Monthly Archives: March 2016

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.

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!

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