Car Finance from Your Broker versus Your High Street Lender
Buying a car is usually the second-largest purchase anyone makes in their lifetime, with the largest being a house. How to finance such a large purchase can be a bit of a minefield and you need to decide whether to go directly to the bank for a loan or go to a specialist finance broker.
There are advantages and disadvantages with each of these, as well as a plethora of financial products available, so some careful research into how well each product matches your individual circumstances is advisable.
Applying to the Bank
If you are lucky enough to have a perfect credit rating and a good working relationship with your bank then using them to obtain a loan would appear to be the most straightforward route to go.
The bank may be happy to give you an unsecured loan to buy a car or they may wish to secure a loan against your house. High-street bank-lending rates tend to be some of the most competitive on the market, but they have a limited number of products available and are less flexible about how they provide a loan.
If your credit rating and relationship with your bank are far from perfect, the chances are that you will be turned down by high-street lenders who shy away from anyone who looks like a possible risk.
Seeking out a Broker
The main advantage of using a car finance broker is that they know their business inside out. They have access to a wide range of financial products, many of which have been created to work for different individual circumstances.
Brokers see the trends in the market and have relationships with a wide number of lenders, so they can often offer special deals or discounts as well as products that are not available on the open market. They have the ability to find the most suitable lender for the borrower’s specific circumstances.
A further significant benefit of a car finance broker is that they take care of all the paperwork and the communication with the lenders on your behalf. This saves time and helps to prevent stress, which is an important factor for many people who apply for a loan through a broker.
Because brokers develop personal and professional relationships with the agents of big lenders, they can often reduce the processing time of a car loan application.
On the downside, a broker cannot live on fresh air so any loan taken out may come with a fee. If you are using a broker because of a poor credit rating you must also expect to pay over the odds in interest payments as any lender needs to offset the risk you pose of defaulting on the loan.
Weighing up the Choices
Each individual should make this important decision based on their own unique circumstances. There is no right or wrong answer that suits every person looking for a car loan. It is essential to research and compare the options available and, most of all, be realistic about how affordable monthly payments will be.
Affordable Car Loans May Depend on Your Credit Rating
Unfortunately, the days when you could simply get a loan as long as someone with a good financial history would guarantee for you on the finance are long gone. Nowadays it tends to be all about your credit rating.
Lots of different factors can add up to make your rating less desirable, for example, if you have any county court judgments against you, have missed mortgage payments, not paid by your credit card deadline or struggled to pay utility bills. The chances are these will lead to a black mark against your name.
However, there is lots of help and advice out there to claw your way back and build your credit rating again. And, it is worth doing as the better your credit rating is the chances are the better the deals on credit such as car loans, mortgages or personal loans you will be offered.
Ways I have found to easily improve my credit rating:
- Firstly you need to check with the two main credit agencies Equifax and Experian to find out where your current rating stands.
- Ensure any current debts you have are in the right name and have the right address.
- Get on the electoral roll at your current address.
- Make sure there are no out-of-date debts or, in fact, wrong debts registered to you. There shouldn’t be as the regulations for recording this information are pretty strict but it is worth checking.
- Show that you are a responsible borrower by making sure that your current repayments are on time if you have a credit card always pay off your balance if at all possible.
- If you haven’t used much credit previously start building your credit history a good six to twelve months before you want to apply for a car loan. Apply for a credit card and begin to spend on the card making sure that you also then pay it off in full each month.
- Shut down any loans or credit that you longer need.
- If you do have some missing payments on your rating you can add a ‘note of correction’ to the file which is a short explanation as to why you have missed those payments, you never know it might just help.
Bearing all these points in mind I found getting car loans rather easy but also remember if you are applying for a car loan that lenders like borrowers with fixed phone lines, a history of long term employment, a long term relationship with their bank and a few years living at the same address.
A final top tip is that if you are being turned down for credit do not keep applying for more and more, this will only make your situation worse as your record will show all these applications and refusals. It is time to regroup and find new ways to approach getting credit in order to start rebuilding that score.
All About Applying For A Car Loan Online
Are you interested in applying for a car loan online but don’t know how? That’s not a problem after this article you’ll find out everything there is to know about how to apply for a car loan online.
Know Which Bank You Want To Go With
The process is very simple. The first step you need to take is figuring out from what bank you want to get your car loan, most of them allowing clients to fill their application online. The second step is accessing your bank’s website and searching for an online application form.
This being done, you can choose to apply for a car loan or for an auto loan refinancing. Further on, when choosing to apply for a car loan online, you will be asked to provide some personal data in order to be identified.
Amongst others, you will be asked to fill in information like your home address, how long have you lived in your current home, if it’s owned by you or if you rented it, your home, work, and cell phone numbers, your birthday and your email.
You will also be asked for some information in regard to your car loan application. To be more precise, you will need to fill in the amount of money you want to loan, your loan term, your current state of employment, your gross income and Social Security Number.
No Fee Incurred
Applying for a car loan online is absolutely free and there are no fees that you must pay in order to do this. The average waiting time to see if your car loan application is approved is 60 seconds at some banks to a couple of minutes at others.
After having your application approved you will be able to view your loan offer online and decide if it suits your needs. Some financial institutions will often evaluate your credit score to see if you are worth the time and if your financial state is good enough for the bank to submit a loan offer to you.
Shortly after having an approved application, you will be contacted by a loan specialist who will have to confirm your identity and will then explain what your options are and what you must do to obtain your car loan.
The final step is signing the documents. After talking with the loan specialist and agreeing on a certain offer, he will prepare all the required documents and will send them to you for signing.
Send Documents Via Internet
In certain cases, the documents can be sent via the internet and all you will have to do is sign them and send them back through the internet, or through the post office. Take into account that you might need the service of a notary when signing the documents, in order to fully understand all the clauses and terms.
After the documents are signed and sent, they will be verified and the bank will fund your loan. And all of this being done online, without you ever having to leave the comfort of your home and without having to wait in those dreadfully long lines.
Getting a car loan online is the fastest and easiest way for you to buy the car you and your family need.
4 Tips For Securing A Lower Interest Car Loan
As the global economy recovers from the recent financial crisis, buying a car may once again seem like an easy thing to do.
However, financial institutions are handing out loans with a lot more caution. Although this is a good thing, it does mean higher interest rates. Here are 4 tips for securing a car loan with low interest rates.
Pull up your credit score
Your credit score has a big influence on the interest rate offered whenever you apply for a loan. If your credit score is too low, you most likely will not be approved for a car loan. Even if you do get approved, the interest rates on the loan are going to be sky high.
It is always advisable to pull up your credit scores before you apply for a car loan. In general, improving your credit score gives your portfolio a financial boost. Pay off any credit card bills that you have. Also, keep a close eye on your credit reports; if you find any irregularities, have the mistake rectified as soon as possible.
Save up to make a large down payment
If you want to save up in order to pay the full cost of the car, it will take you an awfully long time. The whole point of a car loan is so that you can buy a car as quickly as possible and not have to wait 10 years in order to save up enough money for one.
However, do not discount the merits of saving. The more you save, the bigger the down payment you can make. The bigger the down payment, the lower the interest rate on the car loan will be.
If you can delay the purchase of your car by a month or two, then definitely do so. The amount of money you save up in that time can be added to the down payment and help you secure a lower interest rate.
Reduce the loan period
One important factor that affects interest rates is the duration for which you are taking the loan. It is very tempting to get a loan that allows you a lot of time to repay it.
However, the interest rates on long-term loans are much higher. With a short-term loan, you do have to pay a higher monthly amount, but the overall interest rate is much lower.
Not only will you own your car more quickly, but you will also have paid much less for it that someone who has taken a high-interest long-term loan.
Shop around for the best rates
Most car owners shop around to get the best quotes for their vehicle’s insurance. However, they forget that they can do the same for car loans as well. There are a number of banks and financial institutions that want your business and, as a result, offer competitive interest rates.
Never hesitate to shop around for a deal that will suit your requirements. If you are paying off a mortgage, the financial institution may offer generous discounts if you decide to get a car loan from them. If you are a member of a credit union, then chances are that is where you will get the lowest interest rates for a car loan.
Keep these 4 important tips in mind and you should face no hassles in getting a low interest car loan.
How to Get an Auto Title Loan with No Job
Are you unemployed or still wearing out your foot soles to find a good job? At the same time are you searching for an auto title loan? If you are one of the unfortunate ones, do not lose hope because this is possible.
People who are unemployed also have the option of getting approved loans. An auto title loan is a few of the best methods to make use of money as a person who is unemployed.
Auto Title Loan deposit
In case the loan is not reimbursed, the auto title loan uses the car as a deposit. Thus the lender is at no risk while paying the money because the car can always be taken as a mortgage or also purchases, in exchange for the money to repay loans.
However, there are times when the car is not enough to pay off the whole loan taken. It may happen that the car has become old and has lost its value and it is known that the value of a car depreciates as time passes by.
Usually, the lender who lends the money sees the quality of the car and then pays only 40% of the value of the current rate of the car. All lenders who deal with auto title loans entail a title which is clear or considerable impartiality of a car. The value of an old car will be reduced and that is when a title loan will be required.
How to repay auto title loans
Though car title loan lenders need the loan amount to be repaid, they are not concerned about the source of money. The amount of income has be continuous and stable. Some of the best sources which you can repay the loan are with the following:
- A testimony of a constant and a continuous income from employment like bank accounts, records of the tax etc.
- Job payslips
- Social security number
- Insurance of Unemployment
- Retirement pension payment
- Usually, all auto title lenders keep these options in mind and it does not really matter if you are unemployed and getting money from some other source as well.
Bad credit does not usually lead to denial from auto title loan lenders for money. Auto title loans are much better than bank loans because with nowadays firm competition and monetary environment, employed as well as unemployed workers are looking at auto title loans for their survival.
How to go about it
If you find that you have suddenly been sacked from your job and are out of funds, you can apply for car title loans. Auto title loans facilitate you the right to use the evenhandedness in your motor vehicle for crisis situations just like the one you are in right now.
You can also use the money that you receive via your auto title loans in whichever method required, say your utility bills or your house rent.
Benefits of auto title loans
Auto title loans are a friend in need. It helps you in the most crisis situations and the most serious of times when one requires money. If you search thoroughly you may also find lenders who offer a low rate of interest for repayment of the loan.
Top 5 Most Common Situations Where You Need a Car Title Loan
Car title loans are quick, easy, and can get you the cash you need in as little as a day!
A car title loan is a tremendous financial tool that can help you solve a variety of cash flow issues. If you find yourself in need of cash to help solve your short to medium term financial issue, simply apply today by getting from a reliable lender.
Car title loans can be used for nearly any situation where you need access to quick funds, at a reasonable rate. The following are five common situations where a car title loan can make all the difference:
1. Medical bills are piling up.
If it seems like medical bills have gotten out of control recently, an automotive title loan through eTitleLoan can help. Medical collection agencies can be ruthless, and wage garnishments and other intrusive collections efforts can seriously affect your finances.
A title loan can help you get the cash you need quickly, to help you pay off or make payments on your medical debts. Don’t let these bill collectors try to take half of your paycheck – pay them off, with a title loan today!
2. Automotive repairs are needed.
If your car is in need of a serious repair you have two choices: either come up with the money to fix the car or find another way to get to school, work, social engagements, and complete the normal errands we all do each week. If you don’t have the funds available to pay for the repairs outright, an automotive title loan may be the answer.
By pledging the title to your paid off or nearly paid off the vehicle, you’ll be able to access the funds you need to get your car back on the road. The best part? You get to keep driving your vehicle even though you’ve used it to receive your loan!
3. Holiday expenses are piling up.
It’s that time of year, and the holidays can take a financial toll on even the most frugal of shoppers. Plus, once the holidays are over you’re likely to still be dealing with credit card bills from your shopping trips, higher utility bills due to the cold weather or visitors to your residence, and the all of the other costs associated with this time of year.
A title loan can help you start off the New Year on the right foot by helping you pay down these expenses quickly.
4. Rent is due.
Many of us have income streams that fluctuate. One month is pretty good, the next – well, not so much. When rent is due, though, no one in the leasing office seems to care too much about how business has been this past month. Rent needs to be paid. A title loan can help you keep a roof over your head by smoothing out those rough months.
5. Help a family member.
This is the time of year when we look to help others and to be as giving as possible. Some of us cannot qualify for loans through traditional means – and some don’t own a vehicle to be used as collateral for a title loan. If someone who is dear to you is in this same situation, your title loan may be able to help them out.
Car Title Loans – Facts for Los Angeles Consumers
Financial emergencies requiring immediate attention can arise at any time. While most economic experts recommend maintaining at least three months of salary in savings, many individuals and families live paycheck to paycheck and can be caught short by an unexpected major expense.
Car title loans can provide a short-term solution to cash flow problems, even for those who have experienced significant credit problems in the past. These loans are processed far more quickly than traditional bank loans, and qualified borrowers can typically receive cash in hand on the same day they apply.
During a financial emergency, consumers can often obtain emergency cash from one of the numerous companies offering auto title loans.
Requirements for Car Title Loans
Most auto title loans have minimal requirements in order to qualify. Typically, successful applicants for these types of loans must be at least eighteen years of age, employed or receiving a stable income and possess a vehicle that is in good running condition and either paid off or mostly paid off.
Generally, successful car title loan applicants owe less than 25% of the current value of the vehicle to be used as collateral. Applicants who meet these qualifications are usually eligible to borrow a portion of the vehicle’s wholesale value immediately while still retaining the use of their car, truck or other vehicles during the course of the loan.
Applicants will be required to provide a copy of their official identification, usually a driver’s license or state-issued ID card. Additionally, they will generally have to produce proof of employment or other income, as well as proof of adequate automobile insurance on the vehicle to be used as collateral.
Finally, while auto title loans can sometimes be completed without access to the actual title, it is preferable to bring in the paper title when possible. It is almost always necessary for the borrower to be the registered owner of the vehicle.
Car Title Loans Amount
In most cases, approved loan applicants can borrow up to 50% of the wholesale value of their vehicles. Because California law stipulates certain terms of the loan agreement, most lenders will not offer loans under $2,501; thus, the vehicle’s overall wholesale worth must be over $5,000 in order to qualify for the car title loans Los Angeles companies typically offer.
Consumers should note that the wholesale value of the vehicle may be more or less than the Kelley Blue Book value due to a number of factors, including the current condition of the vehicle, the market demand for the model and year and the amount currently owed on the vehicle’s finance plan.
Car title loans offer unmatched speed of processing; most title loan applicants receive a decision within one hour. Online title loan companies can deposit funds into the borrower’s account electronically within minutes or overnight, while brick-and-mortar establishments typically provide cash payments on the spot.
Title loans provide rapid access to needed cash for consumers, making them an excellent choice when the time is of the essence. By investigating the choices in loan companies, consumers can ensure that cash is available when and if emergencies arise.
Used Car Loans – Now Credit Score would not Come in the Way
Not every person can afford to buy a car with his salary alone. Availing a loan is a good alternative for such people, but what if he is suffering from poor credit status? The question is quite incomprehensible, but the answer is easy.
Lenders have particularly launched a loan for imperfect creditors for purchasing a used car known as used car loans that are really easy to obtain.
The loan is specially planned to feed the financial needs of those who are having blemished credit and considering buying a car. It is obtainable for financing both the new car and an old car. You can have this facility in secured and unsecured form.
The secure form needs a car to play as the security for the money while unsecured selection does not need anything to pledge.
However, if you are looking for cheap APR in this help, you should go for the secured choice because there your car plays works as collateral for the lender which makes it easier to have the money at cheap rates.
Yet, the rates of unsecured form do not go too high due to heavy competition in the market. They are accessible for a reasonably shorter period of time.
These advances are obtainable online which is possibly the basic cause why this credit option comes cheap. Most of the lenders have to go online for their simple accessibility which results in a huge mass gathered in the online market.
And, this creates hard competition among them for which they are bound to advance you reasonable rates. You can also take new car loans online.
You can also use this in making the credit report healthy. This is possible as you pay the loan amount on time. Through the online mode, you just need to complete the form with some basic details. Lender checks the form and approves the amount. The money will be deposited in the account directly.
Used car loans are offered in order to complement the money required to buy a car. Best car loans are provided to persons suffering from imperfect credit history.
Avail The Finance For Your Dream
If you require buying a car immediately but do not know how to opt for it, you can go for financial advisors. They can assist you to get a loan to buy a car of your choice. Not everyone can afford to purchase a new car. There are used car loans that give financial support for people who can not afford to buy a brand new car.
These loans are planned to support people in a very easy manner. These types of help will aid you to save a considerable amount of cash too. You require not to pay excessive rates of interest on best car loans.
There are many lenders offering this service at a favorable rate of interest. Doing a little research online will also give you the best deal. You can also repay the amount in easy installments. This will assist you to own a car while not expending too much fund from your side.
The online facility gives you the freedom to apply from anywhere in the U.S. You need to show that you can pay back the loan on time so that the lender can offer the amount smoothly. The amount directly credited in the account of the borrowers.
You can buy the car of your choice because the lender does not restrict you. This will also not put a load on your funds. Before you obtain car loans, you must decide the car model according to your suitability and savings. It is always good that you also pay from your side and borrow the amount that you can repay easily.
A poor credit score will not impact your chances of getting cash help. Borrowers with bad credit history, CCJs, or bankruptcy can opt for this facility with no hassle. This can be a situation that you have to pay high APR against the borrowed amount.
Looking online can also give you the chance to get a favorable rate of interest for new car loans. There are many lenders offering this cash service at a lower rate of interest.
Used car loans provide financial help for the used cars only. This gives you the chance to acquire the proper financial support to fulfill your car dream.
Pawn Your Car to Release The Cash You Have Tied Up
A traditional way of getting some short term cash is taking some item one has of value to a pawn shop. There whatever it is that is being pawned is valued and then a portion of its value is loaned in cash while the item is kept as a pledge for an agreed period.
By that date, the loan should be repaid including the pawnshop’s interest. This interest may be as low as 10% but is usually a lot higher. Thus pawning items is expensive money. One hopes that one only uses a pawn shop if the need is great and not to fund drinks at a local bar.
Defaulting on a Pledge
In the event that the pledge is not redeemed on the due date, the pawnshop is at liberty to effectively seize the item and sell it for whatever he can get for it. If he sells it for more than the redemption amount (which already includes his generous interest) that is his luck.
But quite often unredeemed pledges like old Acoustic Guitars, kids bicycles, old watches, tools and so on, and lately many mobile phones and laptop computers are pawned.
If one goes to a pawn shop one will normally find a huge number of these items on sale. If one is astute there may well be bargains to be had, but one should be aware that the pawnshop is well aware of the commercial value of each item.
Dallas Title Loans Bring the Cash
Well, San Antonio title loans are similar to a pawn shop in some ways, but there are huge differences. For a start, you do not have to surrender the item at the time of receiving the loan. You hand over the ownership papers and may keep on driving your auto.
Provided you pay off the loan according to the agreement you will never lose possession of your car. The interest you are charged by McAllen title loans is reasonable as it is a secured loan, but it is somewhat higher than you would be charged by a high street bank.
This is normal as Dallas title loans are in business to loan money and make a profit, It certainly does not want to end up owning a number of cars. For this reason, it encourages you to never borrow more than you know you can repay. San Antonio Title loans never charge you early settlement penalties so if you can pay it all off early that is desirable.
Another major difference is that McAllen Title loans bring cash to you.
How to qualify for San Antonio Title Loans
All you have to do to qualify for Houston Title loans is to own your car (Or have almost paid it off) and the auto must be substantial in value and be in good condition. The fact that you may have a bad credit record is of no account as this is a secured loan.
How To Repair Credit Score To Get An Auto Loan
With the tight credit market, persons with bad credit are in a difficult situation. You need credit to finance a home for example, but your bad credit score excludes you from the process.
There doesn’t seem like any solution. Over the past few years, however, auto loans have become more accessible even for persons with bad credit. This is a great way to turn things around for you economically.
Let’s take a look at how you can start to repair your credit score with an auto loan.
Changing Economic Tides
The national economy is starting to improve and stabilize. This has made lending more flexible in some areas. One such area is car loans even for those with bad credit. The average credit score required for auto loans has been going down over the past few years.
Not only are the lenders making more loans, but the sizes of the loans are growing as well. And there is even more good news. Monthly payment amounts have been trending downwards. All of this translates into helping you repair your bad credit score through an auto loan.
The reason people with bad credit are getting car loans is that in general the loans are being paid on time. As late payments and non-payments have decreased overall this makes the lending requirements softer across the entire auto loan sector.
Maximize Your Chances for Getting a Loan
First of all, don’t think that you are going to slide into a loan for a $50,000 Mercedes Benz if you have bad credit. Think within your terms and be realistic.
The first step is saving as much money as you can because this will allow you to make a bigger down payment. The bigger the down payment is, the better your chances are for loan approval because the loan will be smaller.
Also, don’t just limit yourself to one potential lender. Try several banks, credit unions, and auto dealers when shopping around for your loan. Finally, consider buying a used car as the loan amount will be smaller and easier to get.
Bad Credit Auto Loans Improve Your Credit Score
Remember, getting the loan approved is the key here. Don’t focus so much on the car you will be driving. Be willing to settle for something smaller or cheaper if you have to.
But no matter what, get that loan approved. Once you get your loan approved your credit score has already begun to improve.
Also as you make your auto loan payments on time this helps your score to recover as well. In fact, all on time bill payment helps to improve your credit score.
Bad credit scores are difficult to change. There are limited options in reviving your credit score, but with new trends in the auto loan industry, there is good news. Loans are more accessible now, and the loan terms have become more favorable to the borrower as well. Once an auto loan is secured the process of bad credit rating recovery has begun.