- Click Here To Know More About:
- Collection Agency Failed To Validate Debt
By Robbie James
In order for just about anybody to get themselves behind the wheel of their own automobile today, they are going to have to choose auto financing to get them there. That is because most of us just do not have the money lying around required to buy even the least-expensive new cars on the market today. Auto loans have become a time-honored way for people to get the car they want now in exchange for paying more over time for their car in the form of interest.
The 4 Variables That Affect Your Auto Loan Payments
Of course, securing the right auto loan is all about negotiation, as there are multiple variables in play that affect how much you pay each month. The four main variables that affect your payments are: a. car price, b. loan terms (in months), c. interest rate, and d. amount offered as a down payment for the loan.
Happily, you have direct and immediate control over the first two items, but less control over the second two. Namely: you can always get a cheaper car and you can always opt for the longer repayment term – both of which will reduce your payments.
However, the interest rate is largely determined by your credit score. And, the amount you can offer for a down payment is greatly affected by your current cash flow situation.
How Having Bad Credit Affects The Equation?
Your credit score will be slightly different depending upon which of the Big 3 credit bureaus you check with. Still, your score will generally be classified into one of the following categories: poor, fair, good or excellent. If you have a poor or fair score (usually below 600), you will not qualify for the lowest interest rates. (Remember, lower rates can save you thousands in interest payments). Also, if you have a poor credit score, you may have more trouble qualifying for an auto loan in the first place.
What If You Have No Money To Put Down?
Most lenders like you to have some money to offer as a down payment for your loan. Doing so allows you to show that you have some “skin in the game” and are more likely to repay the loan. Having money to put down can also increase your chances of getting approved for an auto loan.
Finding 0% Down Auto Loans For Bad Credit Individuals
If you find yourself with a bad credit score and no money to put down for a loan, you want a lender that offers 0% down auto loans for bad credit borrowers. Here are the 5 steps to making it happen:
1. Know your credit score: You need to run your credit report with all of the Big 3 bureaus. You will do better in your negotiations if you know your score going into it.
2. Build a list of lenders who advertise themselves as “any credit” or “bad credit” lenders: Conduct some simple online research or check the yellow pages for auto loan lenders who advertise themselves this way. Why go to “regular” lenders when they won’t necessarily do the trick?
3. Compare advertised rates: Many lenders’ websites advertise their rates and specials on their websites. See what each has to offer before you make that first call.
4. Apply to the top 3 lenders: Now, it is time to apply to at least 3 lenders – preferably those about whom you have gathered the most promising information.
5. Be prepared to negotiate for what you want: During the application process, do not necessarily accept the first offer they extend to you. Remember: they are in the business of making money and they want your business. Ask if they can do better. And remember, do not take any offer until you’ve talked to all the lenders on your list.
Follow these 5 steps to making it happen and you will be behind the wheel of your car before you know it.
About the Author: Get a list of bad credit online lenders in your area at:
Bad Credit Auto Loans
.
Source:
isnare.com
Permanent Link:
isnare.com/?aid=557889&ca=Finances