51 No Credit Check Auto Loan Lenders
Just
because a lender is offering ‘no credit check’ auto loans does not mean that
he is your new best friend. In fact, be wary of such lenders, they may be
trying to reel you in with the convenience of ‘no credit checks’ but then
offer you high rates. So the same rules apply – shop around! In the end it
all boils down to which lender can provide the best interest rate for the
car you like despite you having poor credit, bad credit or no credit
history.
No. 52 Pre Approved Auto Loan - Gaining Leverage
Whether you do this online or via a bank, getting a pre approved auto loan
works to your advantage. For yourself, this ensures that you are ready with
the information required for the loan. And when you speak to a lender or
loan officer, the fact that you have a pre-approved loan shows that you are
well-informed. For a car dealer, this indicates that you cannot be easily
scammed; for a loan officer this is seen as a sign of responsibility and
will influence your car loan favorably.
No. 53 Pre Approved Auto Loan - Online
Approvals
Getting a pre approved auto loan has great advantages. However, if you plan
to do this via an online auto loan lender, proceed with caution. If you are
providing personal information, ensure that you are providing them in a
secure site. You don’t want to get tons of junk email right? Sometimes,
these online lenders are just ‘fronts’ and are just after your email address
so they can bombard you with offers and what nots.
No. 54 Beware the Balloon Auto Loan
A
balloon auto loan is where you only pay the interest of the car loan monthly
(i.e., and not the principal amount). At the end of a pre-agreed schedule
(e.g., every six months or annually), you then pay a huge lump sum. Many
lenders try to sweet talk you by touting the benefits of ‘lower monthly
payments’ and then conveniently forgetting that a balloon payment can be
difficult. If you opt for a balloon auto loan, ensure that you will have the
funds by the due date the lump sum payment is required.
No. 55 When to Agree to a Balloon Auto Loan
A
balloon auto loan is where you only pay the interest of the car loan monthly
(i.e., and not the principal amount). The main advantage is that you get to
settle very low monthly car loan payments. If you can guarantee yourself
that you can save up the lump sum required during the months you are paying
only the interest, then go for such a loan. This is also an option if you
can pre-determine a certain amount of money to be yours (e.g., freedom from
other loans, a salary bonus, etc.) at the time the balloon payment is
required.
No. 56 Auto Loan Down Payments
One
major variable that you can control when getting an auto loan is the amount
of down payment you can make. Making a large down payment will undoubtedly
lower the cost of your monthly payments. And so if you are planning ahead
and want to get a car at some point in the near future, start saving now for
the down payment. Rebates offered by lenders and car dealers are another
factor in the overall cost of the car that you should consider.
No. 57 Auto Loan Rebates
When
getting an auto loan, car dealers will try to throw in great rebates. Now,
these rebates may sound great but they can actually ‘artificially’ increase
the popularity and value of a car and can make the car cost more. And then
after a couple of years, when the popularity of the car dies down it will be
hard to sell the car for a good price. There are no shortcuts – the best way
to know what interest you're paying is still through the annual percentage
rate (APR).
No. 58 What is an Auto Title Loan?
An auto title loan is
a loan wherein you provide the title to your car as collateral or security
for a loan you wish to take. The main advantage is that you get cash fast;
the main disadvantage is that you can really lose you car if you do not pay
the loan on the assigned due date. So before you hand over the rights to
your car to a lender, ensure that you will have the means to pay off the
loan when it is due.
No. 59 Auto Loan Hidden Charges and Penalties
It is very important to
know and understand the basics of financing and to ask the dealer or the
bank as many questions as you can about your auto loan. You should also
check to see if there are any penalties if you pay a loan early or if there
is anything else that you might be charged for during the term of the loan.
Any hidden charges on your car loan are considered as penalties.
No. 60 Get a Better Auto Loan Deal with Trade-Ins
One
of factors affecting an auto loan is if you have a car to trade-in. The
trade-in value of a car is part and parcel of the dealing process of buying
a car. One important tip – do NOT talk about the trade-in price of the car
until you have agreed on the price for the new car. The market is what sets
the value of your car whether the car is a trade-in or a sale that is made
privately. You should always use the trade-in to its maximum value.
No. 61 Auto Loan Deals - It's Bargain Time!
The amount you need for
an auto loan is directly proportional the price of the car you want to buy.
So... bargain hard! Bargaining with a car dealer can bring down the sticker
price of a car. Not everyone pays for the sticker price of a car because
dealers are always willing to bargain between 10% and 20% of their profit
margin. This percentage is usually the difference between the suggested
retail price and the invoice price. Either way, both the dealer and the
buyer get a good deal.
No. 62 Auto Loan Deals - Break Down those Bewildering Numbers
Don’t ever agree to an auto loan or financing arrangement where you are only
shown the total or a rough idea of how you ended up paying that way. Knowing
the exact price of a car is important since you usually can't return a car
once you buy it. Always know the exact price as well as the total amount
that is being financed as well as the credit finance charge and annual
percentage rate of the car. Knowing the total number of payments you have to
make on the car is also very important.
No. 63 Do You Need Credit Insurance for an Auto
Loan?
A credit insurance is not
required by federal law so check your state's requirements if your lender is
offering it (or even mentioning that you NEED one before you get a loan). This can be done through the office of your attorney general
or insurance commissioner. Make sure to make a comparison and find out
exactly what credit insurance will cost if you already have an insurance
policy that covers the same thing. Also make sure it's included in the cost
of your credit and see where it is reflected in the APR you're paying if you
really need to get credit insurance.
No. 64 Thinking of Auto Loans After Bankruptcy?
If you've just been
discharged from your obligations due to bankruptcy, there are still many
lenders out there who are more than willing to offer auto loans after
bankruptcy. However, you still need to ensure that you are now of good
standing before any lender grants you a car loan. For one, you're credit
rate should at least be 525. Also, note that a discharged bankruptcy stays
in your credit report for up to 10 years so don’t even think of hiding this
fact to a lender.
No. 65 Auto Loans After Bankruptcy - Be True To Your Lender
Do
you have a bankruptcy discharge in your past? Don’t fret; there are still
many lenders out there who are more than willing to offer auto loans after
bankruptcy. But be honest about any
other new loans you have just availed of after the discharged bankruptcy.
For yourself, be aware of these loans and make sure you do not fall into the
same trap of not being able to pay your loans because you cannot file for
bankruptcy again for at least six years (which is why lenders are eager to
give you a loan again).
No. 66 Auto Loans After Bankruptcy - Are YOU Ready?
There are many lenders out there who are more than willing to offer people
auto loans after bankruptcy. But are you really ready for a car loan now?
Here’s how to know - when the car loan
is calculated, the payments cannot be over 20% your of monthly income.
Another ‘rule’ is that the overall car financing amount cannot be over 8
times your monthly income. If you cannot meet these parameters then you may
not be ready for an auto loan just yet.
No. 67 Auto Loan Calculator - Why Use It
An auto loan calculator
is a very handy tool to use because it helps you figure out instantly if you
can afford to purchase the car of your choice. You don’t need to buy these
handy calculators, just go online. Many lenders have this feature on their
sites. If you find out that you cannot afford the car you like, then you can
go and shop for another vehicle before you go to your bank or lender for
financing assistance.
No. 68 Auto Loan Calculator
- Find Out How Much You Need to Pay
Monthly
There are many types of
an online auto loan calculator but the most popular is the one that computes
for your monthly payments. Make sure you have the following information:
-
vehicle
loan amount (i.e., the amount of money you
wish to borrow from a
lender to
finance your
car)
-
car
loan term (duration of the loan)
-
interest rate
-
car
loan start date
Type in the above
information in the corresponding fields in the
calculator and then click Calculate. So, can
you afford these monthly auto loan payments?
No. 69 Auto Loan Calculator - Ease Anxieties Away
Admit it or not, most
people are not really fully aware of their own money matters and this makes
them quite apprehensive about approaching other people to ask information
about a car loan. With an online auto loan calculator, you can find out the
basic information required and that can start you off in your loan
information gathering mode. Once you have the data and the result of your
calculations, you can now face a lender or loan officer with more
confidence.
No. 70 Common Auto Loan Calculator Terms
Using an online auto
loan calculator is great but you won’t get anywhere without knowing these
loan terms (the values of which are the data you need for the loan
calculation).
-
APR –
Annual Percentage
Rate; the yearly cost of your
car
loan, including interest, insurance, and the origination fee.
-
down payment –
cash you have in
hand to serve as an up front payment for the
vehicle. The amount will be deducted from the vehicle
car price thereby reducing the amount of the
auto
loan.
-
interest
rate -
the fee charged by the lender
financing your
loan for the use of his/her money, usually expressed as an annual
percentage of the principal amount
No. 71 Pre Approved Auto Loan - Understanding Debt-to-Income
Ratio
If you want to get pre
approved for an auto loan, it is important to note that most lenders will
compute your debt-to-income ratio to find out if you are capable of settling
your loan. Not sure what your debt-to-income ratio is? Add your total net
monthly income and then add your monthly debt obligations (e.g., credit card
bills, other loan payments, etc.). Divide your total monthly debt
obligations by your total monthly income. This is your total debt-to-income
ratio.
No. 72 Pre Approved Auto Loan - Is Your Debt-to-Income
Ratio Cause for Concern?
If you want to get pre
approved for an auto loan, it is important to note that most lenders will
compute your debt-to-income ratio to find out if you are a high or low risk.
Divide your total monthly debt obligations by your total monthly income to
get your total debt-to-income ratio. A 0.36 score should cause some concern.
The lower your score is the better; scores above 0.36 may cause an increase
in the interest rate or the down payment on the car loan you are applying
for.
No. 73 Auto Loans - In The Broker We Trust
You
can search online all you want and calculate for auto loans many times over,
but sometimes you really just have to talk to somebody who knows better. A
car
loan
broker is knowledgeable about the services,
programs, and rates of
lenders across the country. As such, he is a
great resource if you can’t make heads or tails of all the fancy
loan financing terms and marketing schemes of
lenders. So go ahead, give a loan broker a
call. It may cost a bit but it will be worth getting all your questions
answered.
No. 74 Auto Loans - In The Broker We Trust II
By
now, you know that the auto loans broker is a wealth of car lending
knowledge. More than this, a
broker works according to your specific needs.
He can analyze your financial situation, review your credit history and
provide advice on areas you may need to work on to get that
loan. So really, a broker does not only provide
useful loan information but he can lead you in the right direction to get
the best loan deals.
No. 75 Auto Loans - In The Broker We Trust III
Take
advantage of your auto loans broker. A broker has a wide network of contacts
so he can easily point you out to the lender with the most favorable loan
options that suit your needs. But do proceed with caution – ask him WHY he
is recommending this or that lender and why exactly are those loan terms
attractive. Sometimes, a broker recommends lenders where he gets a
commission regardless of whether the lender is really good or not.
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