Are No Co-Signer Auto Loans Possible For Everyone?

When you can't get an auto loan easily and have been troubled by rejection, co-signer becomes your answer. A co-signer is a back-up for somebody who's doesn't qualify for an auto loan. From the car loan borrower's perspective, co-signing is a great way of securing auto financing options. Co-signer vouches for you when the lender has doubts about you.

Getting a Co-Signer Is Finding a Needle in the Hay-Stack

A co-signer is great for someone with credit problems like bad credit scores, no credit history, etc. As a co-signer will infuse trust in the lender, your weakness will be over-shadowed. But, is finding a co-signer easy? The answer is a big NO. From the perspective of a co-signer, you are a risky proposition. If you don't make the payments, his credit score will have to take the dent.

Also, his assets would be in danger. In this economy, when everyone's credit score has taken a hit, no one wants to assume the risk of someone else. Also, for ` co-signer, you need someone with a decent credit score and a good debt-to-income ratio. These criteria make the search all the more difficult.

No Co-Signer, No Car Loans?

Think all these problems hampering your car dream? Well, auto loans without co-signer are your answer. Most car buyers consider no co-signer car loans to be a privilege and reserved for the excellent credit score. But, the reality is not so. You can get a no co-signer loan even when you are surrounded by credit crises. For understanding the situations in which you can get an auto loan without co-signer, you must understand the loan approval criteria.

Most auto loan borrowers commit the fatal mistake of considering credit score as the single most important factor for getting no co-signer loans. But, there are many other factors which affect your approval chances:

Credit Score - Higher score improves approval chances.
Credit Profile - A longer term gives lender a good chance to ascertain the risk.
Term of Loan - A shorter term means less risk and thus, lower interest rates.
Loan to Value Ratio - Lesser the ratio, better the chances of approval.
Down Payment - 10%- 20% will work.
Employment Term - You need to be working for at least six months.
Income - A decent income is a necessity. $1500 per month is a must for most lenders.
Time at Residence - Half year criteria applies here as well.
Age of Vehicle - If you are buying a used car, it shouldn't be older than six years.
Miles on Vehicle - Most lenders won't finance a car which is older than 80,000 miles.

Can Bad Credit Shatter My Car Dream?

All these requirements decide your loan approval, not one. So, when you have a bad credit score and want to avail car loans without co-signer, other factors should be strong. If you have good income or have a stable job, approval would be easy for you. If you decide to buy a less expensive car, approval would not be difficult.

When You Have a No Credit History

You have no credit score when you have never availed credit or are new on the credit scene. This makes your credit profile non-existent. When you have a zero credit history, lenders are not able to ascertain the risk associated with you. You must give them a reason to trust you. You can do so by increasing your down payment amount, going for a cheap car, opting for a shorter loan term, etc. If you improve on other approval criteria, getting a no credit no co-signer auto loan will be possible for you.

Student Auto Loans without Co-Signer

When you are a student, a car is a requirement and searching for a co-signer is quite a trouble. For getting a car loan with no co-signer, you must have a job that pays you well. Also, a down payment would help you. Get better on other factors so that your loan application will be accepted even if you have a no credit score.

First Time Car Buyer's Tryst with No Co-Signer Vehicle Loans

When you are buying a car for the first time, you can avail a car loan without co-signer. All you need to ensure is spice up other requirements. If you have a good paying job and have been regularly paying your utility bills, then the lender can establish you as someone who is regular in paying-off liabilities. This will increase your chances of getting no co-signer auto financing.

A no co-signer auto loan is great for almost all types of credit problems and situations. Getting it is easy when you know how to tackle the approval criteria.

So, next time you think of auto loans without co-signer, highlight your strong points to the lenders.

Remember that car loans are easy when you have the will to achieve it.


Article Source: Rock Watson

There Is No Need to Give Up Hope Of Driving A New Car Again If You Have A Poor Credit History

We are living in a very fast paced world and it has become very important to get used to it. Every luxury has been provided in an easy way to people. There comes a time when a person would over use those facilities and they would then have to suffer the consequences. A very useful facility that we have all been accustomed to using regularly is the service offered by banks. Banks nowadays deal with almost everything whether it is car financing, house loans, agriculture loans etc. It is for your own good if you stay in the good books of your bank because if not, you might have to face serious consequences such as a poor credit history. You may not be able to obtain loans from other banks also because the user data is available to every bank. In most bad credit cases these were the result of a default on car financing which has lead to a new industry of bad credit car leasing and bad credit car loans.

It was a source of worry in the past if you had a bad credit car loan history because you might have to give up the hope of driving a new car and adjusting to life driving older cars. It meant that because of the financial crises and other problems that people in this situation could never drive a new car again. Nowadays, many companies have emerged that came up with an alternative solution for the people who have a bad credit history. They came up with a way, which will benefit everyone, even the banks. Those with a bad credit history will be offered a loan at a higher interest rate than conventional borrowers.

Some companies who offer these services act as a middleman for those with a poor credit history. The companies will buy the car for them but will register it in the company's name. It also provides a safe situation for them as well because whenever these people fail to provide the lease amount to the bank, the company will confiscate the car from them. These companies can be found on the internet but you have to make sure they are genuine and honest because a number of fraudsters have also been using this technique to offer this service and instead of you getting the car they end up vanishing after the down payment has been made. It is advisable to consult with people who have been already used thee services in the market so that you do not become the victim of this fraud.

These finance companies have acted pretty well and have gained a lot of respect from their customers. It is advisable in the first place to keep a clean record of your bank statement but if for some reason you have not been able to do that and want to get a new car, these finance companies will come in handy.


Article Source: Saleem Gilani

Guide and Facts on Getting a Bad Credit Car Loan

A car loan is often hard to get for people with bad credit. Majority of traditional lenders consider credit score and rating as their primary evaluation criteria. For people with bad record on car loans, loan approval often becomes challenging. Fortunately, there are now lenders accommodating individuals with poor credit history. New lenders now provide bad credit auto loans to give other people the chance to afford a car. If you are considering getting a bad credit car loan, there are several things you have to keep in mind.

Overview

Typically, not good credit loans offer higher interest rates. Because people can apply for it easier compared to traditional loans, the costs can be higher. This type of loan has fewer conditions compared to loans only accepting good credit score and ratings. Re-payment conditions are also different.

Most bad credit auto loans do not allow early payment or other interest hikes in case you are late with payment. For people still recovering from their finances, this may be the best loan option.

Deb Consolidation

If you still have other debts and need to compensate for a car payment, get a bad credit car loan. This makes it easier to track of all your payments. Most of the time, dire credit auto loan providers allow you to pay off different types of debts with one big payment. This means you only have to track one monthly due. You can significantly ease stress if you pay a single loan compared to smaller multiple debts.

Credit Score Improvement

When you have a bad credit car loan, you also have the chance to improve your credit score. Credit score improvement and debt consolidation go together. Most of the time, when you pay off your debts including a car loan using a bad credit grant, you can prevent late payments or missed monthly dues. When you maintain your payments with this type of loan, you can enhance your credit score.

Getting the Loan

Lenders of bad credit loans have different requirements, though, they will ask for collateral. Collateral includes home, car, jewelry and even important documents. If you want lower interest rates and faster loan transaction or approval, put in collateral. Likewise, the lender may need your bank account information including source of income. Most lenders of this loan will not ask for credit history but they need assurance you have a steady source of income to pay for monthly dues. Accomplish an application form; provide your personal information together with bank and employment information. Many lenders approve loans immediately as long as you provide complete information.

Looking for a Lender

There are many ways to find a lender. One of the best ways is through the internet. Most lenders are now online. You can find out about the loan and requirements quickly after checking out their page. You can also check client ratings and feedback through the internet. If you know people who have applied for loans, ask them for recommendations.


Article Source: hMark Spencer Allan

How Does a Novated Lease Help Me With Discounts and GST?

When the Howard Government introduced Goods and Services Tax back in 2000 Australians from Perth to Hobart and everywhere in between let out a collective groan. Nobody likes paying more for the same and equally nobody enjoys paying more tax. So what has this got to do with Novated Leasing? Simply put Novated Leasing is your shield to avoid any unnecessary GST payments on the purchase and maintenance of your new or second hand vehicle. The minimisation of GST is one of the most important elements of Novated Leasing and knowing how it operates can help you maximise your savings.

The vehicle purchase price

As well as saving with fleet discounts Novated Lease customers can also save GST on the purchase price of their vehicle. This saving is significant especially on new vehicles as the price always includes extras and additions.

Ordinary finance agreements do not cover this GST saving. Adding this GST saving to bulk and fleet related purchase discounts takes a lot of the sting out of new car prices.

Fuel purchases

Saving with discounts on fuel purchases is like the gift that keeps on giving. These savings can be made where your Novated Lease provider is also a Fleet Management provider. In these cases standing agreements with fuel providers can bring discounts on fuel prices so it's important to ask about this from the outset. Continually saving in this area can mean that fuel cost rises are less painful and fuel efficient vehicles are even more cost effective. In this sense diesel, petrol and LPG vehicles should see a real saving.

Servicing, parts and labour

Like purchase price GST can also be saved on servicing, parts and labour costs. This is again significant as it means that you pay less for these services than would otherwise be the case. While fuel and purchase price can see good discounts as a result of bulk buying these discounts are smaller in comparison to the discounts which can be achieved by a bulk buying fleet management company for servicing, parts and labour.

Final thoughts

Making savings in any area is highly satisfying. While this is true of almost all situations it is especially true for saving money on tax. Thinking ahead and planning with a Novated Lease means that you can avoid GST on a large range of transactions. Yes, Novated Lease holders need to be aware that they need to pay Fringe Benefit Tax (FBT) however this charge is not as significant as the savings which can be made. Discounts and GST free transactions work for everyone involved and they can make the difference between a little spare cash and a lot.


Article Source: Jack Haymaker

Use These Important Tips To Find A Good Car Lease When You Have A Bad Credit History

Leasing a car is often difficult for those who have a low credit score, especially because the traditional banking institutions and car financing companies do not like to take unnecessary chances with consumers who are deemed not credit worthy. Although these decisions may present major hurdles for the person that wants to lease a car, it does not have to stop them from getting the car lease that they need or want. Fortunately, there are other options for leasing a car with bad credit available. Before trying to lease a car, however, there are some of the things that all consumers should know. Some of these main things include limiting the amount of searches on the credit history, researching your non-status car leasing status options, and developing a plan of attack,

Limit Credit History Searches

One of the biggest mistakes any car buyer can make is to allow multiple finance representatives to run a credit check each time they go to a car lot. Unfortunately, many potential car buyers (especially the young) will allow the car salesperson to talk them into running a credit check even when it is not necessary. Many times a sales person is only trying to determine is if the consumer has the ability to buy a car. Therefore, it is important for the car buyer to know when and when not to allow the finance area to check their credit history. As a rule of thumb, the credit check should only be run when the buyer has picked out the car and they are ready buy. Otherwise, the salesperson should be instructed to wait until such time.

Research Non-status Car Leasing and Car Leasing Bad Credit Options

With this being said, the first step in the leasing process is to research available options. Finding the right options is essential to securing the lease. Therefore, when the person knows their credit is bad in advance, they can rule out the traditional banking and car financing agencies. After they have been eliminated, the buyer should make a list of the agencies that are well-known for lending money to consumers who have low credit scores. Some of these lenders are known as subprime auto lenders. These lenders are normally eager to loan the money to those who meet their qualifications. However, the buyer must beware of high interest rates and other tactics used to promote expensive car leases. For example, when an auto subprime lender is approving the loan amount, the buyer should always check the interest rate. With a bad credit rating, the interest rate is normally higher than the traditional banking institutions. Therefore, the person who is leasing the car will need to ensure the agency is not involved in predatory lending practices.

Develop a Plan of Attack

Another recommendation when choosing the best option is to develop a plan of attack. This plan of attack should include getting a pre-approval before approaching the salesman on the lot. The pre-approval will give the buyer the upper hand in choosing a car. For example, if they prefer taking over someone else's lease because it is a less expensive option, the buyer will have the right to choose.



Article Source: Jabir llah Niazi