Buy the Right Used Car With These Tips

If you’re looking to purchase yourself a used car, here is some advice on what you need to keep in mind as you ready to get over to the dealership.

Have a Budget

Budgeting is an important thing to do in the process of buying a car. If you’re someone who has bad credit, then this is where you also need to see what you can safely afford every month. Make sure you also take into consideration how much it’ll cost to maintain the car. While it can be difficult to really know how much you’ll need, it’s safe to start setting up a buffer in your savings as a just in case should anything happen to it. The sad truth about owning a new or used cars is that things do and will happen and that many buyers don’t consider the money they’ll need beyond the purchase price.

Have an Idea of What You’re Looking For

Do you have a family of four? How often are you driving? What is your typical commute distance? These questions are what you need to ask so you know where to narrow your car buying focus. If you need a family car, you’re not going to be looking at smaller coupes or SUVs. If you drive a longer distance, you’ll want one that has better gas mileage. This is where what you want and what you need start to conflict. We all have a dream car, but sacrifices must be made to get the best possible car for your lifestyle.

Test Drive It

Also give your car a test drive. Just because it looks nice on the lot doesn’t mean it feels good with your hands behind the wheel. It might not even be a problem with the car, but it might not suit you. The best, and really only, way to tell is to give the car a test drive. Don’t rush it, let yourself get the feel for the car and see if it is truly the one you want. If not, that’s when you go back to the second step on this list and see the other cars on your preferred list.

If you have bad credit or low credit and need to get a new or used vehicle, be sure to contact us at Approved Loan Store. Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

Avoid This Common Used Car Buying Mistake

What are some mistakes that used car buyers can make?

What is interesting is that one of the first things that come to mind when that question is asked is not researching price or not staying in budget or not even making sure to shop for a car that suits their needs. One of the most overlooked things that used car shoppers can do, according to USNews, is not looking at the tires.

Speaking with a senior consumer advice editor at Edmunds, they found that most people don’t give the car they’re looking at a proper inspection. One of the things that gets missed even more is the tires. According to the editor, Ron Montoya, buyers don’t look at the threads of the tires and see how old the tire is. You can look at the sidewalls and see a four-digit number that will show you the week and year of the tire. Knowing this simple fact can be a headache down the road for cost if you are not careful.

So bare that in mind the next time you’re doing used car shopping. While we implore each and every buyer to examine their budget and make sure to set a price range for a vehicle they can afford and not to go over it, we don’t do enough to instill in them the knowledge of inspecting the vehicle. It’s always a wise idea to take your time and test drive the vehicle, but looking at the tire age is also very important.

Getting an Auto Loan After a Bankruptcy

Car shopping with bad credit is a struggle but what about if you have a bankruptcy? Going through a bankruptcy can make it feel like you have nowhere else to turn and that it is the end. The key to fighting back against bankruptcy to still get the auto loan for the car you need is fighting against the idea that a bankruptcy is the end of the road.

It’s a hard thing to have to go through a bankruptcy, no one is denying that. That doesn’t mean it has to be the dark cloud that forever looms overhead though. There is a societal aspect to seeing bankruptcy as something that only happens to people who are irresponsible with their money, that they couldn’t deal with their finances and are suffering the consequences. This is the wrong mentality. Bankruptcies happen to good people who have structured finances. The problem with life is that things happen from illness to job loss and anything that dramatic can crush even the most well thought out financial planning.

What to keep in mind when you’re looking for an auto loan post-bankruptcy is what lenders look at. They will look over payment history to see how you dealt with previous loans and if you missed any payments etc. They will also look to see how an uncontrollable event like job loss impacted your finances. Your current financial situation as well as income will also be taken into account and that could lead to the lenders asking for more money down on the vehicle in order to secure a loan.

The reality is that you can still get an auto loan, but keep in mind that you’ll be having to make compromise. You may not be able to obtain the dream car you wanted, but if you can get an auto loan and keep up with the monthly payments, you never know where you’ll end up. It certainly looks great to lenders that you’re keeping up on your payments after a bankruptcy. Keep the faith and be willing to put up with limitations and you can find your financial life still possible after a bankruptcy.

Image courtesy of everydayplus at FreeDigitalPhotos.net

What to Know About Down Payments

A down payment is a powerful tool in getting a car loan. The question is, for many people, how much money to put down as a down payment? The conventional wisdom, according to Edmunds.com, is that a down payment should be 20%. The problem with that number is how many people struggle with circumstances today that make them unable to have that much for a car at the time of purchase. How does that effect the number people need for a down payment?

Down payments have been steadily decreasing from that 20% number. The reasoning is because car prices are increasing, but the wages the average buyer is making has stayed the same. The average family has less money to use for something like a down payment. So they don’t have the extra income to spare, hence the decrease in the amount.

That still doesn’t answer an underlying question: how much should you put as a down payment? The answer, sadly, has no number, instead it deals in one general thought process. It is up to you to figure out how much money for a down payment is available to you. How much have you saved? How much can you comfortably pay up front? These are some of the important questions to ask if you want the answer to how much cash should you put as a down payment.

Steps to Rebuild Your Credit Score

Credit is a number that makes the world go round for so many and that’s why when struggling with bad credit, it can be a tough world to deal with. So much of life is structure around credit score and that makes it important to do everything in your power to have good credit and maintain it. If you’re struggling with bad credit, it’s important to know that it is never too late to start to rebuild and get yourself back in good standing. Here is some tips on how to rebuild your credit.

First, know your credit score. That means you’ll be needing to have your credit report, which is something you can do using such tools as AnnualCreditReport.com. This gives you access to the reports by the three major bureaus: Equifax, Experian, and TransUnion. When you have the reports that is when it is time to do some homework. Examine each one and look out for errors. Highlight each one and start the process on getting those removed. Errors that appear on your credit report can be a major hassle to get resolved, but the pay-off is worth the trouble.

Second, get caught up on your payments. Your ability to pay your bills regularly and on-time has a major impact on your credit score. That is why it is important to get your payments caught up. If you’re behind, all the hard work you’re doing to rebuild your credit may be in jeopardy. The best way to do this is to speak with the creditors and let them know what is happening in your life that has caused you to be behind. Work with them in establishing a way to get caught-up.

The next step is keep making those payments on time. Once you’ve put yourself in good standing and have a plan to repay your loans, don’t fall behind. You will look good to the bureaus if you’re paying your bills on time. Payment history is an important facet of your credit score and doing anything and everything you can to show this to be in good standing will be a fast and efficient way to rebuilding credit.

Fighting Back Against Bad Credit

So you have poor credit. It may seem like a mountain and is definitely difficult thing to have, but that doesn’t mean that you will be unable to get an auto loan. Most people seem to think that having bad credit is the end, to curl up on the bed and give up. What most people don’t realize is that even with bad credit, you can get an auto loan. An auto loan that can lead you to being able to fix your credit situation.

What needs to happen is action on your own behalf. You need to start taking the steps to fixing your credit problems and an auto loan is a great way to get started. The process to get started is with your credit report.

As with all credit issues, accurate reporting on your credit report is key. You are able to get your credit report from the three major companies, Experian, Equifax, and Transunion, once a year and you should. Those documents are so vital and most people don’t realize it. Comb over it and look for any and all discrepancies and make note of them no matter how minor. Once you’ve found them all, time to get them removed.

It is easier said than done. It may take multiple letters and will take time, but it is worth it. Getting any and all errors removed may show that your credit is not as bad as it seems.

Having poor credit is not a jail sentence, it is a wake-up call. Should you need to get something like an auto loan for a car that you need, knowing you have bad credit is the first step in getting it resolved.

Pitfalls to Avoid When Car Shopping With Bad Credit

Life is already tough enough for people looking to purchase a vehicle with a bad credit. They’re options are more limited than the average buyer and it can really weigh on people when they go car shopping. It is easy for an individual suffering from bad credit to just feel the weight of the world stacked against them. There is hope for this person. There is plenty that this person can do to help make the car buying experience easier and better if only by avoid a few common pitfalls.

First, don’t just randomly buy a car. As weird as that sounds, like someone walking around a car lot with a blindfold on, what it really means is not to accept that this is the only vehicle possible. Think about the vehicles you have available for you. Research the vehicle(s) that have been made available for you and see which the best value is truly. Ask questions, take it for a test drive, do the usual business people are supposed to do when auto shopping. Just because you have bad credit doesn’t mean to ignore the process.

Look for a down payment option. Down payments are very important for people with bad credit. The more you are able to put down towards a vehicle, the better off you will be as far as options are. While it isn’t always true, it is something to be explored. Make sure you know how much money you can possibly bring with you as a down payment. Don’t put yourself in a position where it’ll hurt your ability to pay your monthly loan on time. Know your finances and see what can be sparred for a down payment.

Using these tips and will be able to help you when you’re fighting to get your credit back. There’s plenty more, but these two will help you out when it comes time to get shopping. If you need any more help, contact us at Approved Loan Store. Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!

Good Credit Habits to Start Practicing

People struggle with credit scores. It is not something that is common knowledge and it’s not like it is a focus in our education system. For something as impactful as credit can be, you’d think there would be. That leaves it up to the individual to educate themselves on what to do to improve their credit should life occur and you find yourself struck with the ‘bad credit’ moniker. In the event that you either would like to avoid having bad credit or have gotten yourself back in good standing, here is a few helpful credit habits to get into to ensure you continue having good credit.

Pay On Time:

Few things look better on credit reports than those that pay their bills on time. From cell phone bills to car loan bills; each one that gets a regularly monthly bill needs to show that you are buying it on time. Do what you can to organize your life around being diligent about buying these bills

Double-check the due dates. If you schedule an auto-pay, ensure that it goes through every month. Anything that can be done to remind yourself that a payment went through on time will be for the better, no matter how annoying it may feel at the time. The benefit is worth the annoyance.

Guard Your Credit Report:

Knowing what is on your credit score is vital in this day and age. It is important to know if what is being reported on there is fraudulent. You’d be surprised how many people have errors on their reports that can be resolved and don’t do anything about it. The usual reason is because they don’t know. Take full advantage of your free credit reports and take the time to go through it. By reducing errors and removing them, it can be a major boon to your credit score overall.

Deal With Issues ASAP:

Missed a payment? Got an error on your credit report? Don’t delay, get them fixed as soon as possible. If a situation arises that will have a massive impact on your ability to pay monthly bills, such as job loss or a medical issue, make sure to speak with creditors. The sooner they know and can start working with you to help your situation and make life easier, the better. Don’t let yourself get dragged down when there are ways to get help.

Image courtesy of Stuart Miles at FreeDigitalPhotos.net

How High Should Your Credit Score Be for a Car Loan?

Do you know your Credit Score? Even for those who are able to answer that question without looking it up have another problem. We hear all the time about ‘good’ credit and ‘bad’ credit scores but it’s never mentioned what credit score is needed to get yourself a car loan.

A major issue with determining what is the ideal score for obtaining something like a car loan is that the factors differ depending on where you go looking. Credit.com quotes a chief operating officer at Prestige Financial, “There is not a minimum score I could say. There are many lenders, many different opportunities, and there are many factors that go into an auto loan other than your credit score.”

What is these other factors that he mentioned? Besides credit score, it is also debt-to-income ration, employment history, and how well an individual has paid their loan in the past. In the case of an auto loan, have you had one in the past and if so, how on time were your payments?

Buyers with low credit scores have been in luck in the most recent years. The lending restrictions has eased up since the recession. The average score for a new car buyer in the last quarter of 2015 was 711. The same time frame in 2014, the credit score was 712. The average has been steadily decreasing since it hit a peak in 2009, right after the recession hit.

The average credit score for a used car buyer is following the same decline. Its peak during the recession was at a number of 659 and has dropped to 649 since then.

That still doesn’t do a good job of answering the question: What should your credit score be? Using the average listed for both new and used is a good metric. If you’re a ways away from the average, then it is time to start working on getting your credit score turned around. It’s worth the effort to get it fixed so you can open up opportunities for a better deal on a car loan.

Image courtesy of (Stuart Miles) at FreeDigitalPhotos.net

Auto Sales in 2015 Hit Record High as Auto Loans Become Easier to Obtain

When the recession hit, the auto world was one of the industries hit the hardest. The market it had relied on was no longer spending money and they in turn were about to go belly up. With a controversial loan, the industry was able to keep going to 2015, where it manage to set a record sales year. 2015 may be the year where it finally shows the auto industry is back.

For years, people avoided buying a new or used car. They simply couldn’t afford it with due to elements of the recession. For many, it was also because lenders had cut off access to subprime loans. Those with bad credit or low credit were unable to find car loans even when they needed it. As the years went on and the auto industry slowly recovered, that policy of being harder on offering loans started to go away and the lenders were being more open to loaning.

The employment rate is at the highest it has been in years and gas is at the lowest it has been since the recession first hit. It’s no wonder that people are finally getting out to purchasing vehicle. For some, it had finally hit the breaking point. They had been holding off and hoping that the current vehicle they owned would last through the hard time. Many drivers were avoiding trading in a used vehicle being unable to afford it. They sat on their current vehicle for longer than recommended and are now at a point where they simply need to get a new or used vehicle.

If you’re one of those drivers, who has held out for as long as they could or if you have bad credit or low credit and need to get a new or used vehicle, be sure to contact us at Approved Loan Store. Get started today by filling out our secure online auto loan application here, and for more auto news and buying tips, like Approved Loan Store on Facebook, follow Approved Loan Store on Twitter, and subscribe to Approved Loan Store on YouTube!