Four Tips to Get the Best Auto Loan on Poor Credit
Four Tips to Get the Best Auto Loan on Poor Credit
If you have a poor credit, it does not necessarily mean right away that you cannot purchase a car or get an auto loan. Just like other things, the degree of “poor credit” can differ from one person to another. For instance, if your credit score is in the middle or the average, a few lenders may still consider giving you a loan, but others who have a different measure will probably consider it a risky action.
According to senior consumer advice editor of Edmunds.com, Phil Reed, since several auto loans have a rate of 18 percent and 20 percent, it is important to look around different lenders. Moreover, Jack Tracey, executive director of National Automotive Finance Association, agreed that looking around is important.
Tracey added that it was more difficult to get a nonprime auto loan in the early months of this year and in the latter months of the previous year. The following are four tips in looking for the best subprime auto loan.
First, consumer attorney Yvonne Rosmarin said to have a companion when looking around. Besides having another set of eyes and ears, your companion can also act uninterested or doubtful of the loan terms.
Second, according to Van Alst, get a loan with the lowest annual percentage rate and short period of time.
Third, senior researcher for the Center for Responsible Lending, Josh Frank, said that there are lending contracts packed with unnecessary goods and services and nonprime buyers usually come across these. Frank added to never let the loan be subject on buying add-ons, like extended warranties, after-market services, or insurance.
Fourth, when financing through a dealer, check that the terms are final and not conditional. In some cases, buyers are informed after days or weeks that their monthly payments or deposit has become higher. Based on an April 2009 survey conducted by the Center for Responsible Lending, one in every 22 buyers or one in every nine buyers with poor credit is a victim of this so-called yo-yo sale.
Related posts on loans for people with bad credit:
- Borrowers With Poor Scores Get Auto Loans Borrowers With Poor Scores Get Auto Loans For the first quarter of the year, Experian Automotive released a report about the status of automotive financing. This is good news especially for those who want to buy a new car. According to the report,…...
- Poor Credit Affects Auto and Home Insurance Poor Credit Affects Auto and Home Insurance The majority of consumers know that their credit history is affected by their payments on homes or cars, but only a few understand that it actually affects their insurance policies. Most companies that offer…...
- Chances of Getting an Auto Loan Become Higher Chances of Getting an Auto Loan Become Higher For those consumers who have poor credit and planning to get an auto loan, Experian Automotive’s report last May 29, 2012 will be good news for you. According to the report, average credit scores for…...
- I Really Need a Poor Credit Auto Loan Without Any Down Payment I Really Need a Poor Credit Auto Loan Without Any Down Payment Car dealers merely do not give you as much respect when you are applying for bad credit car loans. You try out a car; fill out a credit application and…...
- Tips on Filling Out an Auto Loan Application Individuals with good credit standing can easily purchase a new or used vehicle because they can quickly obtain a loan. However, this is not the case for those with bad credit. Most banks and traditional lenders are not willing to…...
Filed under: auto loans • bad credit • car loan • Credit
Like this post? Subscribe to my RSS feed and get loads more!