Car Loans for People with Bad Credit
Car Loans for People with Bad Credit
If you need to buy a new or used car and are concerned that your bad credit history may make it difficult to obtain a car loan do not despair. Car buyers with bad credit can find online auto loan financing companies offering car loans for people with bad credit.
Finding new or used car loans for people with bad credit is not difficult if you know where to look. Traditional lenders are not a good place to start if you have a bad credit history. Traditional lenders follow an inflexible formula for approving loans and if you have poor credit, the majority of the traditional lenders – banks and car dealerships will not approve you for a car loan.
There are used car lots that advertise car loans for people with bad credit however these dealers require you to buy a car from their lot and often the selection is not that great. High mileage vehicles or those with mechanical or body damage are often the only cars found on these car lots. An online car loan for people with bad credit will give you the flexibility of finding and financing the car you want no matter who is selling the car.
How to Find Car Loans for People with Bad Credit Online
People with bad credit histories need to look on the internet for lenders which specialize in poor credit lending. Just search on line for car loans and you will find many online lenders who make car loans for people with bad credit.
It is important to research the car loan websites you are considering doing business with before you make an online application. There are unscrupulous folks on the internet just waiting to take advantage of the uninformed. You should check out who owns the websites. If the websites are registered through a Proxy you should be suspicious.
Finding the owner of a website is not difficult. There are three large domain registrars you can use to search for web site owners: networksolutions.com, register.com, and godaddy.com. On these sites you can click on a WHOIS link and enter the name of the car loans for people with bad credit websites and find information about the owners of the sites. If the sites are owned by Proxy there is no way you can find or contact the owner directly. That should be a red flag. Think twice about doing business with a lender who does not want their identity disclosed.
You can also check with the Better Business Bureau and look for consumer complaints or reviews online to help your confidence that the website you are considering applying with is legit.
A third check you can make is on the site itself. Are the terms of their lending policies clearly explained on the site? Are there live operators who can answer questions you have in addition to the online materials?
What is a secured auto loan?
A car or other vehicle loan is secured by a lien the lender places on the vehicle being financed. The lien is placed on the title of the car. The lien gives the lender the right to repossess the car if the barrower defaults on the loan. Almost all vehicle loans are secured by a lien. Because auto loans are secured online lenders are willing to make car loans to people with bad credit at interest rates generally lower than those offered on unsecured loans or credit cards.
Online Application and Approval Process
The information you will need for the application varies depending on the lender. Most applications will require your name and address and some proof of identify like a social security number. Proof of employment and income for example paystubs or a letter of employment verification or if you are self employed tax returns will likely be required. You will have to provide bank account information and probably details of the vehicle you are purchasing.
The approval process can generally be done quickly, maybe as quickly as one day or two.
Asking lenders for a pre-approved quote of how much the lender would be willing to loan you for the purchase of a vehicle is a good idea. The quote will give you an idea of how much you can spend on a car and will assure the car dealer you are a serious customer. Getting a pre-approval quote will save you a lot of time and disappointment since you will know when you begin your search how much you can afford to pay for your new vehicle.
Auto Loan Refinancing
Many are unaware you can refinance a car loan just like you can refinance a home mortgage. Refinancing a car loan can be particularly attractive if you have a high interest loan and qualify for a lower interest loan.
Refinancing a vehicle loan typically requires no appraisals or inspections. The loan amount is based on amount of money needed to pay off the current loan. The only requirements are that the age and mileage of the vehicle meets minimal criteria and you have the capacity to repay the loan.
Even those with bad credit may qualify for an auto refinance loan. A refinance loan can help those with financial problems by lowering the interest rate and possibly the monthly payment they are paying on their current car loan.
If you have bad credit and need a vehicle there are online lender which specialize in car loans for people with bad credit. It is easy to find these lenders on the internet. Take the time to check out the lenders with which you are considering doing business. You do not want to share your financial information with an online business you have not determined is a reputable.