Processing a Car Loan with Bad Credit

When your car loan is approved despite having a bad credit, what are the things that you should expect?

The fact is, consumers with credit issues have no idea what comes next after their car loan is approved.

Here at Auto Credit Express, we have been assisting people for the last twenty years on how to buy a car even with low FICO Scores. Our website is available for any topic they want to research on such as repossession and how to process car loan with bad credit.

Application Process

In buying a car, you cannot instantly pick a car you like. The car dealer will first contact you to have an interview with the finance manager. After the interview is completed, your application will be forwarded to different lenders that suit your credit profile.

The finance manager will have to wait for the lender’s notification before you can choose a car you want.

Verified Information

The lender carefully checks your income and pay slips, your length of employment and W-2 wage statements of previous years for your work and income history. Any other necessary information to qualify your car loan application may be required by the lender such as your expenses so that he can compute accurately the amount you are capable of paying monthly.

Credit level

The lender after having checked your credit scores and other factors such as job stability and credit history will then place you in a credit program tier. This will determine the interest rate, the term of payment and the down payment required. The car dealer then will be notified by the lender in the form of payment call.

Your car choice

The finance manager once he receives the payment call will check the car inventory to determine a car that fits your paying capacity. For newer cars with lower mileage, the term of payment is longer and the interest might be lower.

Wrong car choice

The problem arises when for example you choose a 5 year old pickup with a mileage of 70,000 miles. Even if the car is in good running condition, the problem is the term of payment is shorter and the interest rate is higher. In other words, the car budget may not fit your choice. Therefore, you have to make another choice.

In Conclusion

In choosing a car, it is important that your choice fits your budget. Your goal is to establish a good credit and not to get the car that you dream of.

How do Subprime Lenders Deal with Self Employed?

Important points

You are your own boss if you are self-employed. What is the challenge in applying for a car loan when you are self-employed and your credit score is bad? Surely, you will face a problem to convince the lender to approve your car loan.

Here at Auto Credit express, we provide assistance to borrowers with credit issues. This is the task we have been doing for the last twenty years. In our website, we provide necessary information to help people find a dealer for the car they want to buy.

Problem in Income

People who are self-employed and with bad credit think that the only option to buy a car is through the buy here pay here and nothing else. This is true if you are not reporting all your income in filing your income tax return. It can reduce the amount you pay for your taxes but it will give you difficulty to get a car loan because this will result to a low FICO score which might drop below 640.

Income Verification

Therefore if you intend to make a car loan, you are advised to report all your income in filing your income tax return. This is the only way for you to get a valid proof of income which subprime lenders require because they consider you as high risk borrowers. Through the professionally prepared tax return, the lenders can do income verification before giving approval to your car loan. If your income does not appear in the list of tax return, then they will conclude that your income does not exist even if you provide him with bank records.

Requirements needed by Lenders

The minimum monthly income is required by most high-risk lenders. This income is verified through the wage statements and tax returns to qualify a car loan. The debt-to income (DTI) ratio is also required to determine the budget for car.

The subprime car lenders typically require a minimum income which ranges from $1,500 to $1,800 monthly or $ 18,000 to $21,600 yearly.

In Conclusion

If the borrower has poor credit and his income is not reported properly and accurately which results to high debt to income ratio, chances are the car loan will be denied.

State House Faces Short-term Lending Program House Bill 2191

There is a kind of short-term lending program being considered as of the moment by the state House. The lending program involves a 14-day, $300 loan together with approximately $42.50 of fees and interests.

The House Bill 2191 is dubbed by supporters as a consumer protection measure. In contrast, it is considered as a bankruptcy by design by opponents because some banks in the state are offering two-week or payday loans with 369 percent of percentage rates every year.

Last May 8, the meeting was held and one of the members of the House Consumer Affairs Committee who voted in support of the bill was State Rep. Gene DiGirolamo. However, although he voted yes, DiGirolamo still have a few worries about it and is still contemplating whether or not it suits the people of Pennsylvania. He added that voting in favor of the bill does not indicate right away that it is supported by a representative.

The lending bill was co-sponsored by State Rep. Frank Farry. He said that there are worse loan programs offered through other countries and states than the bill.

According to Online 1-Hour Loan, a company based in California, the bill links borrowers to banks that offer fees ranging from $15 to $25 every $100 loaned for 1 to 15 days or more. Consumers can loan up to $1,500 and should earn a minimum of $1,000 every month. In addition, the company said that bad credit is not a hindrance in getting a loan.

On the other hand, there are also critics of the House Bill 2191. One of them is the Keystone Research Group.

Moreover, the Navy-Marine Corps Relief Society feels the same way. In fact, it thinks the bill will be mostly risky to retired sailors, Marines and their respective families.

Also, credit counselor Joan Reading said that any kind of short-term lending is opposed by the Credit Counseling Center of Bucks County.

Most Asked Questions About the VA Loan

VA is a popular loan program for United States citizens, every week, the agency receives plenty of questions from their customers and this article composes the some of the most frequently asked questions by clients.

Many Americans inquire the agency about tips on how to cope up with bad credit. Well, this is what you should do: though this is might pose as a problem for many, in order to qualify for the VA’s loan the military household must have a FICO credit score of 620 or better. But if the individual who is applying for a loan has ever filed bankruptcy in the past, then an arrangement can be done with the agency.

The agency does not turn its back on poor credit clients; rather they become a strong partner with these citizens and help them back on their feet. The agency aids these applicants to qualify for the loan and repair their credit status.

Another query is about a spouse or a family member that has bad credit. To make it easier for the household, it is advised by the agency for a solo borrower to surface instead of having a co-borrower that has a bad credit. If ever you want to have a co-borrower then your credit scores must add up to at least 620. It is possible to have a solo borrower obtain a loan but he must be able to qualify all the criteria of the agency and afford the loan payments.

If you are wondering what you can purchase with a VA loan then you should know that it can be used to buy a primary residence. A vacant lot and other business or commercial related properties can also be bought with the loan. You can even buy a newly constructed property, but this is limited only to some land owners and money lenders.

So now, how much is a VA loan? VA loans usually just caries with the market. If you are an applicant you can usually get the loan interest rate before the approval process.

Poor Kids Get Robbed of Private School Credit

The credit loan for poor children supplied by the federal government is being abused by some affluent families. The New York Times has unmasked this sully reality of breach in the tax education credit. The main intention of the credit was to supposedly provide for the less fortunate citizens to allow their children to avail private education. However, it has been a proven fact that it is now an avenue for parents of children who had availed private education to get the benefit for their children.

Only kids who have enrolled in public schools and the law were specifically crafted to differentiate “enrolled” and “attended”. According to the State Representative of Georgia, Mr. David Casas the law specifically used the word enrolled and not attending so that the scholarship could be availed by private school students.

In one of the meetings, parents were dubious of the idea and raised the idea as a scam. Once, a concerned parent questioned the law if it would qualify a student that has been attending a private school but also he enrolls in a public school just to avail the benefit. The child will be enrolled in two schools but he is attending the private school, the law only required the recipient to be enrolled in a public school and it said nothing about attending.

Though Mr. Casa reassured the parents that the program was not a scam, it is very clear that this requirement is a terrible idea and will blow up in the company’s faces in the near future. Currently, there are many programs like this that is operating across eight different states in the United States. The program costs $350 million of the states’ funds which has been paying for the education of students who attend religious schools and scholars for football.

The headmaster of the Covenant Christian Academy based in Cumming, Ga, Mr. Jonathan Arnold shares his dismay as he reviewed the names of current students who availed the scholarships.