Friday, December 31, 2010

Fundamentals of Auto Financing Online

Internet has created a paradigm shift in loan markets across the world. Faster approval, hassle free processing and quicker disbursal have made loan raising through online mode a preferred option for millions of borrowers. Car financing online industry is no more exception to this ongoing trend. All the major institutions and lenders engaging in auto financing are now offering online finance plans. This article deals with fundamentals of auto financings, its advantages and how one can avail these opportunities easily

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What is auto financing online?

Honestly, auto financing online follows the same spirit of other onsite auto loans. The difference is that the borrower applies here online and the processing takes place through internet. Like general loans plans it also require the borrower to have the repayment capacity and should posses good credit scores. All the borrower has to do is filling the online loan application form available on lender’s website. The loan quote is free from any obligation. You can fill the form with in 10 minutes. Then you need to submit documents related to your repayment capacity, credit score, age, identity and the amount of loan you want to borrow. Once the formalities are over representative of the lender gets back you and the processing is carried on. After the loan is approved the loan amount is deposited in your bank account.

What are the advantages of auto financing online?
It is the fastest and most convenient method of raising loans to buy a vehicle. As every thing is done online you do not need to go to lender’s office time and again. Hence you save a good amount of money. As it removes paperwork from processing the process becomes much faster. You can apply for the auto financing online 24X7 from the comfort of home or office. Hence, no need to bunk office or postpone your urgent work for loan application. The most important benefit of easy auto financing online is the opportunity of comparison. The rate of interest and other terms vary from lender to lender. With few clicks on computer you can access scores of auto finance loan quotes. After a thorough comparison, you can easily go the lender that offers at a competitive rate and offers other borrower friendly advantages.

How to avail auto financing online?

For this all you need is a computer with internet connection. Then search for the lenders specialising with auto financing. Before applying them, make an estimate of the amount you can bear as down payment and your current credit status. If you suffer from adverse credit score make sure that you are approaching bad credit car loans lender. For faster approval, get the required documents ready while you fill the loan application form. While filling the loan quote make sure to read the terms and conditions carefully. If a lender imposes processing fees or any hidden cost do not opt for him. Behave wisely and get the best out of auto financing online.

Few Tips for Buying a Vehicle with Bad Credit

Approving a car loan considers a number of factors. They are repayment capacity, credibility and source of income of the loan applicant. Loans are for no charity. For lenders it is their business. Hence, they need to be assured that you have a regular source of income and able to payback the money with the mutually agreed period. This is not enough. Before approving you vehicle or any loan that involves higher amount of money, lenders check your credibility. It means they check your past behaviour related credits. Late payments, arrears, defaults, filing bankruptcy are treated as vulnerable credit behaviour. People having such adverse tags with their credit behaviour are refereed as bad credit borrowers. Lenders generally used to hesitate while they were approving loans to bad credit borrowers.

However, there is a turn in this situation with the advent of global slowdown. The economic recession has made bad credit a rule than exception. Instability in financial market, job loss and global recessionary wave has created millions of bad credit borrowers. Hence, they are no more treated as untouchable by the lenders. Bad credit borrowers are now allowed to take vehicle loans by paying a little extra rate of interest. In this article we will talk about the process of approval related to bad credit car loans and how you can get these loans faster. The tips for availing hassle free bad credit vehicle loans are:

Assess your credit score

The first step while taking loans for vehicles is having a clear idea regarding your current credit status. You can get it from your credit score. It is provided by credit bureaus without any cost. Here you will find all the minute details regarding your credit past. Once you access it and come to know that your credit score is below par never approach a lender who deals with good credit borrowers. It will lead to rejection of your approval. Search for the bad credit auto lenders and apply for them.

Estimate your budget and loans amount
After analysing your credit status the next step is estimating your budget. You should keep in mind that no auto financing company offers 100% finance. You have to bear a part of it. Hence prepare a budget regarding the amount of money you have and the amount you need as finance. As bad credit vehicle loans come with a higher rate of interest, it is advisable go for a higher down payment and lower loan amount.

Compare loan quotes of multiple lenders

Rate of interest on bad credit vehicle loans vary from lender to lender. Hence to get a fair deal you need to compare loan quotes of multiple auto lenders. These quotes are free of cost and you can access handfuls of them through few clicks on computer. While choosing a lender make sure that he has no hidden charges like processing fee and early payment penalty.

Repay on time

Repaying bad credit auto loans on time helps in improving your credit score. Once the dark patches of adverse credit rating are cleared you can raise loans at competitive rate.

Monday, December 20, 2010

Pros and Cons of Getting a Blank Check Auto Loan

Blank check auto loans can help the potential car buyers in great ways. It offers enormous amount of time in selecting the right kind of vehicle according to their requirements. It is rather easy to obtain blank check auto loans when compared with traditional loans. The borrower need not step out of his home to obtain this kind of loan. The borrowers can get pre qualified for a specific amount of money with which they approach various dealers. They look for cars which will fit their budget and drive home back happily. This will save enormous amount of time for the buyers and they can concentrate on learning about the features of the make and model. The loan terms are very flexible and are offered to people from all walks of life.

Let's have a look at the pros of getting blank check auto loans.

Ignore the lenders: Having pre-approved with blank check car financing, the borrowers can bypass the dealers without worrying about financing. The borrowers have the desired amount in hand and can straight away ask for discounts or rebates which will save them huge amount of money. The complete process of buying the car becomes hassle free with blank check auto loans. The borrowers will not be scammed by faulty credit scores and other procedures.

Reliable lenders: Most of the traditional lending institutions have started offering blank check auto loans considering the rise in demand for such types of loans. Established banks and private lenders are adding themselves to the list of lenders offering blank check auto loans. It gives enormous trust to the borrowers and makes them free from worries of extra interest rates.

Know your limit: A blank check car loan will fix up the budget and borrowers can search for models that will fit in this budget level. It saves them huge amount of money in the long run. It is a wrong concept to buy a vehicle based on the monthly payments.

Any kind of auto loans might have its own pros and cons. I think it's high time to discuss some of the disadvantages in getting blank check auto loans.

Higher interest rates: Lenders try to grab the attention of lower income groups and people with bad credit rate to offer these kinds of loan. They charge higher interest rates for people having less than stellar credit rate.

More paper works: The borrower has to complete the procedure in getting pre approved auto financing. After this, the borrower has to choose the desired car and has to run back to the lender to sign in more number of forms to complete the procedure. It becomes an additional burden for the customers.

It is up to the borrowers to analyze these pros and cons and obtain the loan. The loan should be obtained purely depending on the individual requirements after a thorough financial assessment.

When To Refinance Your Car Loan?

Do you have a car loan?

Do you want to save money?

Do you want to lower your monthly payments?

Refinancing your existing car loan can be a wise option to save money in the long run. It is highly recommended to trade in high interest rates loan to low interest car loan when you have a better credit rating. This will also help you to lower your monthly payments and relieve you from the financial clutches. I have tried to shed some light on refinancing automobile loans and the facts that will help you to make informed decisions.

Trade in high interest rates: Refinancing car loans become sensible when the interest rates drop. Another factor is the tenure of car loans that will help you to make a decision. If you still have only a year to complete the loan term, it is not sensible to opt for refinancing. Since you have paid most of the loan amount, you cannot save more money in this process.

Interest rates can be reduced to certain extent by refinancing it for a shorter term. If you can reduce the loan tenure by 2 years, it can save you thousands of dollars on interest rates by still having the same rate of interest. For example, if you have taken a loan for a car that values $10,000 presently at 8.9% interest rate, you will end up paying $2500 as interest amount over a period of 5 years. However, if you can reduce the interest rate to 6.9%, you can save up to $575 over the lifetime of loan. This amount can be diverted to other funds which will be very useful on several occasions.

Better credit rate and better rates: If you have repaid your existing car loan promptly, your credit rating should have improved drastically which gives better credibility. This allows you to qualify for better rates even if the interest rates have not dropped in general market. You can also improve your credit rating by reducing the debt ratio apart from paying the loan amount promptly.

Lower repayment and longer term: Reducing the interest rates is not the only option to be considered to refinance the car loan. You can reduce the monthly repayment amount by rolling over the term to extended period. However, it is important to remember that you will end up paying more when you opt for this. This option should be considered when you feel like you cannot afford to pay exorbitant monthly payments and want to get relieved. This could certainly save some bucks which can be used to pay off other bills.

The timing of automobile refinancing is an important factor. Do not refinance at a wrong time which will not allow you to enjoy the benefits. It is important to take your time and analyze the situations after which the decision should be made.

Monday, November 22, 2010

Student Auto Loans with No Credit History! Is It Possible?

Students will have the necessity to commute to different places while they are studying. Especially, college goers will have lots of friends and weekend parties. It is not possible to ride the bicycle and reach the destination on all occasions. A car would certainly save the time and of course it gives immense pride and pleasure in driving it. There are several financial institutions offering student car loans at lower interest rates with flexible terms. Affordable luxury is now available to all sorts of student and there are several advantages in getting these kinds of loan amounts.

Instant approval: It is a known fact that students do not have good credit history in fact they have no credit built up. They cannot afford extravagant amount as upfront payment and they have to buy their car with a limited amount in hand. Lenders are aware of this fact and are lenient while offering these loans. Student auto financing with zero credit history are absolutely possible in today's scenario. Thanks to the recession and lenders are aggressively looking out to improve their business sales. Lenders offer instant approval on all student auto loans provided if they meet the minimum eligibility criteria defined by the lenders.

Low interest rates: There is yet another advantage in getting student car loans for no credit history. The rate of interest is relatively kept low and is affordable to most of the students. This reduces the monthly payments for the college students. Lenders might give additional benefits and flexibility to the student loans. Giving more flexibility helps them to gain more business.

Lower Down Payments: Sizeable down payment becomes a huge burden for the students. Lenders will be happy to see the parents supporting the loan process as it will give better credibility on students. If the loan is obtained with collateral security, there are more numbers of chances to reduce the down payment to a greater extent. However, it is highly recommended for the students to arrange for the initial funds which will differ from 15% to 20% of the total vehicle cost. If not, this amount will be added in the loan amount and the student might end up paying a huge amount as interest and will complicate the process.

Co-signer is not obligatory: A lender will usually demand a co-signer if the down payment is very less. However, the lenders are lenient for students and try to avoid this circumstance. This rule depends on the lenders and not all might compromise with this factor.

Online auto financing: Online auto financing are a better option for students. This will help them to obtain quotes from different venders and compare their features. As the competition is very high in the online market, they offer loans at reduced interest prices.

The above said factors will help the students to obtain no money down auto loans and fulfill their dream.

Thursday, November 18, 2010

How Online Auto Financing Can Help You Getting Approved For Your Car Loan Instantly?

Did you ever think that you will gain a lot of benefits due to the revolution in Information Technology sector? Every single in this world reaps the benefit of massive growth of the internet technology. Have you ever wondered that you will be able to get loans online with the help of single mouse click? People would feel dejected when they have bad credit ratings which would never allow them to get new loans and put them in to deep financial trouble. However, getting online auto loans is considered to be the best option to come out of these troubled waters. This method is very unique and has its own benefits. It has become the first choice of people to obtain auto loans.

What are the benefits?

>> The loans are obtained in real quick time. It will not take more than 24 hours of time to get the loan amount approved.

>> The borrowers can save huge amount of money by applying online as there are no processing fee and application charges.

>> The borrowers are not discriminated based on their credit rates.

>> Auto loans are offered to buy any kind of car let it be new or old.

>> Lenders offer additional assistance in selecting the model of cars and also in other process.

>> The borrowers can get maximum loan amount approved with least interest rates.

>> There are no complex procedures involved and the process is entire hassle free.

Online auto loans are instantly approved and people need not to worry about the rejection of their forms. Buying a new car can be exciting and at the same time it might be frustrating too. This might be because of the rejection of application. The borrowers need not worry in the case of online applications. It will not take more than 2 minutes to fill up a form with a lender. The entire process of filling up forms with 5 different auto loan lenders should not take more than ten minutes of your valuable time.

The competition is really high in the market. No lender would like to lose his business. Hence, every lender would end up in giving calls and would try to negotiate with you. I feel this is a golden opportunity provided to negotiate with them. There are high chances to secure the least interest rates by comparing rates from various lenders. There can be additional benefits offered by the individual lenders.

Steps to do while applying instant auto loans online:

>> Get access to your credit score to understand your risk and benefits before applying.

>> Collect various information regarding lenders and analyze their rates.

>> On getting online quote from lenders, choose the best of dealers available to you.

>> Check for the client testimonials available in the web site before proceeding.

The lenders will ask for the car details and its price. Without any delay, the loan amount will be approved and getting online car loans are that simple.

Thursday, October 28, 2010

No Credit Car Loans - Tips for Financing Your Car with Zero Credit History

Thinking as how to get better interest rates than what is being offered to you especially when you have no credit score to bail you out? Getting car loans for no credit is not an impossible work, but a tedious task to undertake. You have a disadvantage on which you have to work to make it your strength by some means.

One of the initial steps will be to find as many lenders as possible. And I am not talking of financial institutions or banks because most of them will not like to deal with you. The reason is simple - you have no credit rating. Not having credit rating is not a crime, it just increases the risk. So the traditional financial institutions are afraid to take that risk as it involves an uncertainty of default on loan. Hence we are aiming at those institutions, banks, credit unions, lenders and dealers who are offering the no credit vehicle loan services.

These lenders are willing to take the risk and so they expect a reward. They will offer no credit auto loan at a higher rate of interest than the usual loans. Are you hesitant about the no credit automobile loan after seeing the rates? Do not be alarmed because you have to keep in mind that they are practically taking the risk to finance regardless of your credit history. When you come across such high rates, do not get upset. Instead use your negotiation skills. You can actually bring down the higher rates of the interest offered by the lender by showing your positive points such as your income or paying down payment.

In no credit auto loans, collateral plays an important role. In car financing, the car is part of your collateral. The lenders who are offering no credit auto loan may ask you to put down additional collateral and sometimes ask for a co-signer. The additional collateral should be such that it covers the value of the loan and its interest. They trend to ask for additional collateral comes from the conception that the value of the car depreciate with time. The collateral can be anything from a house, land or another vehicle you may have.

However, it might be that you do not possess collateral. Even then you can avail no credit vehicle loan if you are employed and have regular source of income. Your employment history, amount of income, investments made, etc will come into forefront. Lenders may actually go through the process of checking this information to satisfy them. Your annual salary for the previous year will be looked into because your annual income will be one of the deciding factors. You will have to keep your patience and go through all the paper work if you want to secure no credit car loans.

Once your paper work is over and the no credit auto loan gets approved, visit the dealer of your choice to get that dream car of yours.

Financing Your Car Through Credit Union With Bad Credit

When you are going through your financial statements and are stopped by the credit scores, it certainly it changes your expression. Either it is very good score which gets reflected by your smile or it is a bad credit rating which draws a frown from you. The frown deepens if you were thinking of buying a car. In such case, get the assurance that you are not the only one in similar scenario. There are many people scouting for the appropriate solution for financing the car.

Bad credit auto financing are offered by many lenders and financial institutions. Some may be manufacturers or dealers, banks or credit unions, or private lenders. Among these various, lenders, credit unions have been doing a marvelous job. The credit unions are the financial institutions which are cooperative in nature and are controlled by its owners. The owners are usually the members of the corporations.

Difference: The traditional financial institutions are generally not much interested to forward a loan to a person who has bad credit history because they are considered risky, but this mindset is changing. There are banks, dealers and financial institutions that are willing to approve the loan even if you have poor credit. The main difference is the motive of these lenders and that of the credit unions. These lenders work with a motive to earn profit; whereas the credit unions work to serve their members. The lenders charge a very high rate of interest but the credit unions charge reasonable interest rates because they provide the loan and other financial services to their members.

Popularity: The popularity gained by the credit unions over the last decade is due to the low interest rates and discounts offered by them. Even when you are surrounded by the various attractive offers, the advantages of the union is hard to ignore. The accessibility factor has also contributed to its growing image. You can seek information online or over the telephone. You can also walk to the nearest branch and talk to the representative of the credit union.

Availability: Availing a loan from a credit union is not difficult. You can get in touch with the credit union if you are an existing member of any of them. You can get your credit score verified from any of the professionals or credit bureaus or dealers. However, if you have gained a membership to the credit union, then seek the help of the experts of these unions. Their knowledge and professional services are of immense help in finding accuracy of the scores. It is important to know your financial standing accurately because it gives you the power of negotiation.

Procedure: The procedure to get the bad credit car loans approved is marked with routine rounds of the union office. While the dealers and lenders can generally get you the loan approval within a day or two. The completion of all the procedures and formalities takes over a week or two. Therefore, you will need patience to deal with it.

Thursday, February 18, 2010

Benefits of Acquiring Bad Credit Auto Loans through Sub-prime Lenders

The world economic recession has created a different set of dynamics before the lenders and primers. With pink slips and instability in the job market borrowers are finding it hard to maintain regularity in repayment. Unavailability of unsecured loans has also added to their worries. This is no less a turbulent time for lenders too. With increased number of bad credit borrowers they are forced to relax their good credit score while approving new loan plans. The whole scenario has paved the path for sub prime lending. In terms of economics, sub prime refers to borrowers with a less-than-perfect credit history, also called B&C credit. And the lenders dealing with such borrowers are called as sub prime lenders. Car financing industry is no exception to it. Here you will find scores of sub prime lenders in their hard efforts to attract more customers.

People often wonder regarding the process of acquiring bad credit car financing through sub prime lenders. If you follow some simple rules you can easily access them. The first step in this regard is having a clear idea about your credit score. Credit score prepared by several credit bureaus epitomise your past credit behaviour. If you have arrears, defaults or late payments in your name against previous loans you are tagged as a bad credit borrower. There might be a case while you will be tagged as a no or limited credit borrower. It means you did not have taken a loan in past or taken small amounts. It also blocks the road of auto loans that involve higher amount of money.

Once you are sure that you have adverse credit scores you are advised to approach a sub prime lender. He will offer you bad credit auto loans without any hassle. For this purpose all you need to do is searching for lenders on internet, filling their online loan quotes and submitting the required documents. To avoid risks the lender might ask you to pledge security. Pledging collateral has several advantages for you too. You get the bad credit auto loan at a lower rate of interest and for higher repayment period. If you do not want to pledge any security, try to convince the lender that you have a constant source of income to pay off the borrowed amount on time. He might ask for your employment status and source of income.

Bad credit auto loans by sub prime auto lenders not only offer you the opportunity to own your car but also help you in improving your credit status. If you pay regularly, you can mark significant improvement in your credit status. This will lead you to raise finance in future at competitive rate. Bad credit auto loans provided by sub prime lenders are processed in online mode. Hence, a lot of time and money is saved. You can find multiple sub prime lenders dealing with bad credit auto loans at the web space. Apply for them and make your dream of being a car owner true in a hassle free manner.