Strategies to Avoid Car Repossession

Is Car Repossession a Reality for you?

Do your car loan payments keep you awake at night? Are you threatened by repossession of your car? If you are finding it difficult to manage your payments, you are not alone. There are thousands of Americans who are suffering from the same problem.

Why should you avoid Car Repossession?

You may think that there is no other option than to let the lender take away your car. But, it is important that you leave no stone unturned in avoiding car repossession because of the following reasons:

>> You will not have a car to drive after car repossession

>> It stays on your credit report for seven years

>> People with car repossession do not get car loans easily

>> You will have to pay the balance due on your loan after car repossession

>> Lenders may sue you for the costs associated with repossession of a vehicle.

What Strategies should be followed to avoid Car Repossession?

Car repossession is bad because it has catastrophic complications. So, it is essential that you avoid it with the help of the following strategies:

Make a Few Payments

No lender will repossess your car even when there is a chance of getting back a part of his investment. So, it is important that you make a few payments. It will help you in avoiding car repossession.

Do not worry if unemployment and lack of job opportunities have caused a terrible cash crunch. You can raise money by selling a few of your belongings such as jewellery, extra furniture and other appliances.

Apply for Deferment

Lenders want to do business and earn money. They lose money when they repossess a car because of the following reasons:

a. They have to undertake unnecessary paperwork

b. They have to bear the repossession costs

c. They are unable to generate enough money by selling the car at an auction

d. They still have to recover the balance due on the loan from you.

So, whenever you face the possibility of car repossession, work with your lender. There are chances that he may provide you a deferment of a month or two. The time period is enough to find a new job.

Opt for Loan Restructure

If you can manage a smaller monthly payment, you can ask the lender to restructure your loan. He will extend the loan term and reduce your monthly payment amount. You should not worry about the high amount of interest that you will pay after loan restructure because you can refinance the loan in future.

Sell the Car

If your family has more than one car, you sell your car and share the other car/s with your family members. It will help you avoid the bad credit ratings that accompany repossession.

Remember that selling your car is an option only when your car has equity in it. If you owe more to the lender than the car’s current value, you won’t be able to repay the lender.

Ask for Help

A friend in need is a friend indeed!

If you cannot sell your car or make smaller payments, ask a friend or a family member to help you make payments. If someone agrees to assume the responsibility, you can transfer the title to his name.

Being in a financial crunch can be distressing, but do not lose hope. By employing the strategies mentioned in this guide, you can work your way out of this terrible situation.

Rapid Car Loans is an online automobile financing company that provides low rate auto loans to people with repossession in past. Contact the company and learn more about quick auto loan approval.

Finance Shopping for Used Cars

When shopping for a pre-owned vehicle, you expect to see a lower sticker price that will save you some cash. While it’s possible to save money going this route, most used car buyers still need to consider financing. Shop around for your loan to make sure the terms are advantageous for you.

Shop Lenders

You have several different lender options when you want to finance a pre-owned vehicle. You can deal directly with a dealership or you can hammer out a loan with a credit union or traditional bank. A loan from a dealership might seem tempting because it’s so simple to orchestrate, but it’s likely that you will pay for this convenience with higher interest rates. A bank or a credit union will probably offer you more attractive rates and terms than a dealership. One option is to negotiate your best deal with a bank or credit union and then take these terms to a dealership to see if the dealer will match them.

Shop Loans Quickly

As you navigate the loan shopping process, don’t take your time. Optimally, you should complete this process within only one to two weeks. The reason for the fast-paced shopping is because every time you apply for financing, your credit score receives a small hit. These soft hits are nominal and they don’t stay on your credit report for long, but they can have an impact. The impact could be higher depending on the number of inquiries that hit your report. Keeping the time period relatively short will lessen the total effect on your credit score.

Check Current Rates

Interest rates will have a significant effect on the overall feasibility of used cars financing. Lenders set interest rates according to borrowers’ credit scores, so the better your score, the better your interest rate should be. Your score is determined by your payment history, your current debt load, and the time period of your total credit history.

Loan Term

The term of a loan has a big impact on the total price paid for used cars. A loan over a longer period of time will require the borrower to pay more in interest over the term of the financing. If you have the choice between a shorter and a longer term, you will probably notice that the longer term has lower monthly payments. While this can be tempting for your month-to-month budgeting, remember that you will be paying more overall for this longer period. Shortening the financing period will result in higher monthly payments, but you’ll pay less in interest to the lender.

Check Lenders

Before making a final decision, do your homework to check into the reputation of a company. Both the federal and state governments regulate lenders to ensure that they adhere to laws and regulations. Call your attorney general’s office to inquire about a specific company. The Better Business Bureau also has information about businesses that will enable you to know whether the company is reputable.

Shopping for financing can be as challenging as shopping for used cars, but the time is well spent to ensure that you get a fair deal.

Car Sales on Finance – What You Need to Know

Buying a used or new vehicle on finance gives you the freedom to purchase what you want and pay the vehicle off in monthly instalments. Once you have completed all the payments, the vehicle becomes yours.

This can be very beneficial when it comes to working with a limited budget. Not everyone has the financial freedom to purchase a vehicle for cash, especially when looking at younger models which comes with all the latest technology and safety features.

One of the benefits to looking at car sales on finance is that you can trade in your current vehicle as a part exchange. This enables you to get a value on your current vehicle, which is deducted from the asking price of the new vehicle. This gives you a lower amount which needs to be financed, helping to reduce the monthly instalments and helping you match your monthly budget on what you can afford.

When looking at car sales on finance you get to make regular monthly payments for the vehicle, rather than paying the amount in one large sum. This gives you wider freedom to find what you are looking for. Further if you do your budget before you start shopping around, you will have indication on what you can afford to pay each month, if you qualify, you can buy a vehicle based on the monthly payment amount after trade in, rather than the overall price, and you may be pleasantly surprised.

In addition to this, you have the flexibility to determine how long you want to make your payments for. This is normally twelve to sixty months. Of course taking it over a longer period will mean you pay more interest, but your monthly repayments will be considerably less than if you only take the finance for twelve months. Be realistic in your decision, based on your current working situation and what you feel you can afford in the long term.

The car dealer you are looking at that offers car sales on finance should give you the ability to apply for credit either online or over the phone. This does require a credit check, so it may be worthwhile obtaining a copy of your credit report to identify what your score is. Don’t worry not everyone has a perfect score, but obviously the better it is the higher your chances are of obtaining the credit you need.

If you have a tarnished credit score due to problems years ago, advise the car dealer before going ahead with the application. Some car sales on finance do take this into consideration and are willing to provide finance to those with a poor credit rating.

Another thing you will find when choosing a reputable company offering car sales on finance is that you can enjoy an instant decision. Five minutes online or a quick phone call can give you the answer you need. If approved, you could be driving away in your new vehicle within the hour.

Always ensure that you only select a reputable car dealership that has built up a good name in the industry. You want a company that is going to provide you with a complete service, helping you find the best vehicle to meet your need with a flexible finance package that also suits your budget.

Do your research to learn as much about the company as possible. Double check the vehicle comes with some form of warranty and identify who they use for the credit solutions.

Read through the paperwork in detail before signing, ensuring you know what to expect and what your monthly repayments are moving forward.

Withnell Car Sales is a family run business with over twenty five years’ experience. This well-established company provides car credit and finance to everyone looking for a good quality second hand car. The company offers a choice of used cars which are updated on a regular basis, all of which are advertised with photographs to help customers identify the best choice for them. Withnell Car Sales also offer a range of credit packages to meet their customer’s personal needs and a five minute credit check is also available on their easy to use and secure website. Customers can apply for finance, choose their vehicle and drive away within an hour.

Find Out If You Are Ready to Become a Co-Signer

It is true that we must help those who are in need. But, you must remember that you can help others only when you are in a position to help. So, before agreeing to co-sign a car loan contract for a friend, a family member or a colleague, you must understand your financial situation and ascertain whether you are eligible to become a co-signer.

Can I Co-Sign a Car Loan Contract?

Even if you are eager to help someone in buying a car, you should consider the following factors before co-signing a car loan contract:

Credit Score

A good credit score is the pre-requisite for becoming a co-signer. If you have a bad credit score because of late payments, missed payments, bankruptcy, etc., lenders will consider you unfit for becoming a co-signer.

Debt-to-Income Ratio

Debt-to-income (DTI) ratio manifests the percentage of your gross monthly income that goes towards paying debts. A higher ratio ensures the lender that you have money to make payments if the primary borrower (the person whom you are co-signing for) misses them. So, it is very important to have a good DTI ratio for becoming a co-signer.

Future Purchase Plans

If you are thinking of buying a home or a car in the near future, you should not co-sign for a car loan contract. Potential lenders will consider it as your loan and include it in your total debt while calculating debt-to-income (DTI) ratio. It means your DTI ratio will reduce even when you have not actually purchased any new asset. Additionally, it will create a problem for you in opening a new line of credit.

What are the Consequences of Co-signing a Car Loan Contract?

It is a huge financial responsibility to become a co-signer for someone. So, before you make any commitments, it is important to understand the following consequences of co-signing a car loan contract:

Responsibility of a Car Loan Contract

When you co-sign a car loan contract, you become responsible for the loan. If the primary borrower dies, loses his job or doesn’t make payments, you will be required to pay the total loan amount as well as the late payments fees that are charged by the lender.

Responsibility of Regular Payments

It is not mandatory for the lender to contact you and provide information about missed payments. But it is your responsibility to ensure that regular monthly payments are made to the lender.

Impact on Credit Reports

Many individuals ignore the impact that co-signing has on their credit reports. You must remember that the car loan contract will not only be visible on the primary borrower’s credit report, but it will also appear on your credit report. Additionally, if the primary borrower does not make regular payments, it will affect your credit score negatively.

Bottom Line

Do not be in a hurry to help your friend or family member in buying a car. If you make a hasty decision of signing on the dotted line, you will end up ruining your credit score as well as your financial stability. So, understand your financial health and know your responsibilities as a co-signer to make an informed decision.

If you are ready to co-sign for a friend or a family member and are looking for an affordable car loan, choose Fast Auto Loan Approval. The online car financing company will help you in finding low rate car loans quickly. Apply now for no obligation quotes today.

Auto Title Loan – Your Car Is Your Treasure-House

Are you in need of cash? Have you exhausted all your options but unable to find a solution to your cash problems? Even financially stable families may get caught in financial crises. Prolonged illness, loss of a job or any other unforeseen event may compel you to look for quick financing options.

If you are trying to obtain a short-term loan to end your financial crises, you may have heard of the following advertisements related to auto title loans:

1. Get Cash for your Car!

2. Get Quick Cash!

3. No Credit Check required!

Auto title loans are prevalent in several American states. It is popular among borrowers because the loan program is easy to obtain. You may have heard about it from your neighbors or friends. If you are interested in obtaining the loan program, you must only join the club after understanding it thoroughly.

What is an Auto Title Loan?

According to Investopedia, it is a short-term loan in which the borrower’s car title is used as collateral.

To obtain the loan program, you will have to allow the lender to place a lien on your car title. Also, you will have to surrender the original title to the lender.

What is the Difference between an Auto Title Loan and an Auto Pawn Loan?

An auto title loan allows you to obtain cash and end your financial crises by pledging your car as collateral. The lender will require the title of your car and not take possession of your car. But, if you obtain an auto pawn loan from a lender, you will have to surrender your car along with the title of your car.

What are the Requirements for getting an Auto Title Loan?

If you want to obtain the loan program, you have to fulfill the following requirements:

1. You should be at least 18 years old.

2. You must have the original title of your car.

3. There should be no lien on the car.

4. The car should not be older than 15 years.

What Documents are required for getting an Auto Title Loan?

Following is the list of documents that are required for getting the loan program:

1. Identification Proof

2. Age Proof

3. Income Proof

4. Original Title of your Car indicating No Liens

5. Utility Bills

6. Vehicle Registration and Insurance

What is the Process of getting an Auto Title Loan?

Just like any other loan program, you have to submit an application form to the lender. The lender will consider your financial situation and analyze the worth of your car. Do not worry if you have bad credit history. If your car is valuable and you have a stable income source, the lender will approve your loan application.

Obtaining an auto title loan is simpler than you think! If you have ownership of a car, you can use it to get out of your financial troubles. Truly, your car is your treasure-house. Use it in times of distress.

Rapid Car Loans will help you in times of financial troubles. Apply with the online auto financing company for quick auto title loans without worrying about your credit history. Apply now.

How to Get a Car Loan When You Are New to America?

Born abroad but now living in America? One thing is common for all immigrants: you cannot remain unaffected by the car culture of America. The car is the dominant mode of transportation in America. You need it to go places. And, a car loan is the only mode for obtaining an automobile.

Why is a Car Loan compulsory for buying a Car in America?

It is not compulsory for making a car purchase in the country. But, it has become a norm because of the following reasons:

>> High Cost of Automobiles

>> Lower Buying Capacity of Car Buyers

>> Easy Loan Approval by Lenders

>> Easy Way of Building Credit

Buying a car with the help of a car loan is very common in the country. People opt for a car loan even when they have the required amount of money because they do not want to part with their savings. Also, it helps them in building a credit score that is required to make a big purchase such as a home.

How to obtain a Car Loan when you are New to the Country?

If you are a new immigrant and want to obtain a car loan, you will have to provide valid proof of your identity. Lenders require your SSN (Social Security Number) for the purpose of identity verification. The SSN is issued to the following people:

>> Natural Born U.S. Citizens

>> Naturalized U.S. Citizens

>> Legal Permanent Residents

>> Temporary (Working) Residents under section 205(c)(2) of the Social Security Act

If you have a valid SSN, obtaining a loan will become effortless for you. Simply provide your SSN details along with the following information for obtaining loan approval:

>> Employment Information

>> Income Details

>> Residential Information

>> Information related to other Debts and Utility Bills

How to obtain a Car Loan without a Valid SSN?

If you are a new immigrant and have not received a valid SSN from the Social Security Administration, do not worry. You can obtain a car loan. Choose a lender who doesn’t demand SSN, instead accepts any of the following documents for the purpose of identity verification:

>> TIN (Taxpayer Identification Number) issued by Internal Revenue Service

>> Foreign Driver’s License

>> Foreign-Issued Passport

>> U.S. Government-Issued ID

Search for a lender who doesn’t require SSN and apply with him/her. You can make use of the internet and make your loan search comfortable.

While searching online, make sure that you choose a reliable and reputed website. It will save you from identity frauds.

Now that you know everything about obtaining a car loan in America, you should not be apprehensive. Remember that America is the Land of Dreams! If your dream is to buy a car, no one can stop you from becoming a proud owner of a car.

Fulfill your car dream with RapidCarLoans.net. Apply with the secure website and obtain guaranteed auto loan approval. Special sub-prime auto financing is available for bad credit car buyers. Apply now.

Bad Credit Car Loans Steadily Gaining Popularity Amidst Economic Stagnation

Personal loans are common across the society since the historic times. These can be broadly categorized as secured and unsecured personal loans. It is easier for everyone to avail unsecured personal loans as compared to the secured ones. The sum of money involved in this category of transactions is usually petite, ranging between hardly a few hundred dollars at the most. In order to avail the type of facility, a borrower, usually, does not need to put up any asset as collateral. As such, the individual’s credit score is hardly taken into account while providing the facility. However, in some instances, lenders charge higher interest rates to borrowers with dismal credit scores, on availing unsecured personal loans.

On the other hand, to avail secured personal loans, borrowers need to put up some asset or the other as collateral. As such, rate of interest involved in this range of loans is usually more reasonable as compared to the other variety. Because of the collateral asset, lenders offer secured personal loans at lower interest rates. Thankfully, both the types of loan allow monthly installments to borrowers to repay the money. In a recent development, a range of registered money lending agencies is readily providing loan to people with bad credit. To avail the unique facility, however, one has to own the clear title of a car, truck, van or SUV. The amount of money disbursed as loan is determined by the condition of a vehicle in question.

The range of loans is steadily gaining prominence and is facilitating life for scores of people by resolving their small economic needs. The unique monetary facility is more popularly called bad credit car loans. Stagnant economy is compelling the corporate sector to downsize its workforce. Lay-offs, unemployment and pink slips are rampant across the industrial domains these days. In short, innumerable folks are suffering from low credit score. Conventional lenders refuse to give loans to these people for obvious reasons. Actually, these folks invariably fail to meet the eligibility criteria of the conventional lenders. Thus, it is indeed an uphill task for these people to secure money to combat unforeseen emergencies.

The best part about vehicle equity loans is it allows users to keep and maintain their vehicles during the loan period. Volume of business for the category of lenders is increasing at an exponential pace. An increasing number of folks who need cash on bad credit unhesitatingly approach these unconventional money lenders. Professionals working in these financial establishments maintain impressive level of professionalism and never reveal their clients’ identities to third-parties.

When the loan is repaid on time, a negligible sum is levied as interest. There is no penalty on early repayment of these loans. As there is no credit check, money is handed over fast to borrowers while availing loans with bad credit. In fact, money is handed over hardly within a few hours of filling the loan application. While availing such facility, it is advisable for the borrower to carry a photocopy of the driving license and a few other relevant documents. However, professionals working in these money lending agencies will definitely provide extensive list of documents that borrowers need to furnish well in advance.

Arjun Das Gupta is a prominent online blogger who conducts extensive research on bad credit car loans in Canada and surrounding areas. According to him, these are the best tools for folks who need cash on bad credit.

Car Finance Tips for People With Bad Credit

If you want to buy a car, you may have realised that:

>> You have some bad credit as a result of some issues in the past that are listed in your credit file; and

>> Your local bank branch has determined that you are not eligible for a car loan.

Do not worry. You are still eligible for a car loan because lenders/credit providers do provide second chance to people with bad credit. However, you will need to:

>> Show the lender/credit provider that you have improved your credit history; and

>> Have a reasonable explanation for any defaults listed in your credit file.

When you have bad credit, you need to put in extra efforts and ensure the lender/credit provider of regular payments. Here are five important tips that you should consider and which may benefit you:

1. Take the Time to Clean Up Your Credit File

This is the most obvious tip, which you can do on your own before applying for a car finance. Following are a few ways of cleaning up your credit file:

If you have any issues on your file that can be paid, you should pay them off as quickly as you can.

>> If you have any bad credit listings that you are disputing with a creditor, you should address these issues as quickly as possible and try to come to some resolution with the creditor.

>> If you cannot come to a final resolution, you should get some assistance from an intermediary that can mediate for you such as the industry ombudsman or a solicitor.

2. Provide a Reasonable Explanation of any Adverse Credit History

If you have any adverse credit history listed in your file, the lenders/credit providers will require you to provide a reasonable explanation as to why you obtained the adverse credit history, and they will need to be satisfied with your explanation.

3. Speak to a Qualified Professional

It is wise to speak to a professionally qualified finance broker as he/she:

>> Deals with a number of lenders/credit providers on a regular daily basis, and he/she should know the credit policy requirements and guidelines of each and every lender/credit provider;

>> Can advise you of the “steps” you can take to rectify your credit history, and also the “time frames” required to be undertaken by you; and

>> Can advise you and show you ways of demonstrating your stable financial condition to the lender/credit provider.

4. Wait for Your Bad Credit to be Automatically Removed from Your Credit File

When you have paid and settled any outstanding/unpaid matters appearing on your credit file, they will drop off your credit file automatically. You may consider applying for a car loan after they are removed from your credit file.

5. Be Careful and Don’t Apply for too many Loans

Remember, you should only place credit enquiries on your credit file that are necessary. It is because every time you apply for any type of credit, the lenders/credit providers are required to place an enquiry on your credit file. So, when they review your credit file, they will be able to see all the credit enquiries you have made. Also, you may even find yourself being listed as a bad credit client due to several enquiries made on your credit file.

Un-discharged from Bankruptcy

If you are currently un-discharged from a bankruptcy or a Part IX debt agreement, it would be almost impossible to obtain a car loan. In such a situation, you will need to have your bankruptcy or Part IX debt agreement discharged. Also, you will have to wait for a couple of months (minimum 12 months) before applying for a car loan.

Now that you know the five important tips for buying a car with bad credit, do not worry. Follow the tips and get ready to buy your favourite car.

Singh Finance is a reputed Australian finance brokerage firm that employs a team of expert and professionally qualified finance brokers who will welcome the opportunity to obtain a pre approved car loan for you. They will even help you find suitable comprehensive motor-vehicle insurance for car. Call on 0424 190 908 or enquire online now.

Factors To Consider Before Getting A Car Loan

Unless you will be paying full for the car you are considering of buying, you will surely need a car loan. However, with plenty of competing auto loan products in the market today, how will you choose the best? Well, experts have indeed provides some tips so you can get the best auto loan.

Things To Consider Before Making Your Final Choice

Interest rates for every car loan product – Basically, there are 2 types of interest rates applied for car loans. First is the fixed interest rate wherein rates are calculated every month depending on the total amount the client borrowed. Second is the reducing balance interest rate wherein rates are computed monthly basing it from the amount the client currently owes the bank. In some other banks, profit rate usually is computed by dividing the markup profit by the purchase cost.

Payment plan in every loan product – It is very crucial for a possible borrower to evaluate such payment plan as this allows the borrower to plan financially during the duration of the loan. In some countries, the maximum period for a loan is fixed at 6 years. There are also other banks offering borrowers the option to pay lesser amounts monthly and settle the remainder in bulk.

Inquire about the processing fees up front – As a possible borrower, it is very crucial for you to ask about such so that you will be aware of all of the cost associated with the car loan. Lots of banks indeed allow borrowers to extend the duration of the loan. But in case you want to settle your loan as soon as possible, ask if you must pay an early settlement fee.

Necessary documents that must be submitted – Potential borrowers are oftentimes required to submit salary certificates, copies of their passports, and banks statements. Some banks might even require them to submit at least 3 local references with or without a copy of a utility bill. Be reminded that documentation as well as vetting requirements varies from one bank to the other. If you have all of these documents and requirements at hand, your loan application might become a lot easier and faster.

Perks included in the loan product – To entice as many potential borrowers as possible, there are lots of banks that offer added benefits – from credit and debit cards to free registration and extended warranties. Although some of these bundled offers might seem very appealing to you, be cautious about the possible added costs attached to it.

These tips will certainly help you get the credit card suitable for your needs.

One way of getting the car you want, most especially when you do not have enough finances yet is through a car loan. Learn how such loan can be approved easier and faster now. More information mentioned here.

How to Deal With An Auto Loan After Divorce

Divorce is not only emotionally difficult for you but it is also difficult for your financial condition. How?

When a marriage ends, individuals split assets and go separate ways. But, what happens to liabilities such as an auto loan?

In an ideal world, both the individuals assume the responsibility of the debts they created and part ways. Unfortunately, the reality is different. So, take care of debts after a divorce.

The Legal Liability of an Auto Loan

Do not believe that just because the divorce agreement holds your former spouse responsible for the auto loan, he/she will make regular payments. It is plausible that he/she may not make payments.

You must remember that the divorce agreement is separate from your loan contract. Lenders do not give importance to the divorce agreement. Your former spouse may be responsible for the loan in the eyes of a court. But, if you applied for a joint auto loan, lenders will hold you accountable for the loan as well.

How to manage an Auto Loan after Divorce?

It is important to remember that your marriage may be history, but a loan will continue to affect your present and future. Here’s how you can manage your auto loan and save your credit score from plummeting.

1. Get rid of the Loan

After a divorce, the best way to manage an auto loan is to get rid of it. If your former spouse is responsible for making payments, the loan should be in his/her name only.

But, remember that no lender will remove your name from the loan contract because of your changed marital status. So, your former spouse will have to refinance the loan and complete the loan process individually.

2. Get rid of the Car

If you are worried about refinancing the loan, you can sell the car and pay off the lender. It is possible that an upside down loan situation may force you to pay money to the lender, but it is important to understand that a loss today is better than constant tension forever.

3. Make sure the Lender gets paid

If your former spouse is responsible for the loan and both of you decide against selling the car, you will have to make sure that he/she makes the payments regularly.

If your former spouse doesn’t make payments, contact your attorney. It is possible that you will have to make a couple of payments to avoid any negative impact on your credit score. So, keep aside a part of your income for it.

Taking care of your auto loan might be the last thing on your mind. But, it is important to understand that your marriage is over and not your auto loan. If you don’t manage it effectively, you may ruin your credit score forever.

Recently divorced? Rapid Car Loans will help you. It is an online bad-credit auto financing company that provides quick low rate car refinance. Apply now; buy a car today.