Car Credit – Your Options

Car credit is an all encompassing term for the hows and whys of financing the purchase of a new or used car. Its ambit covers loans, payments options, car refinance and leasing. It’s a complex subject so let’s look at a few fundamentals you need to understand before venturing out into these waters. Do you have the option of going in for a secured car loan? Secured loans are offered against collateral such as fixed assets or property and the interest rate is lower than for unsecured loans. However, since unsecured car loans are easy to come by, you may prefer to keep the secured loan option for some other purpose.

Before applying for car credit get a copy of your latest credit report and fix any issues which may have a negative impact on a potential lender. Car credit covers both buying and leasing. Leasing is cheaper, but what you get is the right to use a car for the lease period after which you give it back to the leasing company. You have not bought a car and it is not your property.

Be careful in filling out your application for car credit. The application will be checked in detail and an honest error may appear, to the finance company, as an attempt to mislead them.

Research all the car credit options available to you but do not make multiple loan applications. These will be reflected in your credit report and may make it seem that you are desperate for a loan which may make potential lenders wary.

Getting a car loan from an auto finance company like ours is usually quick and easy since we know the lending companies well and know how applications are evaluated. We are able to guide you on how to apply and the pitfalls to avoid.

Be realistic in planning your purchase and monthly installment budget. It is tempting to go in for a great sounding offer that will allow you to buy a car you never thought you could afford. But the bottom line to use for evaluating any car credit offer is how much you will be paying every month and how much is towards the car and how much is interest in the loan.

Prepare a budget you are comfortable with. Do not fall into the trap of availing of higher car credit in the expectation of increased income in the future. Base your planning on what is, not what will be.

At the same time, remember that taking car credit for the maximum time possible may reduce your monthly payments, but the longer duration of the car loan will increase the amount you will be paying in interest. Keep accurate records of everything – your down payment, all extra expenditures like insurance, registrations and so on, your monthly installments etc. In case of any disputes with the lending company, you have all the information you need with you.

Building Your Credit

Sometimes people make bad investments leading to damaged credit. Other times, it’s credit card debt that got out of control. Whatever the reason, your score doesn’t need to keep you from getting the tools you need to succeed in life. Bad credit car loans are available at the dealership however you should deal with a company like ours that specializes in bad credit car loans.

However, you may ask yourself why you want to get into another loan situation. The answer is pretty simple: the benefits outweigh the risks if you approach it with some knowledge and preparation.

Get Your Score Back

The best way to rebuild credit is to pay bills on time and make regular payments on a loan. You might not be aware of this, but car payments are a great way of building credit. Taking on more debt to heal your damaged credit might seem counter-intuitive, but if you’re in a good position to pay off the loan on time it’s one of the easiest paths to a higher score.

Get the Right Loan

A lot of this has to do with making the right purchase and getting the right loan. Shop for the most expensive car you can easily afford. This will send a message to the financing organizations that you’re getting property that will still have some value for the life of the loan. With the car itself as some insurance against any default, loan officers are much more likely to approve your request.

Put Money Down

Put as much money down as you can afford. Sure, it might seem better to have it in your bank account, but car loans for low credit scores tend to have high interest rates. Paying as much as possible up front is the only way to minimize the amount of interest you have to pay without lowering the rates.

Get Advice

Everyone’s situation is different, so please fill out our secure online credit application or give us a call for a consultation. Make sure to have your most recent financial documents for our professionals to review.

What to Do if You Can’t Pay Your Car Loan

If you’re struggling to make your car loan payments, it’s important to know that you’re not alone. The number of people failing to make their payments 60 days after purchasing a car with bad credit car loans has actually been on the rise recently. Fortunately, there are things you can do to avoid losing the valuable asset that you just purchased. We know how important it is to you, and we are ready to work with you to ensure that you can get past this temporary challenge and improve your quality of life.

We are willing to issue bad credit car loans because we know that having a car opens up major opportunities for a person to improve his or her quality of life and get new employment. Everyone goes through a tricky period of time after purchasing a new car when they are suddenly saddled down with car payments but the actual benefits of having that car haven’t fully kicked in yet. Don’t worry – we have long-term vision and we know that things will soon get better for you. That’s why it’s important to be honest with us about your situation.

We can often make a deal with your lender to restructure the loan so that the payments are less onerous. You might also be able to take advantage of a temporary hardship program to put some payments off until you get on more solid financial ground. Whatever the solution, the most important thing is that you communicate with everyone involved as soon as you start experiencing difficulties.

Remember, purchasing your car with bad credit car loans was a good decision, even if you’re struggling temporarily. You made the major step of acquiring a vehicle, and your quality of life will soon improve. In the meantime, work closely and openly with your lenders and we will find a way to make your car loan payments manageable.

Easy, Friendly Car Loans

In today’s challenging financial climate, you might wonder how you can get approved for car loans. What if you’ve never bought a car before and don’t have any credit? What if you’ve had a bankruptcy or have bad credit? If you’ve tried unsuccessfully to get approved for credit cards and other methods of credit, how is it possible for you to be approved for something as important as a car loan?

Fortunately, it may be easier than you think to get approved for an auto loan. At The Approval Centre, we understand that people need to start establishing their credit somewhere; good credit doesn’t just fall out of the sky. If this is the first car you’ve ever bought, we can walk you through the process. We’ll show you around our wide selection of quality used vehicles and answer any questions you might have. We’ll put your mind at ease in regards to affordable financing options, as well as the repairs our vehicles have gone through before being put on the lot.

Are you suffering from bad credit? It’s a catch-22 when you need a car to get to work, but you can’t get approved for car loans because of a past bankruptcy or poor credit. We love helping people with bad credit re-establish a positive credit rating by fitting them with loan terms that are flexible and affordable. Also, we never take advantage of people already suffering from bad credit by charging them outrageous interest fees.

We have access to thousands of vehicles. Our professional staff will take the time to patiently answer your questions and work with you on getting terms you can agree with. We never resort to high-pressure tactics to make a sale, and we also make sure you are completely satisfied with your service before you drive off the lot. We’re confident we can help you drive away in the car of your dreams.

Tips for Improving Your Credit Enough to Get a Car Loan

When you need to buy a car, but your credit’s bad, you may struggle to find a loan at all, let alone one with the type of terms you can live with. However, there are some things you can do to ensure that you’ll be eligible for bad credit car loans.

Work Toward Improvements

Even though you have bad credit, you can turn it around enough to at least show some improvement. This single step may help you work out better terms than you might expect from a so-called “bad credit loan.” To complete this step, check out your current credit score. Sometimes, the reporting agencies will also provide tips on how you can improve your score. Within months, you should see some progress, and this can help you get into a better loan situation.

Don’t Rack Up Inquiries

Did you know that every time you apply for a loan, your credit score takes damage? If you head into one credit purchase after another, you’ll end up damaging your chances of getting any loans, even those that are intended for people with low credit scores. When you’re ready to shop for a car, don’t open up an account at your favorite shopping center.

Don’t Be Misled by Low Interest Rates

Loans with longer terms generally have lower interest rates. Short-term loans, on the other hand, have higher interest rates. In many cases, in spite of those higher rates, you’ll still spend less when you choose the short-term loan. If you can’t qualify for one of these loans, be sure to check about an early pay-off penalty, so that you’re free to pay off your debt as quickly as possible.

Make All Your Payments On Time

As you’re working hard to improve your credit, you may be tempted to pay more towards one loan and let other loans suffer. However, every late payment can damage your credit score. This is especially true of any mortgage payments.

As you work toward improving your credit to the point that you can get a loan for that car you need, carefully stick to good credit principles. In time, you’ll have a score to be proud of.