Bad Credit Car Loans: Auto Financing Does Not Have to Be Complicated
Most bad credit consumers try to get auto financing at their local dealer; in most cases they get rejected, and in some – ripped off. Online lending network of auto lenders ensures high approval rates while maintaining competitive terms and rates.
Borrowing Opportunities for Auto Loan Seekers
The first, and often the most significant, mistake auto loan seekers with bad credit make is that they attempt getting financing from their local banks or dealers. Once your bank or a dealer would find out about your credit ranking, they would do one of the two: either reject your application right on the spot, often in a very embarrassing way, or approach you with a huge down payment requirement and extremely unfavorable loan terms, featuring high monthly payments and skyrocket interest rates.
Therefore, you should take banks and auto dealers off your auto loan shopping list altogether. The best place to find bad credit auto loans is internet. Numerous lending sites and portals encourage applications from consumers with bad credit and have a vast network of lenders able to approve such loans. Most of them offer instant pre-approvals and same-day approvals. In addition, loans financed by online lenders very often have better terms and rates than banks and auto dealers may offer.
Online Lenders Offer Numerous Benefits
Online lenders offer numerous benefits to bad credit auto loans seekers. Unlike dealers, they would not confront you with high down payment requests to approve your loan application. In most cases, there are no down payment requirements whatsoever; you may even include sales tax and additional warranty in your auto loan amount. Another huge benefit of auto loans offered by online lenders is the reduced interest rate. While bad credit borrowers should not await rates available to prime credit holders, the interest and fees are very competitive. Unlike dealers, online lenders do not mark up their loans to make and extra profit and are able to save you a good chunk of your hard-earned cash.
Online Applications Save Time and Nerves
Most people spend hours in the dealership showrooms, filling out piles of paperwork and waiting for the salesperson to run the numbers with the finance department. Very often, these long hours end in nothing but disappointment resulting from loan rejection. Online applications are very different. All you have to do is to devote several minutes of your time to fill out a short questionnaire about your car buying needs and a one-page application with your personal information. Wait time is minimal, as many lenders process your application quickly and are able to make a decision within minutes. Once your application is pre-approved, all you will need to do is send in a couple of recent paystubs and a copy of your ID – as simple as that!
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ABOUT THE AUTHOR
Lara Sawyer is the author of this article. She works successfully as a financial advisor with years of expertise on Guaranteed Bad Credit Loans. She publishes informative articles about Money Lenders for Bad Credit, home loans, credit cards, auto loans, business loans and others at http://www.fastguaranteedloans.com