Category Archives: Credit & Auto Loans

Saving Money With An Online Vehicle Loan

As we all know, the digital age has changed so many things for the better. You shop and compare prices for everything else online, so why not auto loans? If you’ve found it difficult to get a vehicle loan in your local market, try searching online where you can find several lenders willing to offer you a vehicle loan at an extremely affordable price. Online financing is now an accepted and safe practice that has changed the car-buying experience. You do not have to leave home to apply for auto loan financing via the web, however, you do need to look for a reputable lender or a site that provides multiple quotes before you apply for financing.

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What information do I need to apply for an auto loan online?

When you apply for an online vehicle financing loan, you will be required to provide limited details about the type of car you wish to purchase, as well as details of your personal financial situation. You do not have to have perfect credit to apply. Some sites only deal with poor credit individuals while others provide multiple offers for individuals across the full credit spectrum (poor to great credit). myAutoloan.com is one such company that has multiple lenders. They also provide multiple direct loan offers for you to compare. When shopping for financing online, look for tools and calculators on rates and monthly payments as well. Now that is the best of all financing options!

But my credit isn’t the best…

What if you have had some credit issues in the past? Not to worry because you will still be able to get multiple offers when you use a multi-lender website. As we all know, APRs vary from low rates for excellent credit, to higher rates for those who have had difficulties in the past. The best thing to do is to get multiple offers so that you can compare and select the rate and terms that work best for you.

Even with a less than perfect credit score, you should find a lender who specializes in vehicle loans for individuals who have had some bad luck in the past. There might also be a financing guide for you to review that can give you some ideas for obtaining the best car price and best loan offer after reviewing the information. If you work with a multi-lender platform website, you can get up to four quotes for you to review and select from. Based on your credit history, these specialized lenders will work with you to offer you the best rates they can.

What is the online auto loan application process like?

The process is pretty simple: Fill out the application with a few details, request a loan amount that you need for the purchase of your new or used car, and submit. You can get offers right away in some cases or in an hour at most. The good thing is that you can get more than one offer that allows you to compare and select. Choice is a pretty powerful thing – at myAutoloan.com, you get to select.

I’m ready to take control and make my choice!

If you take time to compare and use the various tools that are on the site, you can get a good handle on how to be in control when you go to the dealer. What’s also nice is that you can consider an auto refinance loan after about 6 months of on-time payments. This could help reduce your rate and payment. If you are able to make on-time car payments to the lender, it is very possible for you to save on the overall cost of your loan.

So, do what thousands of others are doing these days. Shop for online vehicle financing and see for yourself how quick and safe this process is and save some money on top of it all. Good luck and good loan hunting.

How to Get a Car Loan with Little to No Credit

Looking to get a car loan with little credit? Maybe get a car loan with no credit? You’re not alone. Research by the Consumer Financial Protection Bureau found that 26 million American adults have no histories with national credit reporting agencies. An additional 19 million have credit reports that are so limited or out of date that they are unscorable. If you’re one of these Americans, you don’t have to be stuck riding the bus or bumming rides from friends. With the right information and a little hard work, you can get behind the wheel of a new or used car in no time. Just follow these 7 steps to get a car loan with little to no credit!

7 Steps for Getting a Car Loan with Little Credit

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1. Check your credit report. It may include inaccurate information that’s unfairly impacting your credit score, an issue that’s relatively common. In 2016, more than 43,000 complaints posted to the Consumer Financial Protection Bureau’s website were complaints about credit reporting. A whopping 74% of these complaints were about the credit reports including incorrect information, notes MarketWatch.

You’re allowed one free copy of your credit report from each of the credit reporting bureaus (Equifax, Experian, and TransUnion) each year. Before trying to get a car loan with little to no credit, check your report for errors. Then, dispute any errors with the credit bureau who distributed the report. Once any errors are corrected, you may find that your credit score improves. Even if there aren’t any errors that need resolving, it’s still a good idea to see exactly where you stand before applying for an auto loan. Check your credit scores from all three bureaus at FreeScore360.com.

2. Open a checking or savings account. You may already have a bank account in your name, but if not, this is the perfect time to open one. (And it can help you with the next step!). A bank account can act as financial proof that you can afford your car loan payments. While it’s not technically required in order to be approved for financing, it could improve your chances with lenders. Opening and maintaining a savings account can also help you establish healthy saving habits and get closer to your dream of buying that new car— one dollar at a time!

3. Save for a big down payment. The bigger your down payment, the less you’ll need to borrow. It’ll make a car loan easier to get with no credit and you’ll end up paying less for the car in the long run. How much should you put down? An Edmunds analysis of new- and used- car purchases in 2017 showed that the average car down payment was about 12%, however, conventional wisdom says that you should shoot for 20%. As someone who’s looking to get a car loan with little to no credit, you’ll want to lean toward a down payment that’s closer to 20%.

“Making a bigger down payment could increase the chances of being approved for a loan,” advises Edmunds. “Banks and finance companies want to lower their risk of not being paid, so they prefer loans of smaller amounts. The more you put down, the greater your chances will be of being approved.”

What about those catchy “zero down/zero APR” advertisements? Forget about them, for now at least. As few as 10% of shoppers actually qualify for them, says Edmunds, and your credit typically has to be in “great shape.”

4. Get a co-signer with better, more established credit. In the eyes of a lender, a co-signer reduces risk. If you aren’t able to make your loan payments for any reason, the cosigner is expected to do so. Co-signers are additional assurance that the loan will be repaid. A co-signer can be a friend, spouse, parent, or other family member. Lenders can’t require that you have a co-signer if you’re trying to get a car loan with little to no credit, but they may not offer you the loan based on your financial situation alone. A co-signer can make it possible for you to get financing approval or a better interest rate.

5. Compare financing options. Shop around! As much as you want to get behind the wheel of a new car as soon as possible, patience can pay off. Your first option might not be your best financing option, especially when you’re trying to get a car loan with minimal credit. Different lenders offer different loan terms and interest rates. Even loans with the same interest rate will yield different payment amounts depending on the length of the loan, so make sure you’re comparing “apples to apples” before committing to one auto loan.

6. Build your credit. Ideally, you’ll work to build and improve your credit so that you’re eligible for the loan amount, interest rate, and loan terms you really want. This process can involve getting a credit card, paying bills on time, and staying within your credit limit—all habits that can take months to establish. For many people, though, waiting to buy a car until you have perfect credit isn’t realistic. Life doesn’t stop. The kids still need to get to school. You need to get to work. Thankfully, making car payments on time is a great way to build your credit (and keep your means of transportation).

7. Apply for a car loan! Whether you’re working on saving up for a big down payment or searching for a co-signer, you’ve got to start somewhere. At myAutoLoan, we work to meet your needs as quickly as possible. We welcome all drivers to apply to get a car loan, even drivers with little to no credit. Use our application and you’ll save time and money, since we only present you with offers that match your situation. Submit your auto loan application today and compare up to four offers in minutes! (Remember step #5?!)

 

How Your Credit Score Could Affect a Car Loan

Is there a connection between your credit score and your ability to get a car loan? What if you’re trying to buy a car even though your credit is less than perfect? Here’s what you need to know about credit scores and car loans.

What do I need to know about credit scores?

First, the basics about credit scores. Your credit score is a 3-digit number that will fall between 300 and 850, with 850 being a perfect score. This number is calculated based on your financial history, which is comprised of factors like your ratio of debt to available credit; the length of your managed credit history; the number of credit types you’ve managed; your recent credit inquiries; and your bill payment history. You can get your credit score for free by contacting one of the 3 major credit bureaus—Equifax, Experian, and TransUnion.

For a more detailed breakdown of credit scoring, see our articles about Understanding Credit Scoring and Tips for Improving Your Credit.

How are credit scores and car loans connected?

Your credit score helps lenders determine whether it may be a risk for them to lend to you. A higher credit score indicates better reliability, since lenders are considering your past financial activity to be indicative of your future activity. As such, a lower credit score may mean you’ll be charged a higher interest rate for your car loan (we’re talking up to 20%). Does that mean there is a minimum credit score to get a car loan? Not necessarily. It will vary from lender to lender.

Can I still get a car loan with bad credit?

It’s certainly possible to figure out how to get a car loan if you have bad credit—you just need to go about it the right way. One of the best things you can do is partner with a specialized lender that is willing to work with customers who have bad credit. To find one, start with a bad credit auto loan direct lender like myAutoloan.com. This will allow you shop around and get multiple offers to find the right lender for your situation.

Want a full breakdown? Read our 5 Steps to Find a Car Loan with Bad Credit.

Interest Rates and Your Credit Profile

Interest Rate Estimator

What Your Interest Rate?

FAQ’s on Interest Rates
The most often asked question we hear from our customers applying for an auto loan or refinance auto loan is, “If I apply what interest rate will I be approved for?” Interesting question with so many answers. First, you have to actually apply before we or any lender would really know. No reputable lender can answer that question without you actually applying and pulling your credit report and credit score.

At myAutoloan.com we’ve built a tool to help answer this question. Our Interest Rate Estimator tool calculates probable auto loan interest rate outcomes based on four quick questions. This tool returns a range of interest rates from Lowest APR to Highest APR along with the Average APR for your credit type all based on recent data. With this Interest Rate Estimator tool you will have a good understanding of where you stand with us and the many lenders represented on our marketplace lending platform. Additionally we publish our Today’s Lowest Rates chart that provides you with the lowest possible interest rates segmented by loan type and by loan term that you can obtain when applying at myAutoloan.com.

Second most often asked question is, “I know my credit score, what will my interest rate be if I apply?” Credit score also known as FICO score is not indicative or directly related an interest rate. Most lenders today utilize custom score cards, meaning they analyze your application attributes along with your credit report and historical customer behavior data to calculate their own score. This custom score is directly related to the interest rate, loan term and conditions a lender may use to decision your loan. Once again our Interest Rate Estimator takes a similar approach and provides you with a range of possible interest rate outcomes.

We hope you find this information helpful. Remember you can apply online at myAutoloan.com at any time online 24/7.