Bad Credit Auto Loan: A Way to Repair Your Credit Score

Having a car has become a necessity in today’s fast growing world. But to obtain a car you need a good credit score. What do you do when you know that it is not as good as it should be and you find yourself in a tight spot financially? The first thought that comes to your mind is whether you will qualify for an auto loan. And, why would a lender approve loan application of an individual who has a spotty credit score? But the good news is that you can get a bad credit auto loan.

What is a Bad Credit Auto Loan?

The simplest definition is that you can get money for buying a car with a bad credit score. A credit score depends on your ‘creditworthiness’. So when you have a bad credit score, getting an auto loan becomes difficult because a lender thinks that you are unable to repay your debts. Today, owing to online services many lenders offer attractive interest rates on a bad credit auto loan providing the borrower a sigh of relief!

It’s no Picnic!

Getting an approval for a bad credit auto loan is no picnic. It means that when your credit score is not in your favor, it becomes difficult to get approval. But, with the following guidelines, approval becomes easy:

· When your credit score is in question, don’t assume that it must be bad. The wise way is to check it yourself.

· It is the best time to shop around for a bad credit auto loan. Many lenders see borrowers with credit issues in a positive light. So it is important to shop around in order to make the right decision.

· Go online! Various loan options are available online which not only suits your needs but also offer you best interest rates.

· Consider a co-signer. A co-signer provides the security which lenders are looking for in a loan application. Your co-signer’s financial condition should be good in order to compensate for your low score.

Different Lenders have Different Viewpoints

Something that is multifaceted can be looked at from many points of view, with each point of view showing something new.

· You don’t have to worry about your credit score since the lenders are not going to looking at it. Instead, the lenders will look at how likely you will pay off the loan in future.

· The approval rate for a bad credit auto loan is higher than other conventional loans.

· It gives you an opportunity to improve your reputation. If you make timely payments, it can provide you with a chance to build a stronger financial standing.

On the approval of a bad credit auto loan, you will now have the money to buy a new car. You will have fixed interest rate and monthly payments. So now when you make the payments on time, it will not only repair your credit score but also build a good reputation with the lender.

When your credit score is not good, Online bad credit auto financing is the perfect way to buy a car. Apply with EZ Auto Finance and the online loan expert will help you to become a proud owner of your favorite car. Also, it will enable you to obtain no down payment auto loans.

Start Your Journey to Good Credit With a Master Card Credit Application

The time is 2:00 AM. The place is that lonely little alley leading to the nearest convenience store. The person standing in front of you is brandishing a gun in your face. “Gimme your money,” the gunman demands. You frantically search your wallet and pocket for some cash to give to the gloved man. After a few minutes, it becomes apparent to the gunman and you that you don’t have any. Your fists close in on the one thing you always bring with you: your Master Card.

With a sick feeling at the pit of your stomach, you give the gunman a weak grin and offer him your plastic. “Credit is as good as cash,” you whisper, hoping against all hope that the gunman has a sense of humor.

Yes, credit is as good, if not better, than cash. This is why in today’s world, a Master Card can be better than a sack full of money, and why filling out a Master Card credit application is worth its weight in gold.

Dollar Bills and Billing Statements

In theory, one could buy a car or house in cash or with a check. But with the cost of living increasing each year, most people have fallen short of saving up a briefcase or suitcase full of Benjamin Franklins. This is where credit comes into play. By charging certain items and then paying your credit card bill on or before the due date, you can build up enough good credit to convince creditors that you will pay off your auto loan or mortgage. So completing a Master Card credit application makes sense, since good credit is better than no credit.

Emergencies Arise

While you can plan to build good credit, you cannot always plan for emergencies. Perhaps you have never really owed any money to anyone. When you buy something, you always pay in full, by cash or check. When you borrow money, you pay it back the same day. If you were to request a credit report, it would show a clean record…of no credit. Still, regardless of how diligently you try to avoid emergencies during future purchases, things happen. When you lack cash, you have three main alternatives: checks, debit cards, and credit cards. The problem with checks is that they require time to clear. This can create headaches when you do your personal bookkeeping. Debit cards are convenient, but they are accepted in fewer businesses than credit cards. Moreover, they do not let you establish credit. So it is prudent to fill out a Master Card credit application, to prepare for those late night runs to the convenience store, or to fill up our vehicle.

Something for Everyone

The advantages of Master Card credit cards do not end with emergencies. In addition, they offer several features that can make your shopping experiences a treat. They typically have low annual percentage rates, or APR, and annual fees or even none at all! In addition, when you fill out a Master Card credit application, you can choose a card that is right for you. Some cards are ideal for travellers and businesspeople. Others are perfect for students. Still many others cater to people’s interests, such as entertainment. If you want to earn rebates or products via bonus points, then completing a Master Card credit application should be your next step. Master Card credit cards provide perks ranging from movie tickets on films’ opening weekends to personalized cards and $0 fraud liability.

People often link the idea of credit cards to images of never-ending debt. But if a credit card is used wisely after filling out a Master Card credit application, it can provide things that having no credit cannot.

Applying for a Personal Loan With Subpar Credit – What to Know

Anyone that finds themselves with multiple balances on credit cards that have high interest may consider looking for a personal loan with bad credit. This allows them to transfer those balances and take advantage of a lower interest rate to pay off their cards. Sadly, many banks will turn them down due to their credit. Thankfully, there are ways to get a loan that will help them save money, even with that low credit score.

Whether due to financial issues, job loss, or just striving to build a good credit score as a first time user it is difficult to get a loan. The way credit reports work is always changing and there are many factors that affect a person’s credit. It’s important to stay in the know about how to build it, and what your options are. There are likely more options than they think. Here are some ways to apply for and get a personal loan with bad credit.

How to Get a Loan with Bad Credit

Having zero credit or poor credit is a major issue when looking to secure a loan, because that person is viewed as a high risk customer who may default. It’s important to accept that until the credit score is raised, one won’t be able to enjoy the standard lending guidelines offered by big banks.

For anyone that’s been turned down for a loan or who doesn’t want to pay monstrous rates, here are some options:

Consider a Home Equity Line of Credit

If there is enough equity in owned property, it’s possible to secure a tax-deductible, low-interest loan or line of credit that can be used in any way. The only downfall is that many don’t want to tap into their home equity as it puts the property in jeopardy if they can’t repay it. However, with a steady income and a bit of discipline then this can be paid off and is a less pricey option no matter what the credit score!

Try and Apply to Credit Unions

Credit unions are so much better than a regular bank. That’s because they are member-owned. Usually they are founded by people who have something in common whether it be living in the same area, or working in the same profession. They are nonprofit and have a sole purpose of helping members. They offer great customer service and low fees.

Borrow from a Friend

Consider what’s called P2P or peer-to-peer lending. There are even sites online that let a person borrow from someone directly rather than a bank. This form of lending is getting very popular and is quite simple. It’s a winning situation for both investors who want to earn interest and borrowers who enjoy paying lower rates. It’s the perfect solution when looking to apply for a personal loan with bad credit. Current rates with P2P lending are as low as 6%. That’s far lower than most credit cards.

Family Loans

If an online peer doesn’t pick up a loan request, there’s always a chance a family member might. However, it’s more than important to treat a loan from someone in the family just as a professional loan. It should be documented and recorded. A written agreement should show the interest rate, terms of repayment and collateral that’s going against the loan. It should also lay out all the actions to be taken if the borrower does not repay.

What About a Co-signer?

If one is searching for a personal loan with bad credit and they don’t have a family member or a friend that is available to offer the loan, maybe they would consider co-signing. This is when someone who trusts that the borrower can repay the debt would take a chance on them and be a back up to repay the loan should that person default.

Business Credit Application – Commonly Made Mistakes On The Application

I cannot stress the importance of filling out a business credit application the proper way enough. It is the first impression a lender will have of you and your business before they even get to meet you face to face. It is critical that you fill out an application that will please a lender enough to want to do business with you.

If you want to increase your chances of being approved for a loan or credit card, do not make these common mistakes when filling out a business credit application:

1. Not Following The Directions – Have you ever seen the small print at the end (or sometimes the middle) of an application normally before you have to sign or initial a part of the application? Make sure you read those directions and areas very carefully.

Sometimes there is a part in the directions that says, “Only fill this portion out if you are in ____ state.” If you fill out that section and you are not from the state it says, you are demonstrating that you did not take the time to read the directions. The chances of you being approved for a loan that requires you to read a lot of paperwork, will be slim to none.

2. Leaving Areas Blank – This is a common misconception about filling sections out on a business credit application. You are told to skip something if you do not know or do not remember the information you need to fill out. I have heard lenders say that they will not consider a business credit application unless it is complete.

The lenders do not want to (and should not have to) waste their time and energy on some wild goose chase to find out any information you do not know or that you neglected to write down. Do your homework and fill out any forms properly.

It is completely okay to ask if you may leave the building to call someone who can help you answer the portions you do not know.

3. Not Attaching Required Documents – There are lenders that require you to attach a copy of your business plan or licenses to the business credit application form. If you are considering going into various lenders to apply for a credit card or loan, make sure you bring along copies of these two things. Not all lenders require them for the business credit application process, but it is better to be safe than sorry.

So, when you are filling out any type credit application for your business, make sure you do not commit these common mistakes.

How Can I Buy a Car With Bad Credit?

According to an article in consumers affairs;

In general, it is better to go with a bank or an auto financing lender rather than the car dealership down the street that is offering a “buy here, pay here” deal. If you do wind up with a high interest rate on your car, work on rebuilding your credit score so that you can eventually refinance.

If you suddenly find yourself without a car you might be asking, “How can I buy a car with bad credit?”, well, You DON’T! I know not having a ride can be a problem, like how do you get to work, or what if you want to go out? Well as far as getting to work goes, see if a work colleague lives near you and chip in on some gas for a ride. As far as getting out from time to time, there’s always Uber.

You want to give yourself a few months to save up some money and pay cash for a vehicle until you can get your credit to a point where you can get a 6% or less interest rate. Your choice of vehicle will be better and the total cost for the vehicle will be a lot less.

Another problem with buying a car with bad credit that most people forget is car insurance. Your insurance premiums unfortunately are also based on your credit score. The combined monthly cost of your car and insurance could be challenging. Again, waiting until you have a good credit score will save you on insurance as well.

Here is an example based on $35,000.00 vehicle purchase at 20% versus 6% on a 5-year loan.

$35,000.00 at 20% interest you will pay over $15,000.00 in interest at 6% you will pay approximately $5,000.00 in interest. Quite a difference.

Your total cost for the vehicle is about $15,000.00 less in interest at 6%, and your monthly payment is approximately $250.00 less per month!

OK let’s play a little game, what if you took that $250.00 per month that you’re NOT paying in interest and invested it each month over the same 5-year time period with a 6% return?

Well you end up EARNING $3000.00 instead of PAYING $15000.00. I’d say that’s a pretty good argument for doing everything you can to avoid a high interest car loan.

Instead, put ALL your resources into getting your credit fixed. This will put you in to position to buy at a good interest rate with minimum money down. This will save you a ton of money and you won’t regret it!

Buy a new car or even a used car is never a good investment, but one you can’t avoid. Buy a car with bad credit, as you can see, is yet a worse scenario. Make sure you do whatever it takes to avoid this costly mistake.

If you considering purchasing a car in the near future and have some credit challenges be sure to check with one of our Credit Experts to see how you can improve your credit for the best interest rates and no money down options.

Personal Loan and Its Different Advantages

A personal loan is an unsecured loan which is offered to a consumer for catering their various personal needs such as the renovation of a house, marriage, home appliances, buy vehicle amid others. This is offered after verifying one’s ability of paying especially the income source and also according to their credit history. A nominal processing fee will be charged and the sum as per a person’s paying ability will get credited to their account. In fact the loan payment is made via fixed installments which also includes interest and for fixed time periods. The icing on the cake is these days personal loans are a smart choice as one do not require going through a lot of formalities and tedious paperwork. Most of the financial institutions and banks offer personal loans today and the rate of interest is also quite reasonable.

Discover the different benefits

• Available easily- to get a personal loan is no longer a challenging affair. It is offered by almost all financial institutions and banks at a reasonable rate of interest. Compared to other loans it is convenient and easy to get

• No middleman or agent involved- for availing a personal loan one will not require taking the help of an agent or a middleman. This will avoid unnecessary expenses and delays. A person can approach the financial institution or bank for the purpose directly

• Unsecured loan- this is indeed an unsecured loan. Here no collateral security is needed for availing the loan. In fact, all that is needed is one’s ability of paying back the money.

• Less processing time- because it is accessible devoid of any guarantee or security the processing time needed to get this is naturally less compared to other loans

• All purpose loans- in this form of loan it is not compulsory for a person in specifying the reason for which they will be using the money.

• Minimum paperwork- to get a loan will not need any asset verification or other forms of certificates and proofs which include ample paperwork as none of one’s property is mortgaged

• Offers and schemes- different financial institutions and banks keep announcing offers and special schemes on personal loans, especially for the professionals such as architects, doctors, chartered accountants and the like

• Amount and tenure- these loans generally are provided varying from Rs 15000 to Rs 20 lakhs differing from one bank to another. The repayment can be made through EMIs

The bottom line is, rather than borrowing money from a credit card it is always better to choose a personal loan as the rate of interest is comparatively lower. So reap its utmost benefits.

Variables That Turn You Into A Bad Credit Applicant

Well, here are some guidelines that will help you understand why lenders consider some applicants as too risky while others are suitable and qualify for the loan products they need.
There are basically two factors that describe why people are good or bad credit applicants. Yet, these factors can be divided into further categories. But, in order to give a systematic idea of what makes a borrower a bad credit applicant these two particular variables need to be identified: Credit Assessment and the applicant’s background.

Reliability In The Eyes Of The Lenders

What lenders are desperate to know is whether the applicant will be able to repay the loan. They resort to all kind of measures in order to make sure that the money is fully paid off and they compensate with higher interests any probability of default. The reliability of the applicant is thus, what makes it a Bad Credit Applicant or a Good credit Applicant.

How is reliability measured? Simple, by means of credit assessment. Normally when you know someone you plan to work with, you share simple things first and then you keep increasing their responsibilities as your confidence in them grows. In the financial market, there is no room or time for that and thus, there are credit bureaus that gather all the experiences of different companies with a particular person and put them together into a credit report.

Credit Assessment Explained

Credit Assessment is done through a credit report and a credit score or rank. This report includes all your past repayment history along with other details on your financial life. By means of comparing your situation with other predefined states and through several variables that can affect negatively or positively, your credit score is calculated and then included in your report.

The report has pertinent information that can be of aid to lenders and financial institutions to know what your behavior will be if they decide to grant you a loan. It may sound unfair to you to be judged by your old mistakes but truth is that statistics show that people don’t tend to change the way they face their financial obligations and that the risk of default is higher for those that have defaulted in the past.

The Applicant’s Background

There are other details that will also be taken into account by the lender when the time of deciding whether to approve your bad credit loan or not has come. The type of job you do is an important factor for example, because there are some jobs that are more risky than others and thus, the terms of the bad credit loan need to be modified to include this additional risk. Also the job type will give an idea of what your income is but also what it will be in some time and whether it is stable or not. All this information is essential for lenders to analyze your application.