Straight Talk
Let’s face it, if you have bad credit, you are going to pay more for an auto loan than a person with good credit. That is just the way the system works. However, it does not mean that you have to settle for exorbitant rates offered by some companies. After all, you will have to repay the loan with interest regardless of your credit. So, don’t settle for being taken to the market because you may have had some financial problems in the past. Be smart, shop around.
The Best Way to Get The Best Loan Rate Is To Shop Around.
If you are ready to buy your next car, then comparison shopping will help you get a better deal. Be wary of ads claiming that bad credit is no obstacle to obtaining a car loan. Don’t accept the first offer you get just because they claim that bad credit is “NO PROBLEM”. These companies often charge exorbitant interest rates or require an advance fee to apply for a car loan, and you are often treated as a subprime customer.
Speaking of “subprime”, if you’re a borrower with poor or limited credit history, you’re probably aware that the only types of loans you may qualify for are referred to as “subprime”. One thing that you probably are not aware of is that you are not only paying a higher interest rate on your loan, but you’re probably receiving “subprime service as well. The sad fact is, nearly all lenders have “special” servicing departments that deal only with “subprime” borrowers.
Fortunately, one top online lender we researched, E-Loan, does NOT discriminate. E-Loan’s dedicated loan consultants service BOTH conventional and subprime customers, providing the same great service with great rates to all their customers.
E-Loan is radically pro-customer focused. Whether you’re a “prime” or “sub-prime” customer, E-Loan’s dedicated loan consultants, using state-of-the-art technology, offer personal consultative solutions for each type of borrower.
When shopping for a car loan, you deserve the same good service and rates as any other customer. Do not settle for less. Be smart, save money, and avoid the hassles and tricks played by some dealers and companies by using online companies like Capital One Auto Finance, E-LOAN, HHouseholdAuto, or RoadLoans.
Okay, so how do I get started?
To get started, you should contact several lenders, not just the ones that send you junk mail or those annoying telemarketers. You can talk with banks, savings and loans, credit unions, or mortgage companies, or you can shop around on the internet. When shopping for a bad or good credit car loan, ask all the lenders you interview to explain the loan plans they have for you.
If you don’t understand any loan terms and conditions, ask questions. They could mean higher costs. Knowing just the amount of the monthly payment or the interest rate is not enough. Pay close attention to fees, including: the application or loan processing fee, origination or underwriting fee, lender or funding fee, appraisal fee, document preparation and recording fees, and broker fees, which may be quoted as points, origination fees, or interest rate add-on. If points and other fees are added to your loan amount, you’ll pay more to finance them”.
Places To Get The Best Deals Online
We researched the internet for companies to affiliate ourselves with, and found several offering auto loans to people with bad credit. Some of the rates were decent, but the added fees were outrageous. There were application fees, lender fees, participation fees, points, cancellation fees, down payments, one-time fees for this, that, and the other. It was enough to make your head spin.
However, we have narrowed down our list to a few select companies that are willing to work with customers who have bad credit histories. These companies won’t feed you to death and offer some of the best rates we have seen thus far. Keep in mind, if you have bad credit, you’ll pay a little more, but ywon’tont have to lose your shirt in the process.
