Much like the bad credit home loan market, the bad credit automobile loan market is a crowded and competitive arena. If you find yourself in the position of needing a bad credit automobile loan use caution in selecting your lender.
While most lenders dealing in the bad credit car loan sector are honest, there are those who skirt the law with predatory loan practices.
Knowledge is the best defense against these dishonest loan agents. Know more about your own credit than the lenders do. Arm yourself with a recent credit report and FICO score. If a lender says he has different information about your credit than you do, ask him for his sources.
If at all possible deal with a financial institution where you already have a banking relationship. Many banks and credit unions will help you apply for "second chance" programs. They know that when they help their customers in the short run they will retain the business of those customers in the long run.
Be Careful With Who You Apply With - Be extremely cautious when responding to any solicitations from bad credit lenders no matter how those solicitations are received. Do not give any sensitive personal information to a lender until you have checked the company out with the Better Business Bureau.
The best course of action is to initiate contact with a lender yourself from a list you have compiled through the Better Business Bureau and personal references. Don't be embarrassed by the fact that you are having to inquire about a bad credit automobile loan. Many lenders make more money off of their bad credit customers than off of their more credit worthy customers.
Find out the current interest rates - Interest rates fluctuate from day to day, so check them often. Depending upon the state of your credit you can expect to pay from as little as 2% above the average rate to as much as 17% above the average rate. Rates above this are in many cases illegal. Watch out for lenders who charge the legal rates but tack on an assortment of finance charges and prepayment penalties
Research The Price of Your Car - When you have narrowed down your car choices, research the value of the different models. The price of a car being financed with a bad credit loan may be a little higher than the same car for a good credit loan, however, the difference should only be a few hundred dollars not a few thousand dollars.
You can become trapped in loan if the dealer inflates the price to the point where the car is financed for more than it is worth. Just as you will shop for your car, shop for your lender and let all of them know that you are talking with more than one company. If you think a lender can do better, state your case and ask for different terms.
Any reputable lender will put its proposals in writing with all the blanks filled in. Further, you should always be allowed ample time to read all of the loan documents. Walk away from any lender who pushes you to sign something that you haven't had time to read. There are compromises you will have to make because you need to obtain a bad credit auto loan.
These compromises don't include being taken advantage of by a predatory lender. A bad credit auto loan should be a stepping stone to reestablishing your credit not a trap that may result in additional credit difficulties.
Thursday, September 1, 2011
Thursday, August 25, 2011
What to Do When Your Car Doesn't Start
When you rely on your car for every day essential errands, your day can take a downturn when your car unexpectedly won't start. If your car doesn't start while you are out, you may not have the right people and/or resources around and you may be left stranded.
What Could Be Wrong?
If your car was running fine and all of a sudden it doesn't start, the first place to look is the car battery. The battery may have become discharged or may be low on power. Luckily this is an easy fix.
What Can I Do?
Carefully open the hood and look at the battery. See if you can observe it being in place. Observe the cable clamps. If they appear loose, or if you see powder like accumulation or corrosive build up, that may be the target repair problem. The corrosion from the battery terminal must be cleaned and the clamps must be tightened to make sure it doesn't move.
If the battery is not the problem, check to see if it might be something basic such as low fuel or the car may not fully in park.
Safety First
If the car is somewhat running, try to get to a safe location such as a parking lot of a business that is still open. If the vehicle is not running, but can coast in neutral, guide the car to the right shoulder, but stay on level ground. Leave emergency flashers on so other drivers can notice you.
If the car is stuck in traffic, just turn on the emergency flashers. You and your passengers should not remain in a car that is stuck in a busy area, especially if there is potential for the car to be hit from behind. Exit from the side away from traffic.
While waiting for help, never stand behind or in front of a stranded vehicle. If you are unable to call for help, you can try to safely signal other drivers by raising the hood.
If you do not have an emergency kit handy with a flag, flare, or warning triangles, then you can tie a bright colored cloth or scarf to the antenna or driver door handle. Seeing these signals can help prompt an oncoming driver to slow down while approaching.
Where Do I Send My Car?
Most emergency roadside services will pay for a tow within a 100 mile radius of the area you are stranded. It is a good idea to keep the phone numbers and addresses of repair facilities you prefer handy in your car as a reference.
Or if you are traveling, try to bookmark in advance potential directories you can easily access from a smart phone or GPS. Some emergency roadside services, offer mobile applications to access pre-screened facilities nearby.
If you are a person who tends to forget your membership cards, always keep a copy of your membership letter with member number handy in your car.
If you have a preferred repair facility, make a mental note to ask them their procedure for helping existing customers when they are stranded. Some repair facilities have towing services they have established relationships with and may be able to help you avoid the long wait if you are stranded.
Others may offer a courtesy car service to come and pick you up if you are stranded during their normal business hours. Asking these questions in advance can save time and/or money.
What Could Be Wrong?
If your car was running fine and all of a sudden it doesn't start, the first place to look is the car battery. The battery may have become discharged or may be low on power. Luckily this is an easy fix.
What Can I Do?
Carefully open the hood and look at the battery. See if you can observe it being in place. Observe the cable clamps. If they appear loose, or if you see powder like accumulation or corrosive build up, that may be the target repair problem. The corrosion from the battery terminal must be cleaned and the clamps must be tightened to make sure it doesn't move.
If the battery is not the problem, check to see if it might be something basic such as low fuel or the car may not fully in park.
Safety First
If the car is somewhat running, try to get to a safe location such as a parking lot of a business that is still open. If the vehicle is not running, but can coast in neutral, guide the car to the right shoulder, but stay on level ground. Leave emergency flashers on so other drivers can notice you.
If the car is stuck in traffic, just turn on the emergency flashers. You and your passengers should not remain in a car that is stuck in a busy area, especially if there is potential for the car to be hit from behind. Exit from the side away from traffic.
While waiting for help, never stand behind or in front of a stranded vehicle. If you are unable to call for help, you can try to safely signal other drivers by raising the hood.
If you do not have an emergency kit handy with a flag, flare, or warning triangles, then you can tie a bright colored cloth or scarf to the antenna or driver door handle. Seeing these signals can help prompt an oncoming driver to slow down while approaching.
Where Do I Send My Car?
Most emergency roadside services will pay for a tow within a 100 mile radius of the area you are stranded. It is a good idea to keep the phone numbers and addresses of repair facilities you prefer handy in your car as a reference.
Or if you are traveling, try to bookmark in advance potential directories you can easily access from a smart phone or GPS. Some emergency roadside services, offer mobile applications to access pre-screened facilities nearby.
If you are a person who tends to forget your membership cards, always keep a copy of your membership letter with member number handy in your car.
If you have a preferred repair facility, make a mental note to ask them their procedure for helping existing customers when they are stranded. Some repair facilities have towing services they have established relationships with and may be able to help you avoid the long wait if you are stranded.
Others may offer a courtesy car service to come and pick you up if you are stranded during their normal business hours. Asking these questions in advance can save time and/or money.
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