Wednesday, December 16, 2015

S.M.A.R.T. Tips for Saving on your Auto Loan

Americans love cars. It is one of the reasons why America is amongst the world’s top car-owning countries. Every year, Americans spend several thousand dollars on auto loan payments. If you are looking forward to buying a car, make sure that you follow S.M.A.R.T. tips. The tips will help you save money and ensure that you do not opt for exorbitant auto loans.

Follow the S.M.A.R.T. Tips and Save Money

When car buyers have to make a decision about auto loans, logic takes a backseat and emotions become a controlling factor. It is the reason why car buyers say yes to financially harmful auto loans. To save yourself from the possibility of a financial damage, you must follow the tips.
S.M.A.R.T. Tips for Financing a Car

S - Specific


The car is a huge asset. So, it is essential that you understand your requirements before buying a car. It is important that you have a specific image of the type of the car that you want. It will help you stay away from an impulse purchase.  Consider the list of following factors because it will help you in choosing your perfect car:

1. Total number of passengers
2. Gearbox - Automatic or manual gearbox?
3. Cargo capacity
4. Vehicle performance
5. Driving conditions
6. Gas mileage
7. Safety features
8. Technological features
9. Parking space

M - Money


Remember that even if you opt for an auto loan, you will need to make down payment of at least 10 percent of the total price of the car. Making down payment is always beneficial for you because it helps in reducing the loan amount and the interest amount. Also, down payment will project your stable financial situation to the lender and help you in reducing the interest rate.

If you do not have money for making down payment, do not worry. You can trade-in your old car and ask the dealer to deduct its value from the price of the new car.


A - Affordable


Selecting a specific car will be of no use to you if you cannot afford to buy it. Remember that car expenses are not limited to down payment. You will have to pay money for monthly loan payments, fuel charges as well as maintenance 
expenses. A general rule is to allocate no more than 20 percent of your total monthly income for car-related expenses. Keep this rule in mind and choose an auto loan that does not exceed your budget.


R - Reliable


There was a time when car buyers applied for an auto loan with the local bank only. Today, there are several ways of obtaining an auto loan. You can apply with a bank, a credit union, or an online auto financing company.


No matter what option you choose, you must ensure that the lender is a reliable one. If you opt for an online auto financing company, check the website’s security certificate. If the website doesn’t have one, stay away from it and save yourself from a potential identity theft.


T - Time


Car buyers are afraid of rate shopping because they believe that multiple credit inquiries will damage their credit score. But, do not refrain from rate shopping instead, finish it within 30 days. Why?

A time-bound search for an auto loan will ensure that you do not harm your credit score. FICO does not consider inquiries made in the 30 days prior to scoring. So, if you are able to get a loan within 30 days, it won’t affect your score. This span of time can change to 14 days if the lender uses older versions of FICO and can increase to 45 days if the lender uses the newest formula.

Car buying is one of the most expensive purchases that Americans make. If you do not pay attention to your auto loan, you can make the worst financial mistake of your life. So, avoid making a bad decision and follow the S.M.A.R.T. tips.

Rapid Car Loans is the preferred choice of Washingtonian car buyers for obtaining no cosigner auto loans. Get in touch with the company and obtain Washington bad credit auto loans. Apply now to buy a car today.

Dealing with Auto Loan after Divorce

Divorce is not only emotionally difficult for you but it is also difficult for your financial condition. How?When a marriage ends, individuals split assets and go separate ways. But, what happens to liabilities such as an auto loan?

In an ideal world, both the individuals assume the responsibility of the debts they created and part ways. Unfortunately, the reality is different. So, take care of debts after a divorce.

The Legal Liability of an Auto Loan

Do not believe that just because the divorce agreement holds your former spouse responsible for the auto loan, he/she will make regular payments. It is plausible that he/she may not make payments.

You must remember that the divorce agreement is separate from your loan contract. Lenders do not give importance to the divorce agreement. Your former spouse may be responsible for the loan in the eyes of a court. But, if you applied for a joint auto loan, lenders will hold you accountable for the loan as well.

How to manage an Auto Loan after Divorce?

It is important to remember that your marriage may be history, but a loan will continue to affect your present and future. Here’s how you can manage your auto loan and save your credit score from plummeting.

1. Get rid of the Loan

After a divorce, the best way to manage an auto loan is to get rid of it. If your former spouse is responsible for making payments, the loan should be in his/her name only.

But, remember that no lender will remove your name from the loan contract because of your changed marital status. So, your former spouse will have to refinance auto loan and complete the loan process individually.

2. Get rid of the Car

If you are worried about refinancing the loan, you can sell the car and pay off the lender. It is possible that an upside down loan situation may force you to pay money to the lender, but it is important to understand that a loss today is better than constant tension forever.

3. Make sure the Lender gets paid

If your former spouse is responsible for the loan and both of you decide against selling the car, you will have to make sure that he/she makes the payments regularly.

If your former spouse doesn’t make payments, contact your attorney. It is possible that you will have to make a couple of payments to avoid any negative impact on your credit score. So, keep aside a part of your income for it.

Taking care of your auto loan might be the last thing on your mind. But, it is important to understand that your marriage is over and not your auto loan. If you don’t manage it effectively, you may ruin your credit score forever.

How to obtain the Best Black Friday Car Deal in 2015?

It is just a couple of days before the greatest sale of 2015 begins. This year, Black Friday is on 27th November. And, it is considered one of the best times of the year to buy a car. Here’s why?

Numbers prove it

Last year, 17.2 million cars were sold during November. The majority of the cars were sold during the long weekend of Thanksgiving. Experts believe that almost same number of people will be shopping for a new car this year as well.

Dealer’s Discount and Manufacturer’s Incentives

As the 2016 car models are available for sale, dealers will offer huge discounts on the 2015 car models. It is because they want to empty their inventory of 2015 car models.  Also, the manufacturers will provide incentives for buying this year’s car models. It means you can get the best of both worlds and enjoy buying a brand new car at reduced prices.

Why prepare for Black Friday Car Shopping?

It has become a tradition for many families to shop for cars during the long weekend of Thanksgiving. It gives them an opportunity to inspect the car at leisure without worrying about their job schedule. Several families will be present at the dealership lot when you go to buy a car. Everyone will be vying for the salesmen’s attention. In order to obtain the best Black Friday car deal, it is important that you go well prepared.

Tips for securing the Best Black Friday Car Deal

1. Create your Car Budget

If you are passionate about cars, your left-brain may influence your decisions. So, it is important to create a car budget by analyzing your current financial situation, credit score and future expenses. It will help you in calculating your expected monthly payments.

Once you have your car budget ready, search for car models within your budget. Make use of internet and read the reviews of the shortlisted car models.

2. Contact the Dealerships prior to your Visit

You won’t be the only one shopping for a car over the Thanksgiving weekend. Every dealership in your area will witness an astounding number of footfalls. In order to ensure a stress-free experience, call the dealerships beforehand.  There is no need of providing detailed information of trade-in or auto financing. Simply ask the dealers to e-mail you the vehicle quotes. It will help you in short-listing dealerships according to the price.

3. Don’t be Emotional

Black Friday car shopping is an emotional process. The salesmen may tempt you with exciting discounts and deals. But, you must stick to your car budget. It will help you in staying on top of monthly payments.

Also, it is essential to stay calm and composed during the negotiation process. Do not forget to check all the fees in detail. You can negotiate the fees charged by the dealer such as “dealer’s fee”, “dealer prep charges” and “marketing fee”.

Holidays make us emotional. But, it is important to have a practical approach to the entire Black Friday car shopping process. It is because only then you will be able to secure the best car deal.

Rapid Car Loans will help you take advantage of Black Friday car sale by providing instant credit approval on car loans. Apply now and get ready to benefit from the year’s biggest sale.

Wednesday, October 7, 2015

Auto Title Loan - Your Car is your Treasure-House

Are you in need of cash? Have you exhausted all your options but unable to find a solution to your cash problems? Even financially stable families may get caught in financial crises. Prolonged illness, loss of a job or any other unforeseen event may compel you to look for quick financing options.

If you are trying to obtain a short-term loan to end your financial crises, you may have heard of the following advertisements related to auto title loans:

1. Get Cash for your Car!

2. Get Quick Cash!

3. No Credit Check required!

Auto title loans are prevalent in several American states. It is popular among borrowers because the loan program is easy to obtain. You may have heard about it from your neighbors or friends. If you are interested in obtaining the loan program, you must only join the club after understanding it thoroughly.

What is an Auto Title Loan?

According to Investopedia, it is a short-term loan in which the borrower's car title is used as collateral.

To obtain the loan program, you will have to allow the lender to place a lien on your car title. Also, you will have to surrender the original title to the lender.

What is the Difference between an Auto Title Loan and an Auto Pawn Loan?

An auto title loan allows you to obtain cash and end your financial crises by pledging your car as collateral. The lender will require the title of your car and not take possession of your car. But, if you obtain an auto pawn loan from a lender, you will have to surrender your car along with the title of your car.

What are the Requirements for getting an Auto Title Loan?

If you want to obtain the loan program, you have to fulfill the following requirements:

1. You should be at least 18 years old.

2. You must have the original title of your car.

3. There should be no lien on the car.

4. The car should not be older than 15 years.

What Documents are required for getting an Auto Title Loan?

Following is the list of documents that are required for getting the loan program:

1. Identification Proof

2. Age Proof

3. Income Proof

4. Original Title of your Car indicating No Liens

5. Utility Bills

6. Vehicle Registration and Insurance

What is the Process of getting an Auto Title Loan?

Just like any other loan program, you have to submit an application form to the lender. The lender will consider your financial situation and analyze the worth of your car. Do not worry if you have bad credit history. If your car is valuable and you have a stable income source, the lender will approve your loan application.

Obtaining an auto title loan is simpler than you think! If you have ownership of a car, you can use it to get out of your financial troubles. Truly, your car is your treasure-house. Use it in times of distress.

How to calculate your Ideal Down Payment Amount?

If you make an impulsive decision of applying for an auto loan, you will end up damaging your credit score and your financial stability. Obtaining an auto loan is a process. You will have to research several financial alternatives available to you and devise a plan for making regular payments. Additionally, you will also have to make down payment.

Why make Down Payment?

The reasons for making down payment are as follows:

>> It reduces the total loan amount and lowers your loan burden;

>> It helps in improving your approval chances;

>> It manifests a stable financial situation to the lender; and

>> It helps bad credit borrowers in getting an auto loan.

What is the Ideal Down Payment Amount?

The more, the better!

When it comes to buying a car, it is better to make as much down payment as possible. But, it is not possible for everyone to make down payment of a substantial amount. So, here are a few factors that will help you decide the ideal amount for making down payment:

The Condition of your Credit

A credit report manifests your financial situation and credit worthiness to the lender. So, check your credit report in order to understand how your financial condition will be perceived by the lender. If your credit report includes missed payments, bankruptcy or repossession, you will be offered a higher interest rate. In such a situation, you may want to make down payment of a large amount to reduce the loan amount.

Your Income

A substantial income and a stable job are indicators of regular monthly payments. If a lender is not worried about receiving regular payments, he/she will not make down payment compulsory for you.

On the other hand, if you have just switched your job or you do not have a regular source of income, lender may demand a higher down payment amount from you.

Your Choice - New Car or Used Car?

The depreciation rate of a new car is very high. If you make down payment of an insignificant amount, you will face the situation of an upside down car loan. So, it is better to pay at least twenty percent of the total car price as down payment. If you are inclined to buy a used car, ten percent of the car's price is considered ideal for down payment.

A Trade-In

If your current car has positive equity, you can use it for a trade in. The dealer will deduct the value of your current car from the price of new car. It will help you in lowering the total price of the new car as well as the down payment amount.

Once you consider all the above-mentioned factors, you will be able to calculate an ideal down payment amount for buying a new car.

Although important, down payment is not compulsory for getting an auto loan. Rapid Car Loans will provide you with no down payment auto financing program and help you avoid the need of putting money down. Apply now for no obligation bad credit instant car loan quotes.

Can I obtain a Car Loan if I am New to America?

Born abroad but now living in America? One thing is common for all immigrants: you cannot remain unaffected by the car culture of America. The car is the dominant mode of transportation in America. You need it to go places.  And, car loan is the only mode for obtaining an automobile.

Why is a Car Loan compulsory for buying a Car in America?

It is not compulsory for making a car purchase in the country. But, it has become a norm because of the following reasons:

>> High Cost of Automobiles

>> Lower Buying Capacity of Car Buyers

>> Easy Loan Approval by Lenders

>> Easy Way of Building Credit

Buying a car with the help of a car loan is very common in the country. People opt for a car loan even when they have the required amount of money because they do not want to part with their savings. Also, it helps them in building a credit score that is required to make a big purchase such as a home.

How to obtain a Car Loan when you are New to the Country?

If you are a new immigrant and want to obtain a car loan, you will have to provide valid proof of your identity. Lenders require your SSN (Social Security Number)  for the purpose of identity verification.  The SSN is issued to the following people:

>> Natural Born U.S. Citizens

>> Naturalized U.S. Citizens

>> Legal Permanent Residents

>> Temporary (Working) Residents  under section 205(c)(2) of the Social Security Act

If you have a valid SSN, obtaining a loan will become effortless for you. Simply provide your SSN details along with the following information for obtaining loan approval:

>> Employment Information

>> Income Details

>> Residential Information

>> Information related to other Debts and Utility Bills

How to obtain a Car Loan without a Valid SSN?

If you are a new immigrant and have not received a valid SSN from the Social Security Administration, do not worry. You can obtain a car loan.  Choose a lender who doesn’t demand SSN, instead accepts any of the following documents for the purpose of identity verification:

>> TIN (Taxpayer Identification Number) issued by Internal Revenue Service

>> Foreign Driver’s License

>> Foreign-Issued Passport

>> U.S. Government-Issued ID

Search for a lender who doesn’t require SSN and apply with him/her. You can make use of the internet and make your loan search comfortable.

While searching online, make sure that you choose a reliable and reputed car loan website. It will save you from identity frauds.

Now that you know everything about obtaining a car loan in America, you should not be apprehensive. Remember that America is the Land of Dreams! If your dream is to buy a car, no one can stop you from becoming a proud owner of a car.

Monday, July 13, 2015

Strategies to avoid Car Repossession

Is Car Repossession a Reality for you?

Do your car loan payments keep you awake at night? Are you threatened by repossession of your car? If you are finding it difficult to manage your payments, you are not alone. There are thousands of Americans who are suffering from the same problem.


Why should you avoid Car Repossession?


You may think that there is no other option than to let the lender take away your car. But, it is important that you leave no stone unturned in avoiding car repossession because of the following reasons:

>> You will not have a car to drive after car repossession
>> It stays on your credit report for seven years
>> People with car repossession do not get car loans easily
>> You will have to pay the balance due on your loan after car repossession
>> Lenders may sue you for the costs associated with repossession of a vehicle.

What Strategies should be followed to avoid Car Repossession?


Car repossession is bad because it has catastrophic complications. So, it is essential that you avoid it with the help of the following strategies:

Make a Few Payments


No lender will repossess your car even when there is a chance of getting back a part of his investment. So, it is important that you make a few payments. It will help you in avoiding car repossession.

Do not worry if unemployment and lack of job opportunities have caused a terrible cash crunch. You can raise money by selling a few of your belongings such as jewellery, extra furniture and other appliances.

Apply for Deferment


Lenders want to do business and earn money. They lose money when they repossess a car because of the following reasons:

a. They have to undertake unnecessary paperwork
b. They have to bear the repossession costs
c. They are unable to generate enough money by selling the car at an auction
d. They still have to recover the balance due on the loan from you.
So, whenever you face the possibility of car repossession, work with your lender. There are chances that he may provide you a deferment of a month or two. The time period is enough to find a new job.

Opt for Loan Restructure


If you can manage a smaller monthly payment, you can ask the lender to restructure your loan. He will extend the loan term and reduce your monthly payment amount. You should not worry about the high amount of interest that you will pay after loan restructure because you can refinance the loan in future.

Sell the Car


If your family has more than one car, you sell your car and share the other car/s with your family members. It will help you avoid the bad credit ratings that accompany repossession.

Remember that selling your car is an option only when your car has equity in it. If you owe more to the lender than the car's current value, you won't be able to repay the lender.

Ask for Help


A friend in need is a friend indeed!

If you cannot sell your car or make smaller payments, ask a friend or a family member to help you make payments. If someone agrees to assume the responsibility, you can transfer the title to his name.

Being in a financial crunch can be distressing, but do not lose hope. By employing the strategies mentioned in this guide, you can work your way out of this terrible situation.

Saturday, July 11, 2015

How much Down Payment is Ideal for Getting a Car Loan?

If you make an impulsive decision of applying for an auto loan, you will end up damaging your credit score and your financial stability. Obtaining an auto loan is a process. You will have to research several financial alternatives available to you and devise a plan for making regular payments. Additionally, you will also have to make down payment.

Down Payment Calculation for Getting a Car Loan

Why make Down Payment?

The reasons for making down payment are as follows:
>> It reduces the total loan amount and lowers your loan burden;
>> It helps in improving your approval chances;
>> It manifests a stable financial situation to the lender; and
>> It helps bad credit borrowers in getting an auto loan.

What is the Ideal Down Payment Amount?


The more, the better!


When it comes to buying a car, it is better to make as much down payment as possible. But, it is not possible for everyone to make down payment of a substantial amount. So, here are a few factors that will help you decide the ideal amount for making down payment:

The Condition of your Credit


A credit report manifests your financial situation and credit worthiness to the lender. So, check your credit report in order to understand how your financial condition will be perceived by the lender. If your credit report includes missed payments, bankruptcy or repossession, you will be offered a higher interest rate. In such a situation, you may want to make down payment of a large amount to reduce the loan amount.

Your Income


A substantial income and a stable job are indicators of regular monthly payments. If a lender is not worried about receiving regular payments, he/she will not make down payment compulsory for you.


On the other hand, if you have just switched your job or you do not have a regular source of income, lender may demand a higher down payment amount from you.


Your Choice - New Car or Used Car?


The depreciation rate of a new car is very high. If you make down payment of an insignificant amount, you will face the situation of an upside down car loan. So, it is better to pay at least twenty percent of the total car price as down payment. If you are inclined to buy a used car, ten percent of the car's price is considered ideal for down payment.


A Trade-In


If your current car has positive equity, you can use it for a trade in. The dealer will deduct the value of your current car from the price of new car. It will help you in lowering the total price of the new car as well as the down payment amount.


Once you consider all the above-mentioned factors, you will be able to calculate an ideal down payment amount for buying a new car.