bad credit, the interest rate is much higher than a conventional loan. Just remember that if you pay this loan on time, chances are the interest on your next loan will be lower and so on until, once again, you can apply for a conventional car loan.
There are several qualifications that lenders consider when approving someone for an auto loan including employment stability, debt to income ratio, past car payment history, percentage of loan to value,(otherwise know as L.T.V.) and your credit score. These qualifications will affect your ability to qualify for a loan with any particular lender and the rate and terms you will qualify for. At New Start Auto Loans, we specialize in helping people with less than perfect credit. We have programs that can assist people with credit scores as low as 350 get another chance to put their finances back on track. We don’t expect you to fit a mold. We’ll consider all your qualifications, including credit score, to help get you the new auto loan you’re looking for.
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If you have a story about your New Start Auto Loans experience or just a story or comment about buying a car with less than perfect credit please share it with us.
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