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3 Tips for Getting A Bad Credit Used Car Loan

admin — Wed, 15 Oct 2008 16:23:07 +0000

If you want to get a bad credit used car loan you might be surprised to learn that getting one is just as easy as getting a used car loan with good credit. The reason that it is still easy to get used car loans with bad credit is that the loans are secured by collateral (the car) and so auto loan lenders have some protection. Of course there are cons to getting a bad credit used car loan and the primary one is the higher interest rates you’ll need to pay. If you’re looking for a way to get that loan without paying more, then read the following 3 tips to help you get a lower interest rate on your bad credit used car loan.

Find a Co-signer – While getting approved for a used car loan with bad credit isn’t difficult, it can be expensive. Auto lenders regularly offer loans to those with bad credit, however they also require higher interest rates than for loans to those with good credit. If you’ve had a recent bankruptcy or missed and late payments then chances are your credit score is quite low and there is small chance that you can get a low interest rate on a used car loan on your own.

Of course there’s a way around this and you can get low interest rates on a bad credit used car loan. The way you do this is by applying for the car loan with a co-signer who has good credit. This helps because co-signers are also considered responsible for paying the loan if the primary borrower is unable to make payments. This means the lenders will take the co-signers credit score into account when offering the loan and the rates will be much lower than you could get on your own.

Use a Down Payment – A second way to lower your interest rate when applying for a bad credit used car loan is to put some money down on the purchase. The amount is up to you, but to lower your rate you’ll need to put at least 10% down on the car. Depending on how poor your credit score is even this might not help, but it is worth a try. Plus you get the added bonus of lower monthly payments since you’ll be financing less.

Improve You Credit Score – I know it’s impossible to improve your credit score in a quick period of time, but you can make small gradual improvements each month. By paying your bills on time, paying more than the minimum on credit cards and cleaning up your credit report you can easily add 10-20 points or more to your credit score each month. If your credit score isn’t that bad to begin with you could actually be a good credit person in just a few months and qualify for the lower interest rates on your used car purchase.

If you’re looking to get a bad credit used car loan these three tips can help you lower your interest rates, lower your monthly payments and get your credit score moving higher as well. Don’t give up on your used car purchase, instead fight back and get your credit score back on track.

How to Get A Bad Credit Second Mortgage

admin — Tue, 14 Oct 2008 17:02:05 +0000

While it may be harder to get a bad credit second mortgage it’s not impossible. Don’t think you won’t get approved automatically. When determining whether or not to approve a second mortgage, lenders will look at a person’s credit history to determine how likely they are to be able to pay the loan back. If you have a low credit score it can come from a variety of things and lenders do understand this. They will look not just at the credit score, but will also look at the reasons that have contributed to your being deemed a bad credit risk. So if you have a bad credit score don’t give up, you may still be able to get approved for a bad credit second mortgage.

You may be wondering what a second mortgage is and why you might think about getting one yourself. Basically a second mortgage is a personal loan in which you use the equity in your home as collateral against the loan. While people with bad credit can have a very hard time getting an unsecured personal loan, it is much easier for them to get a second mortgage because the loan is secured by the value of their homes. Lenders feel much more comfortable knowing that they can get paid back even if the borrower defaults on the loan.

In addition to this, a bad credit second mortgage can actually improve your credit score as you continue to make on time payments. Second mortgages can be a great way to consolidate your debt into one lower monthly payment. Of course if you’re going to use the loan for another purpose you should make sure that the monthly payments fit into your budget before getting that second mortgage.

Before you consider taking a bad credit second mortgage loan you should make sure that you have sufficient equity in your home. While you may find the interest rate on the second mortgage to be higher than the interest rate on your primary mortgage it is still a good way to get cash for home improvements, education, starting a business or debt consolidation. To have the best chances of getting approved for a bad credit second mortgage it’s recommended that you take the time to request quotes from several lenders and if possible work with a mortgage broker.

Mortgage brokers work together with a variety of lenders to get you the best possible loan package, but take care that the broker has your best interests at heart as many of them work on commission and may persuade you to take a second mortgage that is better for their finances rather than yours. Overall though, mortgage brokers are often able to get better deals than the average person when shopping for a bad credit second mortgage.

Once you compare the rates of several lenders you should choose the best one or two to get an official quote. Don’t forget about your current mortgage holder as well. Often times a lender will offer favorable terms to a current customer who has a good repayment history even if they have bad credit.

5 Ways to Get Home Loans for People With Bad Credit

admin — Fri, 10 Oct 2008 16:56:07 +0000

Even though the credit market is currently in melt down mode it will come back as confidence is regained. In the past home loans for people with bad credit were pretty easy to come by, but no one is sure what the approval criteria will be in the coming months and years. There are still ways to improve your chances of getting a home loan with bad credit and here are 5.

1^st – Try to find a good deal on a house. If you can find a house that’s priced lower than the appraised value you might be able to get a mortgage easier on that property. The lender will view this as if you have additional down payment money since you will immediately have equity in the home when you purchase it. Don’t assume this will be the case and talk to your lender first if you find a deal like this to be sure it will help you qualify for a mortgage.

2^nd – This probably won’t work as well anymore, but you can try some creative financing options. Lenders have dozens of options when trying to get you a bad credit mortgage, see if they have one that might suit you. Talk with the real estate agent as well and see if the seller is willing to help with the down payment or is willing to carry a second short term mortgage.

3^rd – This is really a no brainer, but you should save more for a down payment. A larger down payment can be a huge help in getting home loans for people with bad credit. It will also help lower your interest rate and if you need to save for an additional 6-12 months you may even improve your credit score enough to get out of the bad credit/high risk category. If you have no down payment or even just 10% to put down it can make a lot of sense financially to keep saving until you can afford 20% at a minimum for the down payment.

4^th – Take some time and improve your credit score. This follows right along with the tip above, but there are ways other than time to improve your credit score. You should take the time to get a copy of your credit report from each of the three credit bureaus and go through them to make sure they are accurate. Many times people are hit with bad credit due to mistakes on their credit reports. Other ways to improve your credit score include making all your payments on time, closing unneeded credit card accounts and avoiding applying for any new loans in the 6 months leading up to your home purchase.

5^th – Take the time to shop around with different lenders offering home loans for people with bad credit. Some mortgage brokers will try to get you to believe that they are the only ones that can get a mortgage for you, but this is rarely if ever true. By simply talking to another mortgage broker you may find that not only can they help you, but they can actually lower your costs. Each mortgage broker has relationships with a variety of lenders and some are more flexible than others in their lending criteria. You should request quotes from a minimum of 3 lenders before making a decision. The good thing is that online mortgage lenders have made it easy to get quotes, even when looking for a bad credit home loan.

If you want to enjoy the benefits of being a home owner then don’t let your bad credit stop you. There are ways to improve your credit score to qualify for a home loan and there are even ways to get home loans for people with bad credit. Be persistent, shop around and keep working towards your goal of home ownership and you can find a way.