Reference Can Help Those with Poor Credit

References

If you are someone with bad credit and who want to apply for car loan, there are additional requirements that you have to comply. One of these requirements is to submit a list of references.

At Auto Credit Express, for the past twenty years we have been providing assistance to those applicants with poor credit scores. We have our website which gives information on research topics which deal with bankruptcy, low credit scores and on the topic being discussed in this article which is about the list of references required in applying for a car loan when your credit is bad.

Needed documents for car loan

In addition to valid driver’s license and proof of insurance, the lenders require the high- risk borrowers who apply for car loan to submit a list of references. These are additional stipulations which are required before approval of car loan.

What is a reference?

A reference is someone whom you know very well. He or she can be your relative, a close friend, a co employee or even a superior or boss.

Usually the required number of references is four but to make your application more credible you can provide more than four references to the lenders.

Contents of Reference Information

The reference must include the name of the person, address, and phone number at home or office.

Permission of the persons you have included in the list must be obtained. They must also be informed that the lenders might contact them for verification to confirm whether or not they know you.

To speed up the application of your car loan, bring with you the list of reference on your first visit to the finance manager for the car dealership.

In Conclusion

Include six names in your list of reference with their complete address and home or office phone numbers. Bring this list when you first visit the finance manager of the dealership. If you do this, the processing of your loan will be done more quickly.

Tip Income Can Help Fix Bad Credit

The reporting of tip income plays a very significant role in determining whether the application for credit will be approved or turned down especially when the FICO score of the applicant is very low.

People who mainly rely on their tip income usually are faced with difficulty when they apply for car loan.

We here at Auto Credit Express are most willing to help people with credit issues to get their car loans approved. We have helped many people with this problem for the last two decades.

These are the lessons we have learned.

Report your Tip Income

People who make extra income through tips usually do not report their tip income in filing their income tax returns. They do this to avoid paying more tax and to save money. But this has a negative in applying for a car loan.

The IRS gives four points on tip income

1. Tips are subject to tax. Federal, Social Security and Medicare taxes are charged on tip income.

2. All kinds of tip must be included in filing income tax return. Tips received directly from customers, tips added to credit cards and tips sharing should be reported in gross income.

3. Tips must be reported to employer particularly when the tip is $20 or more in a month. The federal income and Social Security and Medicare taxes should be withheld by the employer.

4. Record your tip income daily. IRS Publication 1244 is provided by IRS for you to use in making your Employee’s Daily Record of Tips which is to be reported to your employer.

Proof of income

Traditional lenders usually do not do so much in verifyingincome. But for borrowers who are considered as high risk, the W-2 form where all the income is listed, verification is   carefully done.This is done even if the high risk borrower presents documents from banks to support his earned income.

Effect of reported income in loan application

Non- prime lenders only require minimum monthly income and monthly bills. They use these requirements to compute the debt-to-income ratio in determining the budget for car loan. These requirements affect those with tip income in two ways.

1. Very low income reported in the income tax return will lead to the turning down of the loan application.

2. If the income reported is sufficient but if the monthly bills are higher than the reported income, chances are the loan application will also be denied.

In Conclusion

Report your tip income and include it when you file your income tax return if you want your loan to be approved.

Identification Requirements for Car Loans of Those with Low Credit Score

What you should know

A consumer with a bad credit who would like to buy a car is required by the lender to present specific identification documents before the car is delivered to him.

We have been doing this at Auto Credit Express for the more than twenty years. Identification requirements are needed from those who have credit issues. In order to help these people, we designed a website to provide them the detailed information they should know in applying for a car loan.

Be guided properly

When your car loan has been approved by the high-risk lender, there is still a possibility that it can be withheld under some circumstances. The delivery of the vehicle will be stopped if the applicant fails to present or bring his proper identification requirements.

In order to avoid such disappointing situation, the applicant should be aware of the guidelines so that he can bring the car with him on his way home.

Bring your valid identification

You must bring your driver’s license with you to be sure that you will be able to get the car. Your driver’s license is your valid proof of identification. The copy which you have submitted to the salesperson might have been misplaced or lost this is the reason why you should always bring a copy of your driver’s license.

Verification will be conducted

When you applied for car loan, all the documents required including your driver’s license are filed in a folder by the salesperson or finance manager. The driver’s license that you submit must be current and valid. The identification must be issued by the state in which the applicant resides. The address in your driver’s license must also be the address in your car loan application.

The car dealer is obliged to verify the authenticity of the driver’s license with the department of motor vehicles (DMV) of the state where the applicant resides. If the result shows that there is something wrong with the license due to fines or suspensions then the delivery of the car will be stopped

Even with Bad Credit You Can Still Find Dealers in Buying a Car

Our Service

The only way you can solve your problem in buying a car if you have a bad credit is to contact a dealer that engage on in-house financing.

We are aware of this case because through Auto Credit Express, we have provided assistance to many applicants with bad credits since 1992. You can check our website which is purposely designed to help people with bad credit. In our website, you can go to our resources section to get information about credit repair and insurance for credit disability and other related topics on how to get help in finding a dealer if you have poor credit.

Check the Record of the Dealer

There are many other dealers who offer that they can help you buy a car even if you have poor credit but carefully check the record of these dealers. You have to be sure that these dealers are reporting car loans to the credit bureaus before you get a loan from any of them otherwise you will find yourself in the same bad credit situation as before.

Aside from not reporting car payments to the credit bureaus, these dealers are offering used cars which are old and not reliable. Though they provide warranties, these are usually very limited and the coverage is only for a short period of time.

There are also dealers who deal new cars but they avoid the hassle of dealing with customers who have poor credit.

Therefore, the best option is to go a regular new car financing like the subprime auto lenders. In this dealership, the dealers are well trained and they have the right kinds of cars available.

Tips in Buying a Car

The way consumers shop for a car has significantly changed because of the internet. The internet has also helped those with bad credit to find the right car dealers.

There are four reasons why customers should choose the franchised new car dealers over a buy and pay here dealers.

1. There is a larger inventory of cars you can choose from.

2. The cars are new or slightly used cars with lower mileage.

3. The warranties have long coverage which extends until the term of the loan. This would help avoid too much expense on repair and maintenance.

4. The payments are reported to the credit bureaus and this will help build FICO scores.

NADCO Emphasizes Significance of SBA 504 Loans

National Association of Development Companies (NADCO) is the trade association for over 260 of Certified Development Companies (CDCs) of the state. This week, NADCO is emphasizing the constant significance of the SBA 504 loans to the economic recovery of the state.

The Small Business Administration (SBA) in the United States certifies CDCs in order to offer support for businesses by means of the SBA 504 loan program. During the SBA’s National Small Business Week, two CDCs were given credit because of their aim to assist business to expand through financing.

Two CDCs were acknowledged by Karen Mills, the Administrator of SBA, for their exceptional economic development efforts in their respective areas.

The first CDC member acknowledged was HEDCO from Honolulu, Hawaii. HEDCO was recognized as the Large Certified Development Company of the year 2012 because of their track record of 54 projects worth $24.5 million of SBA-certified second mortgages. The second CDC member was Monroe Country Industrial Development Corporation (MCIDC) from Rochester, New York because they gave 24 SBA 504 loans, which funded $16 million worth of SBA-certified second mortgages, to small businesses in the local.

President of NADCO, Chris Crawford, praised the two CDC winners. According to Crawford, NADCO is very pleased with the involvement of HEDCO and MCIDC with small businesses, which become the state’s economy as a whole. Because of HEDCO and MCIDC, they have helped in providing and upholding many jobs all over America.

NADCO’s commercial banking partner lenders have granted an additional $70 billion in small business first mortgages, with the end result of more than $110 billion overall 504 project certified or financed from year 1986.

Moreover, by means of the Jobs Act of 2010, 504 loans can be utilized to refinance current eligible small business debt. SBA expects that as much as 8,000 small businesses may take part in this refinancing program during the present fiscal year.