Why Online Car Loan Companies My Be Your Best Bet If You Have Bad Credit
The majority of online car loan companies have programs to finance people with a bad credit history. Even if you have a recent bankruptcy, foreclosure or another adverse credit issue, you may still be able to qualify for a car loan. Having poor credit these days will not keep you from getting financing. Even if you have no credit, you may still be able to get approved.
Do your research with these companies and ask questions. They benefit by lending you money and you can benefit by being able to purchase a car! Be upfront and honest with them when communicating and you will end up in the best they can possibly offer you.
Poor credit auto loans make it possible for people with bad credit to buy a car. Auto loan lenders that specialize in bad credit expect to be approached by people who have poor credit so they don’t set such strict requirements for their loans.
With a bad credit auto loan, people with credit problems can get a car without all the hassle of worrying about their credit or being repeatedly turned down. Despite some benefits, though, there are also disadvantages to getting a poor credit auto loan. Both should be considered before any driver tries for poor credit auto loans.
On the plus side, bad credit auto loans are fairly easy to obtain. Lenders that specialize in this area usually only tend to require that you have steady employment and a decent debt-to-income ratio.
Although they will look at your credit, it generally isn’t a major factor in the loan approval process. It does, however, dictate your interest rate as we’ve already told you. The lender will look at your credit history to determine how great of a risk you are. The worse your credit is, the higher your interest will most likely be for the loan.
As far as the time frame of your loan, it’s generally a good idea to only take out a loan for no more than 48 months (4 years). Most people choose the 60 month (5 year) option because their payments will be lower but you also need to realize that the longer the time period of the loan the higher the interest will be.
You also need to realize that vehicle ownership entails more than just the car payment. You also need to add in insurance, gas, repairs, etc. when considering what you can afford in a car. You don’t want to spend the next 5 or 6 years paying off a car that will depreciate in value the moment you drive it. You run the risk of ending up in a situation where you’ll owe more than what the car is worth.
About the Author
Gregg Hall is an author living with his beautiful wife and family in Navarre Beach, Florida. Find more about cars as well as car care products at http://www.5starshine.com