Car Repair Loans – Do They Exist?

Car repairs are expensive. While the initial cost of a car might not be that much, bringing that same car to the mechanic can easily empty your bank account. Hundreds of people lose money every day due to a car that doesn’t work properly. If you rely upon your car to get to work, to pick up your children, and to simply get around town, you know how important your vehicle really is. But, what can you do if you just can’t afford to pay for those pricey car repairs?

Have you considered applying for a car repair loan? That’s right – car repair loans do exist. These loans are reserved exclusively for those that cannot pay for car repairs up front. While traditional lenders might provide loans to those with stellar credit, these lenders hardly every approve any kind of loan for those with poor credit. If your credit report isn’t something that you are proud of, you can take solace in knowing that there are private lenders out there that will approve a car repair loan for you – no matter what your credit report might look like.

How does this type of loan work? While customary lenders will base your loan entirely upon your credit history, other private lenders will base a loan only upon your assets. This means that your bad credit report doesn’t matter at all. All you need to have is some form of steady income, a car that’s less than eight years old, car insurance, and a clear car title. Car repair loans through bad credit lenders are the easiest and most efficient way to fix your vehicle. Car owners with no credit, bad credit, and a history of bankruptcy can gain a specific car repair loan. This type of loan is also perfect for truck drivers.

Car repairs might cost a lot, but repairing a large truck is another kind of expense altogether. If your rig needs major alterations, don’t skip another day of work. There are lots of loads out there that you might be missing out on if your truck doesn’t work properly. Still, finding the money to repair a large truck might seem like an impossible feat. If you are stuck in this situation, you should know that car repair loans can apply to you as well – regardless of your credit history.

You’ll also be happy to know that paying back this kind of loan is also easily attainable. Monthly payments will always be well within your budget, and you’ll find those repayment terms easy to follow. Why should your credit report prevent you from getting where you need to go? It shouldn’t. Instead, apply for your car repair loan online right now. Within moments, you should be approved for that loan that you so desperately need. Why put your life on hold due to car repairs? Instead of trying to scrape together the money for those large car or truck repairs, sign up for an Auto Title Loan… and get your life back in motion.

Why Car Title Loans Are Proving to Be a Great Alternative to Payday Loans

In our current times it is increasingly becoming harder and harder to obtain credit. This is especially due to the fact that banks and lenders have tightened up on capital and have made it increasingly difficult for the average consumer to obtain credit. Customers with revolving accounts are even running into the problem of having their credit limits lowered as well as increased fees. When it comes to car loans especially, you’ll rarely find very many banks out there that offer a “fast credit” where you can get cash easily. That’s an option that was very easily available in years past but not in recent times. There are, however, still a few companies that offer a way to expedite the credit process. This is not to be confused with the payday loans with high interest rates that end up putting you in a whole that you have to climb out of.

There are consumers out there that need fast access to capital but they cannot get any capital just because there are so few options available. The only few types of ways to obtain fast credit is primarily through the use of secured financial instruments also knows as “secured loans.” Secured loans are when a lender typically gives the borrower funds or monies in exchange for the title of a property. Although the lender will not physically KEEP the property in question, they reserve the right to take it away from the borrower in the even that they do not receive the funds that were promised to them.

Car title loans are a good example of a secured loan. Although the car loan business is slowing down due to the credit crunch in the economy, car title loans are a rapidly growing industry. The way the process works between the borrower and lender is fairly simple. There are large amounts of money available to customers when compared to a standard payday loan because this is actually a secured form of lending. The collateral that is being offered in this scenario is actually the title to the borrower’s car. When securing a loan such as this it require very little effort and time and usually involved nothing more than just filling out a few simple forms either online through the internet or over the phone. Sometimes in rare cases they may ask a borrower to drive to a nearby location so the vehicle can be inspected to verify it is in working condition.

Although car loans and other types of lending often weigh the customers credit very heavily, title loans are based more on the value of the car. The reason for this is that title loans are based on the borrower using the title for the car as collateral for the loan. Most loans that you get at any title loan agency will cover up to fifty percent of the value of the vehicle although this depends on state or local regulations. In some cases, the agency may also ask that the borrower show proof or evidence that there is an ability to repay the debt by showing proof of income. Although the industry is in it’s budding stages there is great potential.

New Car or Truck Loans and Your Credit Score

If you’re in the market for a new car or truck, you are probably excited to choose the model, the paint job, and all of the accessories that come with the vehicle. However, your ability to finance the vehicle is just as important – if not more important – than all of the cool details and add-ons.

Most people opt to purchase a new car or truck through financing, which is the process of paying for a vehicle with loan installments. Financially, this is a much more manageable method of vehicle ownership than paying for a vehicle in one giant, multi-thousand dollar lump sum.

You can obtain a car or truck loan directly through your dealership of choice; through a bank, or through a private individual. Each method of payment comes with inherent risks and rewards (for example, loan rates through banks can be higher – but you might not have legal recourse, should there be an issue with a private or family loan). Before deciding upon a loan type, these risks and rewards should be weighed carefully.

For many Americans, though, the biggest risk factor when purchasing a new vehicle is whether or not they will actually be eligible for the loan in the first place. An individual’s credit score determines his or her credit-worthiness – this number will tell the lending institution whether or not that person will reliably make car or truck payments. The lower your credit score, the lower your chances are of securing a loan at an affordable rate. In fact, some people with especially bad credit scores might find that they are having trouble securing a loan in the first place.

What is a credit score, and how does it affect your ability to secure a new car or truck loan?

Kenneth Elliot wrote in the Mar. 21, 2008 edition of the American Chronicle, “…[T]he FICO score remains a primary tool for lenders. It may not determine the final decision, but it definitely influences the ‘first cut’ when presented with a stack of applications to approve or disapprove.”

FICO stands for the name of the consulting firm that developed standards for credit score calculation, the Fair Isaac Corporation. The FICO scoring rubric is the method most commonly used to determine an individual’s credit-worthiness. In the United States, credit bureaus or credit reporters analyze an individual’s financial past – debts, loans, utility bill payments, previous car loans or mortgages, and more – to determine whether he or she is a good lending risk. A FICO score ranges from 300 to 850. 850 is the highest credit score possible; individuals with high scores have little or no trouble securing loans. Conversely, credit scores near the lowest end of the FICO score range indicate individuals who are high-risk borrowers; these people usually have extreme difficulty managing their debts.

CNN Money reports that the average American carries over 9 thousand dollars in credit card debt. Late or missed credit card payments are one of the biggest factors that lower individual credit scores. Many people spend more money than they actually make, and become attracted to the allure of credit-based purchases — which seem like easy money at first. Those individuals with high debt-to-income ratios might not be able to afford monthly credit card payments. After a few months of missed or late payments, an individual might find that his or her credit score is surprisingly low.

The FICO credit score is determined by a sum of factors. Each factor of a person’s credit history is given a different weight in the final evaluation of his or her financial situation. When determining a credit score, the greatest weight is given to the individual’s debt and bill payment histories (Is he or she timely or perpetually late?) and the total amount of debt he or she carries. Less important – but still contributing to the final credit score – are an individual’s credit history length; the types of debts he or she carries, and how often he or she has applied for new credit. Individuals who make timely bill payments, who have established long credit histories, and who have demonstrated convincing abilities to manage debt often have the best credit scores.

Before you are eligible for a car or truck loan, you will be asked to supply your lending institution of choice – be it the car dealership, the bank, or a private individual – with some information about yourself. Information required might include complete contact information; a social security number; details about your mortgage or apartment lease, and employment records. The lending institution will turn your information over to one of three credit reporting agencies – Equifax, Experian, or TransUnion. The credit reporting agency uses the FICO algorithm to determine your credit score.

If your credit score is less than stellar, don’t despair. You might still be able to finance a new vehicle. Remember: You always have two options when it comes to pitting a bad credit score against stringent car or truck loan terms. You can work to improve that score, or you can shop around for lenders who are willing to work with you. However, if your credit score is good, then you are a preferred borrower, and you will probably be able to get loans with attractive (meaning low) interest rates. Go out there and get that new car or truck loan!