Though a car might not be much of necessity compared to basic life necessities such as shelter, food, and air it still holds a lot of advantages in some aspects of our life. One such aspect is convenience- the ease of operating on your own. The ability to move to whatever place you desire, not waiting for anyone to make a decision that has a parallel effect on your career. Let’s paint a vivid picture that should give you a clearer understanding of the breath of comfort a car brings into your life. You have so much to do at work with little time to accomplish them all, so you think of the only viable solution which is to stay a little late after the usual closing hour. Since working at home is out of the equation since there are no resources to accomplish that. But you can’t actualise this because your colleague that drop you some block before your house leaves work early. You’re left with no choice but to dance to the tune of your friend and leave your job on your desk untouched. These are one of the numerous advantages that having a car of your own brings to you, convenience. The right question is “what is the stumbling block holding you back holding you back from solving your car problem?” A bad credit.
At Car Loans of America we don’t think a bad credit should hold you back from enjoying basic life necessities such as owning a car in a city like Cleveland. We don’t want you seeing yourself as credit worthless because of your past. Past is history it shouldn’t be a compass that directs how you spend your entirety. We want to nudge you back to the track of financial independence and ensure you stay comfortable on that track. This article discusses the way we plan to actualise this for our client in Cleveland, Ohio.
What is a poor financial history?
A poor financial history is equivalent to having a bad credit which has been re-occurring for a long time. It is always challenging to meet up with financial responsibilities when there is bad credit. These financial responsibilities are minimal when compared to commitment such as purchasing a car or buying a house. But these are necessities of life that one needs to keep the ball rolling. The truth is there is a solution to every life problem. It only takes having access to the proper information at hand. One real answer to enjoying one of the basic necessity of life is having a car. There are several financial institutions in Cleveland, who offer car loan but the question remains “do they offer car loans for clients with bad credit without demanding too much?” The answer to this question lies in what a financial company like Car Loans of America brings to your table that dignifies them from other auto lenders. But first, let’s consider some primary financial records you should examine before making a financial commitment such as a car purchase:
- Check your credit history
Financial circumstances vary from one client to another which makes it is imperative to consider your financial history. This will give you an idea of whether you can handle a financial responsibility that comes with owning a car coupled with your expenses. From this consideration, you will have a better perspective of the type of car that fits your personality or your long-lived dream car. All this can only be brought to fruition when you keenly consider your credit history.
- Check your credit score and report
Several factors surface when reviewing a client for a car loan, but one element that is common to most auto lenders is having a good credit score. It easily opts your chances of getting qualified for a car loan. The credit score holds several advantages one of which is the parallel effect it has on the interest rate, which will be thoroughly discussed as this article unfolds. It is essential to check your credit report to ascertain the cause of your financial worries. Most of this issues can be attuned to human errors or inaccuracies on the part of the agency preparing the document.
How can I be sure of my budget?
Our online budget calculator has been an effective tool for most of our client to check for their budget. The budget calculator allows you to use parameters such as the interest rate, principal loan amount, down payment, monthly payment to gauge your affordability of a car. You can change all the settings that are susceptible to changes apart from the apr as situation changes. The monthly payment calculator is also available to gauge your affordability of the monthly payment using parameters such as the apr, principal loan amount, and the loan term.
What is the correlation between an apr and the loan term?
These two factors play a significant factor in the life of a loan whether it is a short-term loan or a long-term loan. A client who wants a car loan needs to understand the basis of this factor and how they operate in connection to a car loan.
The apr is the annual payment rate which determines the amount that will be paid on the principal loan amount and the monthly payment. The apr varies from one auto lender to another, and they consider your credit score before granting this loan. With a good credit score comes a reasonable apr which will help to make the monthly payment and the principal loan amount an easy task. This connotes that for you to have a reasonable apr, you must have a good credit score. With our team of professional lenders guiding you throughout the life of your loan, we believe you can revamp your credit history. By paying up all necessary payments which include the monthly payment and the principal loan amount you will be able to get a good credit score. Here are some standard credit score and the corresponding interesting rate.
- 850 – 740 : 3.2% interest rate
- 739 – 680 : 4.5% interest rate
- 680 and below: 6.5 – 12.9% interest rate
For clients with 780 credit score, their pre-qualification process is definite. With a credit score of 650 upward clients will get qualified but the might have to go through a high-interest rate.
The Loan Term
This is a representation of the life of the loan. You have the option of going for a small or an extended loan term, whichever works well with your financial situation. A client with a long-term loan will pay less monthly payment since the principal loan amount has been spanned across the life of the loan. A short loan term indicates that clients will have to pay more since they have little time to meet up with payment for the loan payment. If the apr is high, it implies that regardless of the loan term the monthly fee and the principal loan term will be somewhat high.
Bankruptcy Is No Stumbling Block
At one point or the other, we’ve all went through a severe financial downturn which almost looked like it’s never ending. We at Car Loans of America understand that circumstance unplanned for can pull someone into a situation beyond their control. Events such as a surgical operation, foreclosure, accident and loss of a loved one. One of this circumstance that financial company count as dominant is bankruptcy, but we beg to differ. We believe everyone can change and resuscitate to become once they can find the proper channel to achieve this. The only thing we advise client is to ensure they have a good source of income and to reduce the use of credit card for purchases.
Major Factors That Can Get You Qualified
There are three primary options offered by Car Loans of America that can help you get qualified for a loan. All these options are viable for our esteemed client, and they can help you get pre-approved for a car loan.
- Trade with your current car
You can trade with your current car which as your name on its auto title. It is essential that the client takes into cognisance the condition of the car. You also have to check the insurance of the car and make sure it is duly insured. A client who is trading with a car needs to be 18 and above.
- A reasonable down payment
A down payment proves your heightened level of seriousness in getting the car loan. This will make auto lenders more inclined to help you get qualified for the loan because of the show of dedication. This also holds a parallel effect on the monthly payment and the principal loan amount, which implies that it will reduce the monthly fee and the principal loan amount.
- A Cosigner
Having a cosigner will opt your chances of getting qualified for a loan. The cosigner is attesting to your genuine intent of paying up for the loan. The cosigner will be saddled with the responsibility of paying the monthly payment and the principal loan amount in cases where the client fails to pay up at the scheduled time of payment. Some finance company makes it a requirement for a client to get a cosigner before they can get qualified for a car loan. It is imperative that you should carefully consider whoever you choose to use as your cosigner. The consumer protection financial Bureau (cpfb) provides guidelines on the effect of a car loan on the client and their cosigner.
What to consider when shopping for your car?
With the aid of the online budget calculator, you will have a better perspective of what your finance can handle. At Car Loans of America we advise our client with bad credit to be flexible with their car selection decision. Having a bad credit might entail them picking a used car instead of a new one. This will help them to handle the maintenance and the insurance of the old car when compared to using a new car. We assure them of the best deals considering that we have the best auto dealers in the whole of Cleveland, Ohio. Over our years of operating as an auto lender in Cleveland, we have maintained a good relationship with our auto lenders all over the Cleveland, which gives us full assurance that you will be getting a good deal from them.
Look Around For A Finance Company
Most trusted auto lenders are those that deal directly with the consumer. They have a better overview of what the clients are going through. They offer listening ear and proffer solution to their financial problems. Examples of such are banks credit union, banks, a financial company. Car Loans of America holds a dignifying record of looking out for the interest of their client at every point of operation. We don’t just sugar coat our client by making a baseless promise of solving their car problem. We make it happen. Our track record speaks volume, and we have testaments from old clients to prove this assertion.
How to get registered on Car Loans of America?
Clients all over Cleveland can now easily register to get pre-qualified by using our online platform. We have made navigating on our webpage quite easy and fast. We have also made it user-friendly for every age group. Registering takes three necessary steps and can be achieved within a minute, by following these three essential steps:
- Sign up on the page and submit all the required details which include your name, contact information and the car of your choice
- Wait for a minute for a response, to get a document that contains the term of your loan
- Ensure you carefully read through the document to understand the terms guiding the loan
You will be required to take the documents with you to any of our auto leaders listed in the documents that are close to you. You’re expected to shop like you are a purchasing a car, and you’re not objected to discussing any financial cost with the auto dealer, take your car and ride like an equestrian.
There can be only one thing that can stop you from owning a car of your choice, and that is you not bad credit. Let us help you fulfil your long lost car dream.