Time is an essential tool for development in all spectra of one’s life. Failure to manage your time can cut short your chances of survival especially in a city like Columbia, SC. To avoid a situation such as this, you need to plan out your time carefully. You might need to expend some resource to get that time management tool, which is a car. With a car of your own, you can get just about anything done seamlessly in South Carolina. What about how you get to manage your time and staying productive in your daily activities.
Even in the face of bad credit, you can still own a car. Not just any car but your long-lived dream type of car. At Car Loans of America we help people actualize their dream of owning a car despite their financial setback or poor credit history. We have mended broken relationships, gave to the poor, and resuscitate the hope of those who have given up on life. Developing your secular career requires managing your time wisely. With a car, you can cut short waiting aimlessly at the train station or on a colleague that works on the fourth floor.
What is bad credit?
A bad credit shows the financial history of an individual. People with bad credit history are mirrored individual with poor financial judgment. These make most financial institution to be skeptical about granting them loans. Banks, for example, will never render financial aid to a client with a bad credit history. Does this imply that only those with a good credit score should have access to a car loan or any loan grant? It is essential to recognize that unforeseen circumstance beyond our control befalls all. Understanding this fact should change our outlook towards people with financial downturn due to bad credit. Whether it is a mortgage, foreclosure, poor financial history or bankruptcy you have found yourself on the right track to financial liberation.
Make Your Findings
It is advisable you make your research on the type of car that fits appropriately into your finance. Before making a substantial financial commitment such as the purchase of a car, it is imperative that you consider your monetary stance.
Check Your Credit Score
As much as credit score is not a determinant in securing an auto loan at Car Loans of America, we always advise our clients to check out their credit score still. For some financial institution, this is a criterion for getting qualified for a loan. They attach so much importance to the credit score and makes them lose track of the fact that a bad credit car loan is a form of financial aid, not a compulsive loan. There are cases of a human error on the part of the national agency that writes the credit report. It will be beneficial if you take out time to check and validate the authenticity of the statement issued. You can find the credit score right inside your credit report.
Factors That Determine My Credit History
Three primary factors determine credit history.
- The principal loan amount
- The available credit
- Meeting up with the loan term
To have a clean slate in your credit history, it is vital that you pay up your loan as at when due. These are little things a direct lender will pay attention to before granting you an auto loan. There are times when you may find it extremely difficult to meet up. It is better when you get them informed about your circumstance.
How to determine my budget?
The appropriate tool to determine your budget is the online budget calculator. It is imperative to have an estimate of how the loan will affect my expenses. The truth is obtaining a car loan shouldn’t stop you from performing your financial responsibilities. It is essential to check in with your monthly expense to gauge your readiness for the loan. With your principal loan amount, loan term, monthly payment and the APR you will be able to ascertain your affordability rate. The online budget calculator permits you to vary this value with the APR remaining constant. The monthly payment calculator uses the APR, the loan term, principal loan amount to know if you can meet up the loan amount.
Explanation of APR and loan term
The apr and the loan term plays a strong role in what happens to your loan. They serve as a crucial determinant of what happens during the life of the loan.
APR (annual payment rate)
The APR is a rate which determines the amount that will be paid over the life of a loan. The monthly payment, principal loan amount and the down payment all function with the trajectory of the apr. The credit score plays a huge role in determining what the apr will look like. Since the credit score is part of the criteria that gets you qualified for an auto loan, financial company use it as a metric in the apr rates. This signals that having a good credit score is pertinent to getting a reasonable rate. Auto lenders run a significant risk by giving out a car loan to clients without a good credit score. But with a good score they will be assured that you have managed your finances well in time past, and this will not be an exemption.
Here are some interest rate with their equivalent credit score
- 850 – 740: 3.2% auto loan rate
- 739 – 680: 4.5% auto loan rate
- 679 and below: 6.5 – 12.9% auto loan rate
To get the best apr while applying for a car loan you need to have a credit score of 740 upward. A credit score is above 650 also guarantees you a car loan but with a not so good interest rate. Anything below 620 will come with a high-interest rate which might make you falter in your monthly payment or principal loan amount. In the auto finance industry, this is referred to as a “subprime loan” which comes with a very high-interest rate.
It is essential that you do a few background check before making your interest known to a financial company about an auto loan. Check out your credit score online, see for yourself if you meet up with the setout standard before approaching an auto loan company or making your interest known. You will also save your time and energy into engaging in something that won’t come to fruition.
A longer loan term will give small monthly payment when the apr remains unchanged. Short loan term will bring big monthly payment with apr remaining unchanged. All these factors still linger on the apr, with a high-interest rate you might end up paying more on loan with a longer loan term. The interest still stands as the underlining factor when scouting for a finance company. Currently, we are witnessing an absolute increase in the loan term for the auto loan. For instance a new car as an average loan period of five years. Other types of car loans also run on average of five and a half years. Generally, most auto finance loans take within six to seven years loan period which makes it somewhat easy to meet up with. The interest rate on loan is still a downsizing effect on the amount paid despite having a more extended period to span the loan over.
Bad Credit No Credit Works Just Fine
In the wake of bad credit or no credit, there are still other viable options to get a car loan from Car Loans of America. We want to make getting qualified for auto loan something achievable. Two options will assist you in getting a car loan from our finance company.
- Make A Down Payment
A down payment shows your level of commitment towards getting a loan. Even with bad credit, having a reasonable down payment will help you get qualified. An auto lender will be able to gauge your level of seriousness by taking potent steps such as making a down payment. The down payment also has an underlining significant on your monthly fee and your principal loan amount. This implies that you will be paying less amount on your monthly payment and the principal loan amount.
- A Cosigner
The cosigner is the person who appends their signature with you during the auto loan grant. What this implies is that when you fail to make your payment such ones will shoulder the burden. They will be saddled with the responsibility of covering all payments that are involved in the car loan. For some auto lenders, this is a requirement to get an auto loan from their company. It is imperative to note that you should not be in haste to pick a cosigner. The Consumer Financial Protection Bureau provides necessary guidance on the effect of the car loan on you and your cosigner.
- Your Current Car
The last and the final option for obtaining a car loan is to use to trade with your current car for an auto loan. This process involves submitting necessary documents, such as auto title, driver’s license, insurance paper. Car Loans of America, is ensuring to meet your auto loan needs, please reach us halfway by providing an original document, please don’t submit a falsified report to any of our auto lenders in Columbia.
Does bankruptcy limit my chances?
We understand that we all sometimes make poor financial decisions. This decision sometimes bear bad fruit which can lead to bankruptcy, foreclosure and other forms of financial mayhem. But this should never deter should from owning a car. I mean having a car of your own should be a basic necessity. For cases of bankruptcy, you can check out other options made available for you. You can use your current car, make a reasonable down payment or possibly find a good cosigner. Utilizing any of these means will sit you comfortably on the top spot for our qualified clients.
Make Your Car Selection According To Your Finance
Our auto dealers in Columbia, SC have different brands of automobile that best suits your finance. It is best that you stay open minded as much as possible when making your car selection. Clients with bad credit might get a used car instead of a new car. The cost of insurance will be lower when compared to a new car. All we want to do is meet your auto loan needs and stay as flexible as possible.
Can banks assist my auto loan need?
You can get financial support from banks for car loans but not with bad credit. Banks are always on the lookout for potential clients only when they are not at risk in any way. They put up a front like they want to assist you with your auto loan needs but draws back when they garner knowledge about your credit history. They work better with a client who has proper credit. Banks staff won’t stick in their head for clients with bad credit. It means they don’t fall within the cadre of a financial company that assists a client with poor financial history.
Visit Our Webpage For Auto Loans
We made your online experience very efficient and timely. Car Loans of America webpage is easy to navigate, and you can get register for your loan within minutes of getting to the page. You can also get registered anywhere, whether at work, home I mean literarily any place any time. Things just got much engaging with the mobile version of our web page which makes getting registered more exciting and stress-free. Here are the three fundamental step.
- Submit your contact information and other necessary details as required on the page
- Wait for the preapproval message which comes in within minutes
- Download the document contained in the preapproval message.
The document contains the terms of the loan and the information of the auto dealers around your location in Columbia. You will be required to take this document along with you when going to your auto dealer.
Getting your auto loan needs solved is what we do best in Car Loans of America, and we walk with all credit profile. Seeing you cruise around the city of Columbia in your car is what makes us whole.