Posted by admin on October 27, 2010
As a car salesperson I saw it time and again. People coming onto the lot with that “defeated” look. The one that says, “I know my credit sucks and that I can’t get a car loan, but I’m desperate.”
The sad thing was, about 50% of these people were right. The major banks wouldn’t loan them the money. Which begs the question, “If my local dealership couldn’t get me financed for a bad credit car loan, how can an internet company do it?”
Simple. They SPECIALIZE. What’s that mean . . . specialize? It means that they are set up to “take risks.” In other words. They already know you have bad credit, but these car lenders either have access to lenders that are willing to work with you, or better yet, they ARE the lender.
These bad credit auto lenders know you have a bankruptcy. They know you’re behind on a few credit cards. They understand that life gets ahead of you occasionally. And they are ready, willing and prepared to give you a car loan!
When you are pre-qualified it will be the easiest car shopping you have ever experienced. With pre-qualified (Pre-Approved) shopping you know exactly how much you are approved for and all you have to do is find the right vehicle, sign some papers and drive out! Well maybe I have over-simplified it a bit – but not by much. You don’t have to wonder if you got the best interest rate or anything else. Just be sure to leave room for tax and license and of course gap insurance and that’s it.
Is it hard to qualify for a bad credit car loan from one of our lenders? Absolutely NOT! Go for it! Almost 85% of people just like you get the car loan they need. Fill out the credit application from one of our lenders and see how pleasant and easy it is. You will never buy a car any other way!
For a complete list of our bad credit car loan lenders click here.
Posted by admin on September 8, 2010
Before the current credit crisis there were few options for buying a car if you had a low credit score. There are and always be the buy here – pay here car dealers but if you can avoid these we heartily recommend that you do so. You will pay a much higher interest than if you shop around on sites like ours.
One of the things that we have had personal experience with is the quality of the autos that the above mentioned dealers carry. They know that if you have a problem you have no recourse since they carry their own contracts, who can you complain to? A personal friend of mine bought a car from such a dealer about ten years ago and had nothing but problems. The car she purchased broke down multiple times and after getting no satisfaction, she quit making payments which further damaged her credit. The Better Business Bureau told her later that this dealer had a terrible reputation. Too bad she didn’t know that first.
Anyone with poor credit already knows that their rate of interest will be higher than someone with pristine credit. You don’t have to be a genius to know that but you should also know you are not a beggar and you have some options, like getting pre-approved before you decide to go car shopping. If you are pre-approved by one of our lenders you already know how much car you are pre-approved for and the interest rate. There are no tricks and gimmicks like the car dealers are so fond of.
The single most criteria for qualifying for a pre-approved car loan is some form of income. You need a total combined income of at least $1500 per month. Approximately 85% of applicants are approved which is very high. Our lenders want to do business with you. You click on this link which will take you to our lenders page where you will fill out a simple form. Within just a few minutes you will be pre-approved. You will either receive a check for the amount you are approved for to take to the dealer or you will receive a certification that guarantees your approval.
Take that to the dealer of your choice, select your vehicle and after taking a test drive sign the paper and drive home. One last thing, don’t let the dealer talk you into buying more car than you are approved for. Our lenders will know how much car you can really afford, while the dealer just wants to sell a car. If you buy more than you can afford, they take it back and you are walking again. Who wins on a deal like that – no one!
So let’s get you started! Here’s the starting place, have some fun car shopping with the peace of mind that you are in charge! Good Luck!
Posted by admin on August 11, 2010
By EILEEN AJ CONNELLY
The Associated Press
Monday, July 12, 2010; 11:08 AM
NEW YORK — The credit scores of millions more Americans are sinking to new lows.
Figures provided by FICO Inc. show that 25.5 percent of consumers – nearly 43.4 million people – now have a credit score of 599 or below, marking them as poor risks for lenders. It’s unlikely they will be able to get credit cards, auto loans or mortgages under the tighter lending standards banks now use.
Because consumers relied so heavily on debt to fuel their spending in recent years, their restricted access to credit is one reason for the slow economic recovery.
“I don’t get paid for loan applications, I get paid for closings,” said Ritch Workman, a Melbourne, Fla., mortgage broker. “I have plenty of business, but I’m struggling to stay open.”
FICO’s latest analysis is based on consumer credit reports as of April. Its findings represent an increase of about 2.4 million people in the lowest credit score categories in the past two years. Before the Great Recession, scores on FICO’s 300-to-850 scale weren’t as volatile, said Andrew Jennings, chief research officer for FICO in Minneapolis. Historically, just 15 percent of the 170 million consumers with active credit accounts, or 25.5 million people, fell below 599, according to data posted on Myfico.com.
More are likely to join their ranks. It can take several months before payment missteps actually drive down a credit score. The Labor Department says about 26 million people are out of work or underemployed, and millions more face foreclosure, which alone can chop 150 points off an individual’s score. Once the damage is done, it could be years before this group can restore their scores, even if they had strong credit histories in the past.
On the positive side, the number of consumers who have a top score of 800 or above has increased in recent years. At least in part, this reflects that more individuals have cut spending and paid down debt in response to the recession. Their ranks now stand at 17.9 percent, which is notably above the historical average of 13 percent, though down from 18.7 percent in April 2008 before the market meltdown.
There’s also been a notable shift in the important range of people with moderate credit, those with scores between 650 and 699. The new data shows that this group comprised 11.9 percent of scores. This is down only marginally from 12 percent in 2008, but reflects a drop of roughly 5.3 million people from its historical average of 15 percent.
This group is significant because it may feel the effects of lenders’ tighter credit standards the most, said FICO’s Jennings. Consumers on the lowest end of the scale are less likely to try to borrow. However, people with mid-range scores that had been eligible for credit before the meltdown are looking to buy homes or cars but finding it hard to qualify for affordable loans.
Workman has seen this firsthand.
A customer with a score of 679 recently walked away from buying a house because he could not get the best interest rate on a $100,000 mortgage. Had his score been 680, the rate he was offered would have been a half-percent lower. The difference was only about $31 per month, but over a 30-year mortgage would have added up to more than $11,000.
“There was nothing derogatory on his credit report,” Workman said of the customer. He had, however, recently gotten an auto loan, which likely lowered his score.
Studies have shown FICO scores are generally reliable predictions of consumer payment behavior, but Workman’s experience points to one drawback of credit scoring: the automated underwriting programs lenders use can’t always differentiate between two people with the same score. Another consumer might have a 679 score because of several late payments, which could indicate he or she is a bigger repayment risk. But a computer program that depends just on score won’t consider those details.
On a broader scale, some of the spike in foreclosures came about because homeowners were financially irresponsible, while others lost their jobs and could no longer pay their mortgages. Yet both reasons for foreclosures have the same impact on a borrower’s FICO score.
In the past too much credit was handed out based on scores alone, without considering how much debt consumers could pay back, said Edmund Tribue, a senior vice president in the credit risk practice at MasterCard Advisors. Now the ability to repay the debt is a critical part of the lending decision.
Workman still thinks credit scores alone play too big a role. “The pendulum has swung too far,” he said. “We absolutely swung way too far in the liberal lending, but did we have to swing so far back the other way?”
Webmasters Note: If you need credit help we offer solutions from Bankruptcy help, credit cards, bad credit Auto Loans (approximately 85% approval) and more including Legal Credit Repair attorneys and our 1-800BadCredit website has more.
