How to get an Auto Loan without a Cosigner?

The common question running through a first time car buyer’s mind: “Is it possible for an eighteen year old to purchase a car when the cosigning parent has a bad credit history?” Bad credit score, zero credit history and inadequate information about auto loans can compel you to think that having a cosigner is the only way out. A cosigner can drastically improve your chances of getting approval for an auto loan. However, purchasing a car is still possible in times when you cannot find a cosigner. Moreover, breaking some common conundrums about cosigning can provide a great deal of clarity in order to obtain the auto loan for your dream car.

Buying a Car without a Cosigner: Unravel the Mysteries

Buying a car without having a cosigner can be a tricky task. Many car buyers are ignorant about what happens when one doesn’t have a cosigner. Do not make an ill-informed buying decision. Learn which cosigning conundrums keep us from buying a car and what are the solutions to break them?

1)     Conundrum: Without a cosigner, I am bound to pay high interest rates.

Solution: A huge down payment is the ultimate evidence of your credit worthiness. A lump-sum amount at the beginning of the auto loan term will put you in a good position to bargain for good interest rates. Additionally, putting money down reduces the amount of your monthly payments. Remember that more the down payment, the lower will be your future auto loan payments. Once you put a good amount of down payment, the approval for the auto loan will not require a cosigner.

2)    Conundrum:  I need an exceptional income record for obtaining auto loan without cosigner.

Solution: If you have suffered from bad credit in the past, your creditworthiness is assessed by your current income. The amount of monthly income along with the stability of the employment plays a huge role in determining your reliability. A minimum monthly income of $1,500 is considered ideal for getting an approval without a cosigner. However, the minimum income requirements vary from lender to lender. Therefore, make sure you keep regular track of your income pay stubs and use it as leverage to obtain an auto loan without a cosigner.

3)    Conundrum: If I don’t have a cosigner, I cannot buy a new car.

Solution: When you do not have a cosigner, it may seem that new cars are out of reach. But, it is far from truth. A used car with a low price tag looks less risky to a lender. However, your options do not end there. With a strong FICO score and regular efforts to build a strong credit, you can purchase a new car even without a cosigner. In order to improve your credit score, build a good debt to income ratio, keep your credit utilization low and make timely payments. Once you have a good credit score, you can purchase a new, more reliable and updated car.

It is common to think about all the support you can get while applying for an auto loan, a cosigner being one of them. However, it is possible to obtain an auto loan even without a cosigner. With the rightly calculated moves, your dream of obtaining a new car will not require the pillar of support in the form of a cosigner.

3 C’s for Buying a Car with Bad Credit in Houston

Houston! We have a problem!

A majority of Houston residents use car to commute daily. It is a means to earn their daily bread and butter. However, Houston seems to have a problem with car buying and the reason behind it is bad credit score. Many car buyers in the Space City are staying away from making a car purchase because of a damaged credit score. However, there is a way in which you can buy a car with bad credit. Let’s learn how to go over the moon with an easy purchase.

How to make an Easy Bad Credit Car Purchase in Houston?

Buying a car with cash has become once in a blue moon event. With rising cost of vehicles and reducing savings, it is nearly impossible to buy a car with cold-hard cash. If you have set your heart on a car, do not wait for getting together the total price of the car. It may take too long to save the amount and you may end up losing the car. When you have a bad credit score, it is best to work with a subprime lender who can help you sail through the process easily. To obtain guaranteed auto loan approval in Houston, you need to follow a few simple rules. The bad credit auto loan rules are not set in stone. But, it is essential that you keep them mind while preparing for the process.

• Check Credit Score

Did you check your credit score a couple of years ago? Did a lender tell you about your terrible credit score in the past? Do not sulk in the past. Your credit score may have improved considerably after the July 1, 2017 rule. The credit bureaus no longer consider tax liens and civil debts that have inaccurate and incomplete information. In the past, many credit seekers were forced to suffer with a bad credit score because of inaccuracies in their credit reports. However, with the change, your credit score is bound to rise. So, it is essential to check your credit score before moving on to the car buying process.

• Cash Matters are Serious

The median income for a household in Houston is $37,000. The per capita income is $20,000. Although Houston is considered as a rich city, about 19% of the population lives below poverty line. And, it makes buying a car in cash nearly impossible. Do not worry if you cannot buy a car with cash. No one really does it anymore! But, you still need to manage at least 10% of the total cost for a down payment. Remember when your credit is bad, a little bit of down payment can help you to get guaranteed auto loan approval.

Consider selling your old car or seek a loan to get together money for down payment. If you want to avoid down payment, you must find a lender who is willing to offer you no money down auto loan in Houston. Most traditional lenders require down payment so, search the web for online auto financing companies.

• Cosigner helps a LOT!

A car can become a source of lifeline in Houston. The city has so much entertainment to offer in the form of theatres, music centers, parks, sports and more. When you are in a dire need of car, do not shy away from asking help. Ask your family or friends to become a cosigner for your Houston bad credit auto loan. Having a cosigner will provide assurance of regular payments to the lender. It will help you to create a positive image in the mind of the lender. It means getting low interest rates will become a reality for you.

So, ask your parents to help you with the car buying process. Find someone with a good credit score to become your cosigner. If your cosigner has had a few late payments and bankruptcy in the past, the lender will not accept his application. In such a situation, you can rely on a no cosigner auto loan.

Buying a car with a damaged credit score doesn’t mean saying yes to any loan term. Many bad credit borrowers avoid undergoing the process of buying a car in Houston because they believe no lender, under the sun, will help them make a purchase.

Remember buying a car with bad credit is no rocket science. It is simple when you work with the rules. Follow the rule of 3 C’s to obtain a bad credit auto loan in Houston easily.

California Bad Credit Auto Loans: Kill Two Birds with One Stone

According to California DMV, total number of registered vehicles in the state is 35,310,563. Out of the total amount, 25,244,537 are cars. It means the total car population of the Golden State is 25 million. It goes to show that Californians love cars. And as more and more households and businesses are added to the state every year, it puts additional burden on the state’s public transport, making car as the only comfortable mode of transport for its residents.

Do you want to buy a Car with Bad Credit in California?

When it comes to buying a car in California, there are a plethora of options for bad credit car buyers. You can choose a brand new car, a certified pre-owned vehicle or even a discontinued car model to make a budget-purchase. Once you are sure of the car, you need to move over to the financing part of the section.

Bad Credit Auto Loans California: How do they benefit?

Getting a bad credit auto loan may seem like a daunting task but you can reap multiple benefits by obtaining one. Learn how to kill two birds with one stone:

1. Get a Car

Car is a necessity in California. For people, it is a means of keeping their employment and sustaining their lives. So, if you think that you need a car, it is difficult to find an alternative. Buying a car means paying the cost of the car to the dealer as well as spending money at the California DMV on registration fees and taxes. With the rising cost of cars, auto loans have become inevitable.

Do not worry if you have got bad credit. With a bad credit auto loan, you can buy a car easily. The lender will even offer higher LTV if you have stable employment and earn regular income. Bad credit auto loans allow you to fulfill your dream of buying a car. Gone are the days when you had to plead to lenders for getting approval. Today, you will find several online auto financing companies competing for your business. So, do not worry if your credit reports reads ‘bad credit’, you can buy a car easily.

2. Improve your Credit Score

With a bad credit auto loan, you not only get to buy a car in California but you also stand a chance of improving your credit score. Getting out of a bad credit situation is a reality with the loans. Usually, all lenders report your payment history to the credit bureaus. If you make regular payments, you will see a steady rise in your credit score.

With an improved credit score, you will be able to obtain better financing deals in the future. And, if you have compromised on choice of car now, you will be able to buy your dream car with an excellent credit score.

The Best Time to Apply for an Auto Loan is now!

Since July 1, 2017, the three major credit bureaus have decided to exclude records of civil judgments and tax liens that don’t have minimum information such as name, address, social security number or date of birth. If you have similar information on your credit report, get ready for an increase in your credit score.

It is the best time to get your hands on an auto loan because your improved credit score will give you a better chance of finding an affordable one in California. So, do not spend time mulling over your bad credit score. Learn your credit score and get ready to apply for a bad credit auto loan. It is the ideal way of buying a car and improving your credit score. So, apply for the loan and kill two birds with one stone!

Obtaining a bad credit auto loan in California is simple and easy. Apply with RapidCarLoans.net to obtain pre-approved auto financing at the click of a mouse. Get ready for affordable monthly payments now.

The New Credit Regime: How will Bad Credit Car Buyers Benefit?

Buying a car and arranging for an auto loan go hand in hand. Whether it is your first car or your fifth car, you will require an auto loan at some point. While arranging for an auto loan, your credit score becomes the yardstick to measure your credit worthiness. A bad credit rating means auto loan rejection. However, there is a way out. Three major credit rating companies, namely, Equifax, Experian and TransUnion have decided to eliminate and exclude certain customer information from the credit reports. And, it will have a positive impact on your credit score.

The New Regime: What’s in it for Bad Credit Car Buyers?

1) Upsurge in Credit Scores

The new change relates to all civil debts and many tax liens. Civil debts and tax liens are enlisted under ‘Public Records Section’ of the credit report as they are unpaid tax bills. Unless there is elaboration of information, the credit bureaus will remove the debts and liens from one’s credit score. As a result, those who suffer from a bad credit score will see a hike in their score by approximately 20 points.

2) Higher Probability of Approval

The elimination of the civil debts and tax liens will increase your credit score. As a result, the chances of obtaining an auto loan will improve for bad credit car buyers. The new credit policy is implemented from 1st of July, 2017. Make sure that you have revised your credit report in order to get a better shot at getting approval for an auto loan.

3) Favorable Interest Rates

Lenders charge bad credit car buyers with high interest rates due to a damaged credit history. However, once your credit score increases, the interest rates will decrease. Therefore, the new credit regime will help bad credit car buyers to obtain an auto loan with low interest rates.

4) Improved Car Choices

The car choices for a credit challenged individual are limited. Lenders are comfortable to lend out money for a used car. However, the increase in the credit score due to the new regime can bring multiple car choices for a buyer. A bad credit car buyer with an increased credit score can avail an auto loan for a new car as well as a used car. Thus, a bad credit car buyer will have multiple car options to choose from.

Any change in any system causes panic. As a result, lenders will become cautious in approving future auto loans. Additionally, the cut off rates for credit approval may take a hike. However, the 1st July credit change will largely benefit bad credit car buyers. The increase in your credit score will be a means to improve your credit-worthiness in the eyes of your lender. Considering the new changes, the imperative step would be to know your current credit score and grab every opportunity to improve it. An improved credit score will be an easy way to avail an auto loan for your next dream car.

RapidCarLoans.net is a premier bad credit auto financing company of America. It continues to help with people with credit issues in securing their car dream. Apply now to obtain the guaranteed auto loan approval for buying your next car.

Buying a Car with your Spouse: Should you say ‘I do’?

A car purchase is a big decision. And, it becomes even bigger when you are buying it with your spouse. When it comes to making a big purchase, remember that your better half should make the journey sweeter for you, not bitter! Consider your spouse’s credit history, spending habits, income and several other financial aspects before saying ‘I do’ to the car buying decision.

Ever thine, ever mine, ever ours! - Beethoven

Once you say ‘I do’, there is no such thing as ‘mine’ and ‘yours’. Everything you own or will own in the future becomes ‘ours’. As a married couple, you may feel like bringing together your resources to buy something. It is a noble thought but when it comes to making a big investment such as a car, tread lightly.

Buying a Car with your Better Half: Deal with Bitter Questions

Buying a car involves making several decisions. You have to consider the type of car that you want to buy. But, before saying ‘I do’ to buying a car with your spouse, you will have to ask each other a few hard questions.

• What size of car will suit your needs? Also, decide on who will be driving the car most of the time. It will help you to narrow down your options.
• If you are going to expand your family in the near future, you must consider a kid-friendly car such as a minivan or an SUV.
• Consider the budget of the car. Will both of you contribute towards the monthly car payments? Are your incomes adequate to manage the car payments along with other debt obligations?
• Will you be able to manage a down payment? Usually, young couples have hard time getting together money after an extravagant wedding. So, consider your financial situation before visiting a dealership lot.
• The D-word is often off-the-table for young married couples. However you must remember that in a situation of divorce, a co-buyer will be responsible for the car even if he/she doesn’t use it. Also, division of assets can be a problem when you own a car with your spouse.

A Co-Buyer or A Co-signer: The Big Auto Loan Question

Discussing the size of the car and the budget are simpler things compared to the big question of auto loan. It is not necessary for your spouse to have a good credit score. A few late payments in the past may have rendered a stain on your credit report as well. You need to discuss your financial situation and credit score before buying a car.

If you are a co-buyer, both of you will be the owners of the car. When you are a co-owner of a property, you and your spouse are responsible for the ownership of the car as well as the auto loan. The lender will review your credit score and your partner’s score to judge your joint auto loan application.

When you become a co-signer for the auto loan, you will only be responsible for the auto loan. You will have no ownership rights. It means the lender will not consider your personal income for approving the loan. But, remember that as a co-signer, the lender will require you to have a good financial standing as you will have to make payments if your spouse is unable to make them.

How to make a Decision?

Who has a Stable Financial Situation?

If your partner earns a good income and has an impeccable credit score, he/she will be able to increase your credit worthiness. The lender will consider his/her income to ascertain the loan amount. It will also help you in lowering the interest rate. With a stellar credit application, the lender may be tempted to provide you with a high LTV. So, when your spouse has a stable financial situation, you can ask him/her to become a co-buyer.

When both of you have average credit scores, sit with a loan officer to make a decision regarding the primary borrower. After considering your incomes, debts and credit scores, you will be able to make a secure decision.

When is going solo the Best Option?

In a real-life scenario, marriage doesn’t always mean being equal. One of you may have significant credit card debt. It is possible that you may still be paying your student loan. There is a possibility that your partner is just starting his/her career and doesn’t possess a good credit score. In such a situation, you have to think twice before making a decision.

If you think that your spouse is not financially responsible, it is best to buy the car on your own. Also, many spouses feel more confident when they have financial autonomy. So, think hard and do not be afraid to ask uncomfortable financial questions. Buying a car is a big responsibility. And, if you are not sure about taking the plunge, it is best that you become the sole owner of the car.

RapidCarLoans.net, the bad credit auto financing company, works with spouses to help them in becoming proud co-owners of a new car. And, if you need to buy a car on your own, no cosigner car loans will solve your problem quickly. Get in touch with the company to simplify your car buying process.