Avoid Bad Credit: Four Car Buyers that are not Cut Out for an Auto Loan

Did you know one of the rites of passage that every American goes through is buying a car? Having an automobile in your name is much more than a buying decision. Emotions and feelings are attached to your first vehicle. Additionally, an automobile has the potential to make or break your future financial stability. So, you must take every step with caution and due diligence.

Car Buying Tips: Do not become one of these Buyers

If you are unable to make timely payments or you end up in an upside-down car loan situation, it will affect your credit report. To make sure you do not fall down the rabbit hole of a bad credit score and crushing debt, you must make prudent decisions. Do not be like any of the following car buyers and avoid a terrible auto loan:

1. The Show Off

You may be excited about buying a car. An expensive automobile is a big step up the social ladder. However, you should not be the Show-Off car buyer because they end up with terrible auto loans. Focus on buying a car that is within your means. Choosing a car beyond your budget puts you at risk of repossession. There is nothing good about repossession because it will stay on your credit report for years.

Having the blemish of repossession or bankruptcy on your credit score will put you at a disadvantage. It will prevent you from getting lower interest rates for a long time. So, do not be a Show-Off. Learn what kind of car you require. Find out who all be driving your vehicle, and then shortlist a few models that match your budget. Be the Prudent Guy!

2. The Payments Guy

When you are only worried about the monthly payments on an auto loan, you stop looking at the big picture. The Payments Guy is only concerned about the lowest monthly payment amount. But a small payment amount does not translate to better savings.

Lenders often attract customers by offering smaller monthly payments over extended loan terms. It means the car buyers end up paying more money in the form of interest rates. Additionally, you also run the risk of an upside-down car loan situation. For example, the total loan amount after deducting the down payment is $20,000. You opt for a loan term of 60-months with an interest rate of 8%. The monthly payment amount will come to $405.53, and you will pay an interest amount of $4,331.67%. Now, if you request the lender for a lower amount of $350, your loan term will extend to 72-months, and you will have to pay a total interest of $5247.87.

Do not focus only on the monthly payment. Instead, discuss the loan term and APR as well. Find out if there is any pre-payment penalty involved or not.

3. The Lone Warrior

The Lone Warrior is a car buyer who sets out to buy a car on his/her own. The car buying process is a complex one. It can be overwhelming, especially when you are making it on your own. Emotions can come in the way of making prudent decisions. It always best to bring a friend when shopping for a car. It helps to have a third set of eyes so that he/she can be objective in your process and ensure that you make the right financial decision.

Often, the Lone Warrior believes in taking care of the financing process of their own. However, it is a fact that having a co-signer helps in getting quick auto loan approval and better interest rates. So, convince your colleague, friend, or family to become a co-signer for your auto loan and enjoy faster pre-approval.

4. The No-Savings Buyer

The auto financing industry is built on the truth that car buyers do not have sufficient money to fund the vehicle. However, it is a wrong move to opt to buy a car with zero savings. Even if you do not have money to make a down payment of 20%, it is wise to save up money for car-related emergencies such as fuel-change, repairs, and maintenance. It will ensure that you do not seek out exorbitant personal loans to take care of your car.

When you decide to buy a new car, consider the amount of monthly payment that is comfortable for you. Set aside the payment amount of at least three months so that you can make regular payments even if your income source is affected due to any reason. When you do not have money for a down payment, you can always apply for zero down payment auto loans, but when you do not have savings to fall back on in times of emergencies, it will affect your credit score terribly.

Say No Terrible Auto Loans and Bad Credit Score

As discussed earlier, your car buying decision has the potential to build your credit score. If you make cautious and practical choices, you will enjoy the best interest rates for years to come. But, if you choose the emotional option, it may affect your financial situation severely. Say no terrible auto loans and avoid the troubles of a bad credit score by becoming a prudent car buyer.

Did you know online auto lenders offer specialized first car loans? Whether you have a bad credit score or a zero-credit history, you can apply for guaranteed auto loans and buy a car at low-interest rates. Bad credit no down payment auto loans are also available.

2021 Car Buying Resolutions: Set the Right Goals for the New Year

The end of 2020 was one of the most awaited and anticipated part of the year. Now that we can finally bid goodbye to 2020, we welcome 2021 with new hopes and in regards that it will be a better year. With the onset of a new year, we will all set our resolutions. New Year resolutions can vary from joining a gym, spending more time with loved ones, or travel more often. However, if you want to buy a new car, setting new year resolutions related to your goal will help you in making the right choice.

Car Buying in 2021: New Year Resolutions to get the Right Deal

The following resolutions will help you pick the right car deal in no time.

1. Pick Cars over Mass Transit Options

A self-owned car has proved to be much more convenient and safer in the past year. Many regular commuters have discarded the option of riding on a subway or a train. A car is a safe mode to commute to work, school, or run errands daily. Additionally, cab-hailing services such as Uber are also not a preferred option during the pandemic. Moreover, you should road-trip in your car with loved ones instead of flying for the trip because it is the safer option. In conclusion, your resolution for 2021 should include a self-owned car for safe travels.

2. Reliable and Feature-Rich Car for Young Ones

Many countries all over the world are preparing to launch a vaccine in the year 2021. Post the release of a vaccine and the reopening of colleges and schools, look into purchasing a car for your younger one. Focus on finding a vehicle that is reliable, safe, and beginner-friendly. The Honda CR-V 2021 has gained applause for being a spacious, compact SUV with safety features such as road departure warning, collision mitigation brake system, and traffic sign recognition. You can even check other options before you make the purchase.

3. Maintain your Car & Credit Score

Just as changing the oil of your car is a necessity, so is maintaining your credit score. Regularly look at your credit reports and correct any fallacies that may have gone unnoticed in the past year.

Additionally, pay off your previous debts before you apply for an auto loan. Be consistent with your payments. Work on improving your debt-to-income ratio before you set out to purchase your next car. In the end, make it a resolution to maintain your car and credit score for a robust financial future.

Resolutions for Better Car Deals and Improved Driving Skills

Just thinking of buying a new car will not help you to achieve your goal. Research for the kind of car you want to buy; and focus on improving your credit score to enjoy a better deal.

Additionally, get working on your resolutions to improve your driving habits. Resolve to become a courteous driver and ditch road rage. Make distracted driving and using phones while driving a thing of the past. Let us enter 2021 with an evolved sense of driving!

Do you want to buy a new car in 2021? Make the right car buying decision with a reputed bad credit auto financing company in America. No cosigner car loans are available for young car buyers.

Winter Car Buying Tips: Benefits of a Pre-Approved Car Loan in the Colder Months

Winter is right around the corner with the warm festivities of Thanksgiving and the start of great car deals. A lesser-known fact amongst car buyers is that the winter season is one of the best times to purchase a car. Early winters are the time when dealers try to clear the inventory of the current year before moving into a New Year. 

With less than two months to the close of the year 2020, huge discounts and great car deals are on their way to you. However, the best way to make the most of buying a car in the cold season is to get a pre-approved auto loan.

Why get a Pre-Approved Car Loan this Winter Season?

The power of a pre-approved car loan deal at the end of the year is a road to savings. Let’s find out how:

1. Simplified Car Buying Process

A pre-approved auto loan helps you in more ways than one. You step into the dealership with clarity on the budget, the available car options you can choose from, and the payments that you will be making. Many times, you may overspend on a car when you do not have a clear picture of how much you can afford to pay. However, a pre-approved auto loan will simplify your budget, payments, car options, and your choice to shop around to see who gives you the best winter car deal.

2. Powerful Negotiation

The pre-approved auto loan is the fundamental element of car buying in the winter months. You can negotiate your way to a great interest rate and overall cost-effective car deal with the help of a pre-approved auto loan. In the cold months, when the footfall is less, dealerships are under pressure to close car deals. A pre-approved auto loan will become the offer that a dealer will have to accept if they wish that you purchase the car from their dealership.

3. Easy Approval

A pre-approved car loan means that you tick all the right boxes for car buying, and you are creditworthy. An individual who shops with a pre-approved car loan deal is going to ensure a faster buying process. Moreover, the presence of a good credit score and co-signer can make a big difference in obtaining your new car. Also, you can take the help of online auto financing companies to get the best winter car loan deal. Once you have a great offer in hand, you can negotiate with the dealer to ensure the reduced price of the car.

A Snowy Guide to Win your Next Car

The benefits of a pre-approved car loan are not just in getting a new car but managing your savings as well. Winter months are the right time to strike a great car deal as dealers will offer more incentives to you. Also, they will be eager to make a sale and earn more commission! So, make the most of the car buying process during the winter months and get your favorite car home.

Do you want to buy a car to ensure a comfortable commute during the terrible months of winter? Apply now to get pre-approved car financing. Do not worry about your bad credit score. The sub-prime lending expert will help you get approval on bad credit auto loans.

Things to Keep in Mind While Buying A Car for Your Teenager

A car has become an absolute necessity for the commute; especially when it comes to teenagers. A personal vehicle to commute to school or college is essential when your kid reaches the right driving age. When you think about your kid driving his or her first car, the three things you think about are safety, reliability, and the cost-effectiveness of purchasing a car.

Choosing the Right Car for your Teenager!

Focus on the following points as you search for a car for your teenage kid.

1) Set Your Budget

Think about the car budget for your teenager before you dive right into the shopping process. While you set your budget into place, you will realize the cars that you can afford. Consider the amount that you are earning, the amount that you would require to pay each month, and different ways that you can cut off some of your expenses and pay them towards the auto loan.

Most teenagers struggle with no credit history and often require a co-signer. Make sure you or a relative are co-signing for your teenager to obtain attractive interest rates and a better car deal. If you do not know anyone with a good credit score, it is best to apply for no credit no co-signer auto loans in advance.

2) Used Car or New Car: Your Choice

Extensive research should be made before you decide on a used car or a new car. Before deciding on a car, ask yourself questions such as how much would your kid be traveling on an average, would another family member share the car, and what features or safety requirements are necessary for you. A new car is low-maintenance with superior fuel economy and advanced safety features whereas a used car is wallet-friendly with a lower loan amount.

Usually, for a first-time driver like your teenager, a new car such as the Toyota Corolla or the Honda Civic is a safer bet which will also provide a good resale value. You can shop around at your local dealership or take the help of online auto portals to search for cars.

3) Test Drive Till You Are Sold

Purchasing a car is a big investment. While many people may not give importance to a test drive, you should test drive your car until you are sold on purchasing it for your teenager. Be mindful of certain things while test driving such as measuring fuel efficiency by noting the odometer before and after the test drive.

You can also roll down the window to check if the car is making any unusual noises and check if the car gear is easy to drive for your teenager. You should clear all your doubts before you purchase the car and test driving is the best way to do it.

While you purchase a car for your teenager, make sure you are satisfied with the safety, reliability, and price point of the car. You can also get pre-approved for a first-time car buyer’s loan to get the best deal for your son/daughter.

Common Mistakes to avoid while getting a Bad Credit Auto Loan in California

According to a report by USA Today, California is the 6ththe most expensive state of United States of America. But, do not worry about expenses while buying a car in California. You can afford buying a car despite bad credit history. How? 

It is simple. Avoid these common mistakes while getting a bad credit auto loan and you will be able to make an affordable and easy car purchase in California. 

Mistake 1 – Ignorant of your Credit Score

Credit score is the pre-requisite of every financing process. If you do not your credit score, you will give the lenders and dealers a golden chance to dupe you. They will charge you high interest rate under the pretext of a terrible credit score. So, check your credit score. Also, research and find out the average interest rate that is offered by the lenders to people with similar credit scores. It will help you in creating a budget and save you from obtaining an unaffordable loan. 

Mistake 2 – Inaccurate Information

Inaccurate information is provided by car buyers in two situations: 

1. When you do not know the detail. 

2. When you decide to lie about the information asked by the lender. 

In both the situations, it is important to remember that the lender will ask for documents related to your employment, income and financials. So, there is no point in hiding any information from the lender because he/she will come to know of your lie eventually. 

If you are not honest about your situation, the lender will not have faith in you. Also, he/she will find it hard to approve your California bad credit auto loan as well. 

Mistake 3 – Disregard of the Fine Print

Reading the loan contract in detail before signing the dotted line is the most obvious advice given to a car buyer. Sadly, many California are so excited about buying a car that they forget to read the fine print. If you are obtaining a bad credit auto loan in California, it is important to read the loan contract. Take your time in understanding every aspect of the contract. If you have any doubt, contact the lender ASAP and ask him about your doubt. 

Mistake 4 – Misjudging your Financial Capacity

It is difficult to obtain an auto loan with bad credit history. So, when California bad credit car buyers get loan approval, they say yes to any and every kind of loan. You must not provide your assertion to a bad credit auto loan that you cannot manage. 

Also, do not opt for a long term loan because it allows you to reduce your current monthly payments. It is important that you calculate your monthly car-related budget and choose a bad credit auto loan program that is not hard on your budget. 

Mistake 5 – Choosing the Offline Way

Internet has helped thousands of California car buyers in making an affordable car purchase. You can use the web for: 

>>Obtaining information about models, features, price of the car 

>>Obtaining car reviews and ratings 

>>Comparing cars in your price range 

>>Getting in touch with dealers and obtaining quotes from them

The benefit of choosing the online way is that you can compare car models and its prices easily. Also, it offers the benefit of obtaining a pre approved bad credit auto loan quickly and easily. So, do not commit the mistake of choosing the traditional offline way of going to a dealer and getting a car from him. Go online, compare and save more. 

Buying a car with bad credit can be difficult if you make mistakes. Remember to stay calm during the car buying process and make an affordable decision. 

When it comes to obtaining low rate San Jose auto loans with bad credit, car buyers trust Car Destination. The bad credit auto loan expert guarantees instant bad credit San Diego auto loan approval and ensures no obligation loan quotes. Apply now.

5 Common Questions and Answers to make you ready for Instant Bad Credit Auto Loans

Magazines and newspapers publish car loan research studies daily. Each study tries to provide an instant solution to bad credit problem. Few studies may suggest you to seek help of a consultant while other smay advise you to pay off all your debts. But, freedom from bad credit problem is not very easy. It takes time because there are no instant results. However, there is an alternative for getting a car loan with bad credit history. It is called “Instant Bad Credit Auto Loans.”

What are the Benefits of Instant Bad Credit Auto Loans?

Here’s why instant bad credit auto loan program is beneficial for car buyers with bad credit problem:

• You can obtain quick car loan approval without any trouble of credit history

• You can get affordable interest rates and enjoy a fair chance of improving your credit score

• You can fulfill your car dream easily because the loan program is available across United States of America

Now that you have understood the benefits of getting instant bad credit auto loans, it is time to move ahead. Let’s get answers to the most common questions that you may have in your mind.

1. How to get instant approval on bad credit auto loans?

It is very simple to get instant approval on bad credit auto loans. You need to be at least 18 years old for submitting the loan application. Your gross monthly income should be $1500 or more than that. Also, there should not be bankruptcy or repossessions in your recent past.

2. What should I do if my credit score is very poor?

Don’t take tension if you have a very poor credit score (i.e. your credit score is below 580). Instead, you should focus on convincing the lender. You can show copies of recent pay-slips or provide Employment Verification Letter to the lender. It will help the lender in judging your current financial situation. You can even get a co-signer or down payment to strengthen your loan application.

3. How much down payment is required for instant bad credit auto loans?

Down payment lowers the loan amount and so, it is ideal for car buyers. It is even better for a bad credit borrower because it manifests his/her stable financial condition to the lender. If you have bad credit score, you must manage a minimum of 10% down payment. Remember that if you increase the down payment amount, your approval chances will also increase.

4. Do I need to bring a co-singer for signing the auto loan contract?

A co-signer is not compulsory for getting approval on instant bad credit auto loan program. But, it is advisable to have one. If you have someone with a good credit score as your co-signer, the lender will have no tension of getting back his/her money. So, he/she will approve your loan request easily.

5. Will a dealer or lender approve my loan application?

Lenders and dealers have different approval criteria. Traditional lenders are very strict in approving loan applications. They don’t approve loan requests of bad credit car buyers. But, dealers have no problem in providing loans to people with troubled credit history. So, usually a dealer will offer you a bad credit auto loan quote.

Don’t worry if a dealer approves your loan request. It shouldn’t matter who approves your car loan application. You must focus on the loan details like the loan amount, interest rates, fees and penalty. It will help you in choosing the best instant bad credit auto loan program.

So, this is what you need to know about instant bad credit auto loans. I hope this article solves all your doubts.

If buying a car is your priority, let Car Destination help you in fulfilling it. Get low rate bad credit auto financing with instant approval. Don’t worry if you have no money to make a down payment. Bad credit no money down car financing program is available for you.

All the best for your loan! Hope you get instant approval!

Factors that determine Instant Bad Credit Auto Loan Approval

“I want to buy a car quickly but have no money saved up for down payment. Oh! And I have bad credit as well.” - Jesse, Everett WA

“I desperately want to buy an automobile. My car spends most of its time at the mechanic. Can you help me get a car with bad credit? I need it quickly. Also, I don’t have the cash for down payment.” - Adam, Bronx NY

“My daughter is looking for a car loan. She has bad credit because she was unable to pay student loans. But, that is in the past. She got a good job and paid off all her loans. Plus, I can co-sign her loan. Can you help her quickly?”- Catherin, Texas

These are just a few people who are troubled by bad credit history. There are many Americans who are fighting bad credit every day. You can be like them and manage to get a car loan despite bad credit history. And, the good news is that you can get instant approval on your bad credit low rate car loan application. Don’t think this is a dream. It is a reality.

To get instant approval on bad credit auto loan program, you must concentrate on the factors that determine your approval. If you can strengthen the factors mentioned below, getting a car loan will be a piece of cake for you.

• Your Income

Your income helps the lender in determining your loan repayment ability. If you earn a good income, you can make easy payment.

It is okay if you are earning a part-time income. What matters is that you should earn gross monthly income of at least $1500.

• Your Job

A regular job is very important for a bad credit buyer. If you can make regular monthly payments in the present, the lender won’t be worried about your bad credit history. So, before applying for a car loan, make sure that you have a stable job.

• Down Payment Amount

Down payment is a crucial factor for getting instant approval. It lowers the loan amount and ensures the lender of your solid financial condition. So, even though it is not compulsory, it is advisable to make down payment. It is okay if you have trouble finding cash for making down payment. Here are ways in which you can make down payment without any savings:

1. You can sell your old car and use the money for making down payment.

2. You can trade-in your old car.

3. You can ask the dealer to use your incentives and rebates as the down payment amount.

4. You can even use the equity from your home or other property and get a loan for making down payment.

5. You can apply for a small personal loan as well.

• Co-Signer

If you can manage to find someone with a good credit score and lower debt-to-income ratio as your co-signer, the lender will have no problem in providing you with instant approval. You can ask your parents, partner, friends or children to become a co-signer.

So, if you can take care of these factors, you can get quick approval. Remember that bad credit is not a curse, it is an inconvenience. And, you can get rid of it with proper planning and patience.

All the best for instant approval on bad credit auto loans!