Why Banks Won't Let You Buy A Car - How To Get Them To Say Yes

I had an interesting discussion the other day with my customer. For some reason he was under the impression that he earned the privilege of buying a $50,000 Armada with no down payment despite never paying any creditor whatsoever. It's odd that this type of conversation is quite common with my customers. Furthermore, that particular customer was shocked to find out that they were declined from all of the banks that we submitted credit applications to. Simply put, because of his consistent lack of following through on a promise, he has burned his credibility to almost all of his creditors. So when you ask yourself would you loan yourself $100 and expect to get it back... and the answer is no we know that there is a significant issue. So my question is how do we get banks to say you're approved?

Step 1: STOP SPENDING MONEY!
If you are this bad into a situation, you are leaking money and it is best to simply stop spending money that you obviously don't have to spend. When you start spending money that you don't have is when creditors begin to frown upon loaning you money.

Step 2: FOLLOW THE MONEY
Track the way that you are spending money. Count your income. Log it. Look at where you are spending money. If you stopped spending it, you should show a lot of money in the bank. Create a budget based on your necessary expenses. Try and figure out your daily, weekly, monthly, and annual budget. Once you figure this out, go ahead and check to see if your monthly income received is equal to or greater than your expenses. If it is not, you need to do one of two things, reduce your expenses or increase your income. Both would be better.

Step 3: BUILD A SMALL NESTEGG AND PAY OFF DEBT
Once you have some extra money every month, put away a little and use some to pay off some debt. As you are doing this, you will soon have some money for emergencies and a track record of paying some debt. It's also in your best interest to contact your creditors and try to see if they are willing to work out something to help reduce the monthly so it doesn't get negatively reported against your credit!

Step 4: BUILD A DOWNPAYMENT
Once you've built up about 3-6 months of reserve, go ahead and start building up a down payment. At this point, your goal should be anywhere from $2k-$3k. Once you reach this amount, you should be able to qualify for most types of vehicles.

Step 5: BE REALISTIC FOR YOUR FIRST VEHICLE
Remember, you need to find someone that will be willing to give you a loan... period. You may not get into your dream car right away. You will need to build up. Once you have a good track record on an auto loan, banks will be more likely to help you out when you would like to upgrade vehicles. Make sure that when you commit to payments, you need to make sure that they are less than the amount of money that you are putting aside for your down payment. If not you will find yourself unable to pay all of your creditors and will be right back in your situation. You will pay high interest, but remember that this is only temporary, as you pay down your loan and pay off other debt, you will qualify for better rates, but it does take time.

This is a pretty simply laid out plan. Most people can't seem to follow it. Majority of people who attempt to follow this plan end up "needing" to go on a trip or "needing" to buy the cool doodad that was there. This is a process, but when you are as bad as some of the people that have come into the car store there is a long process to get them back to the point where someone will be willing to take a risk on you. If this is you, be realistic and take these steps. It will only benefit you in the long run.

Easily Get Auto Credit Loans Within 24 Hours!

Cars have become an essential asset for many individuals. Their life seems to take a halt without a car to take them to the office, their wives to a shopping center or their kids to the school. While a maximum number of people dream of owning a car, a significant section of such people don't actually have ready cash in hand to pay the price of their favorite model.

Banks have been the traditional lending institution for so long. However, the strict lending guidelines have made the banks a non-friendly entity to many individuals since they do not qualify for applying for auto credit loans from a bank. Those individuals either have a bad credit score or are in a debt or going through bankruptcy. Lack of the required amount of funds has therefore made them look for some other method to fulfill their dream of driving a brand-new car.

In such a situation, many of the individuals are getting in touch with a private car dealership who is offering car loans apart from selling a wide range of vehicles to the people in general. The lending process of the private dealers is quite simple and transparent. No hidden charges are involved and moreover, they assure you guaranteed auto credit approval whenever you approach them, 24/7 online or in-person.

Whether you have a poor credit rating or not, you will not face a problem getting a loan approved from the dealers. They do not carry on a lengthy inspection process but rather will ask you a few questions mostly general to clear all formalities and sanction you an auto loan within 24 hours time. Thus, unlike a bank, it doesn't matter whether you are jobless at present or is not getting your salary for the last few months.

Getting auto credit loans from a car dealership includes the following phases.

1. You visit a dealer's office or their website to read the information about car loan. In case you are not satisfied with the information, you will find a soft-copy inquiry form which you can fill up giving your name, address, contact number and posting the query to get a feedback quickly.

2. The website will contain an online loan application form for you to fill up your personal details along with the lending amount you wish to borrow from the dealer and submit the same for processing purpose.

3. Usually the processing time is short - within 24-hour you will get a call or an email to move forward with the lending formalities. You will be asked to meet personally as per your convenience for final discussion about the loan borrowing process, submission of papers, etc.

4. You meet the officials personally in the office and after a short meeting, you get your auto credit loan approved. The payment is done within maximum a week's time.

Thus, the entire process of application to approval is simple and hassle-free. All US-based car dealers also prepare the important documents for loan transfer, etc. themselves. You just need to submit your age proof, identity proof, etc. to get auto credit loans, easily and quickly.

Car Title Loans: Choosing the Right Financial Service

How is this a good investment for both the borrower and the title loan company? It is an excellent investment for the borrower. This is why: at this point of time, let's assume the borrower is in some kind of financial disposition. That means the borrower may have lost their job, can't afford to pay their rent, may need money for their child's school tuition; there could be a number of possibilities why the borrower is in search for instant cash. Depending on the borrower's vehicle value, the borrower can receive up to whatever the maximum the loan company may offer. Some loan companies offer up to $100,000 and others may offer lower loans of up to $5,000. Obviously if the borrower is driving a Mercedes or BMW they will be looking at a larger loan value, but every title loan company is different.

Let's look at the other side of the spectrum. How is this a good investment for the loan company? If we scroll back to the first few sentences in this article, we can see that the title loan company "uses the borrower's vehicle title as collateral during the loan process". What does this mean? This means that the borrower has handed over their vehicle title (document of ownership of the vehicle) to the title loan company. During the loan process, the title loan company collects interest. Again, all companies are different. Some companies use high interest rates, and other companies use low interest rates. Of course nobody would want high interest rates, but the loan companies that may use these high interest rates, probably also give more incentives to the borrowers. What are the incentives? It depends on the company, but it could mean an extended loan repayment process of up to "x" amount of months/years. It could mean the loan company is more lenient on the amount of money finalized in the loan.

Back to why this is a good investment for a title loan company (for all the people who read this and may want to begin their own title companies). If by the end of the loan repayment process, the borrower cannot come up with the money, and the company has been very lenient with multiple loan extensions. The company legally receives the collateral of the borrower's vehicle title. Meaning the company receives ownership of their vehicle. The company can either sell the vehicle or turn it over to collections. So are car title loan companies a scam? Absolutely, NOT. The borrower just has to be careful with their own personal finances. They must know that they have to treat the loan like their monthly rent. A borrower can also pay-off their loan as well. There are no restrictions on paying a loan. He or she could choose to pay it monthly, or pay it off all in a lump-sum. Just like every situation, the sooner the better.

Car Title Loans: The Pros and Cons
It is very helpful to analyze the pros and cons of a car title loan before you decide to take a loan out. Learning about your financial investment before you finalize anything is a great financial tool to success. A borrower must consider their options fully before making a decision.

If you go online to most car title loan companies and read their "about us", "apply-now", "FAQ" pages you will see how bias their information really is. This is called false marketing. Just like the terminology "false advertising" most of these companies never state the entire truth about their company. They may hire outsourced journalists and columnists to write their content. Read the content before you make your final decision. If the content is cheesy and uses imagery in their content, the company is probably bullshit. Writing jargon in articles, is not something to brag about, but come on? Really? This is 100% needed! An example of poor imagery content may be: "Tired of thunderstorms and rainy days, get a car title loan today, and turn your day into a bright-sun shiny day". The content shouldn't be a story, if the borrowers really wanted to read a story, they could take their "nooks" out and read an article from "Reader's Digest". The content should be straight to the point, to get the borrowers' to want to receive a loan from the car title loan company.

The Pros of Car Title Loans
The most clear-stated pro would be the advantage of receiving instant cash. Anyone could walk into their local 7-11 or convenient store and purchase a state lottery ticket. That process is extremely easy; however the probability of receiving a large amount of cash instantly is extremely low. The probability of receiving instant cash at your local auto loan company is extremely high. Unlike traditional banks, and credit bureaus, another advantage of the car title loan industry is NO CREDIT CHECKS. Most of the time, borrowers come to tile loan companies because they're stuck in financial situations. Their credits scores are usually poor at this point, after collections have had to continuously made adjustments because they couldn't pay their bills on time. That is a major "Pro" for a car loan company. No matter what the borrower's credit score may be, the borrower is still qualified to receive a car title loan. Another pro of the car title loan industry (which was actually mentioned previously in the article) is since the borrower is putting their car loan as collateral, it is easy to convince the lender to extend the loan to you.

How does a borrower qualify? Like stated before, there is NO CREDIT CHECKS, therefore the borrower is already pre-qualified for a loan at this point. However, the borrower must meet the following requirements to receive a car title loan. The borrower must be over the age of 18 years old, the borrower must be the owner of their vehicle title, they must have already paid off their vehicle liens-free, and they must have a valid driver's license or state identification card.

How long does the application process take? The simplicity and speediness of the application process is another "pro" or advantage for the car title loan. The average online application just asks basic personal questions pertaining to the borrower's vehicle, and location. The application roughly takes about a minute or less to complete. Most companies get back to the borrower within a few minutes of submitting an application. Once the loan representatives read through the borrower's application information, they quickly give the borrower a call based on the number provided in the app, and go over the details and process of obtaining a loan.

How long does it take to receive the loan? Every company depends and probably has a different loan process, but it usually takes within 24 hours or less to receive the "instant cash". That is another advantage, or "pro" of the loan industry. Traditional banks, and credit bureaus, can take up to a few weeks to finalize the loans. By that time, the borrowers would have already lost their homes, been in serious debt, etc. Taking out a car title loan is the best financial choice. Check.

The Cons of Car Title Loans
Now that we looked at the Pros, let's look at the Cons of car title loans. Honestly, no financial decision is 100% perfect. Nothing is perfect, but some things get close. If this article was based on telling the reader that the car loan industry is the best financial choice, then the article would be full of shit. That's why the title is "key-worded" "Choosing the 'RIGHT' financial service. Not the BEST. The "Right" financial service. Remember, nothing ever is perfect, especially in finances, but some things come close.

The cons of a car title loan are indeed straightforward. The borrower is basically handing the ownership of their personal transportation over to the car loan company as collateral in order to receive a cash loan. As stated before, the borrower can face extremely high interest rates- depending on the company. If you have poor to no credit because of your financial situation, and learn that you cannot pay-off the loan you will be stripped of your vehicle, and instead of being able to alleviate your debt, you will fall into even more debt. At this point, the collections agencies will be completely done with you. The saying "follow the directions, and it'll turn out right" is extremely important and accurate when obtaining a car title loan. A borrower may also be at risk of taking out a loan from a disreputable company that will charge extra fees on top of the accrued interest, or instant hidden feeds that were written in the fine print in the contracts, that are almost impossible to see, unless observed carefully with a magnified glass. Thus, a borrower must be careful before making a finalized decision in any financial situation, especially when their biggest ticket possession is being used as collateral.

Now that this article has closely examined the Pros and Cons of the car loan industry, it is up to the borrower to make the right financial decision. The final decision is the hardest part. The final step is always the hardest part because the borrower now has to make a final decision whether he or she wants to take out a car title loan or choose to use another financial recourse. Honestly, after everything stated in this article, it would seem to be that choosing a car title loan is the right financial service. Again, banks and credit bureaus take too long to process a loan, so why choose them? If the borrower is in need of fast cash, they might want to consider choosing a car title loan.

Bad Credit Auto Loans - Get to Know the Benefits

Car shoppers with a tainted credit report or inadequate finance can opt for refinancing companies. This will help them manage the payments associated with bad credit auto loans. When you pay the borrowed amount on a regular basis, it lessens the amount every month. However, getting the best loan option is not as simple as it sounds. You have to do a detailed research about the lending company, the interest rates, payment terms, and the type of car you can afford. In this article, we are going to talk about the benefits of such loans.

To be candid, managing poor credit loans is a bit tricky. That's because the amount of interest and the monthly payments are higher when you have a poor score. As far as traditional banks and lenders are concerned, they reject applications of people with a bad payment history. This does not mean that you cannot get loans at affordable rates. There are web-based used car loan agencies that are not bothered about your past payment record. On the contrary, if you have a stable monthly income and can support it with valid documents, your application will be approved no matter what your credit score is. So, let's start discussing the benefits.

You Can Repair Damaged Credit

When it comes to bad credit refinancing options, borrowers get an opportunity to repair their tarnished score. That's because when you pay the premiums on time, your credit score will automatically improve. Once the score is improved, it will not decline as long as you are making timely payments. So, subprime lenders not only help you own a car but also improve your credit report to a considerable extent. However, to improve your score, you need to continue making regular payments. This way, your financial condition will improve in the future and you will be able to opt for a more expensive vehicle.

Reduction of the Monthly Sum

This is one of the greatest benefits of auto refinancing. When you are making monthly payments and on time, the loan amount is getting reduced every month. When the amount is lessened each month, you can easily repay the remaining amount in easy monthly schemes. This way, there are no risks of repossession. You become the proud owner of a car that you have always wanted to drive. Moreover, internet-based auto loan lenders also offer other benefits like the best price, less interest rates, flexible down payment options, and excellent customer service.

Good Relationship with Lenders

When you are opting for bad credit auto loans, be a new car or a pre-owned one, you are able to establish a healthy credit relationship with the lenders. When the lender knows that you have a stable monthly income and you are sincere in making payments, there is nothing like it. The lender will start trusting you and will approve your loan applications in the future. All you need to do is furnish the right documents and abide by the terms and condition of the agreement.

Bad Credit Car Loans: Say No to the Yo-Yo

An auto loan can be one of the easiest ways to build credit. Car loans are granted more easily than other types of installment loans, with one-quarter of all auto financing going to people in the sub-prime market. But, low credit scores and lack of financial education make some people vulnerable to auto loan scams. Financial experts say that people with credit scores of 680 or lower are considered subprime.

Caught on the Bad Credit Car Loan Yo-Yo

Unscrupulous car dealers will sometimes attempt to hook unwary buyers and exhort unreasonable fees and interest rates. The way the scam goes is this: the buyer leaves with the car and a signed contract. But, since most car purchases occur on evenings or weekends, the full paperwork for the loan has not been put through. Then, the buyer gets a call: they were not approved for financing. The dealer offers a new deal, usually with a higher down payment, higher interest and terms that go up to seven years. If the buyer asks to return the car, they are threatened with high "rental fees" for the time they had it, or outrageous cleaning charges. Some dealers even threaten to have the car repossessed or to report it stolen.

Protect Yourself from Scams

The first defense is, if possible, to avoid leaving before knowing that your credit deal is a sure thing. One way to do this is to make your own deal with a bank or credit union for a car loan instead of using the dealer's lender. Or, get pre-approved for a loan before you shop for a car so that you know whether you will get the credit deal that you want. A pre-approval lets you know how much car loan you qualify for so you don't wind up looking for something that is out of your price range.

If you do decide to use the dealer's financing, make sure that you read all paperwork carefully. Do not sign anything that involves conditional terms; these can open you up to a bait and switch.

If a dealer calls you after you've left the lot and says that you need to take a more expensive finance deal, ask to see the rejection notice. Often, this demand will be enough to set things back on track. But, if you were indeed rejected, you may need to return the vehicle or agree to the new terms. Should you get a loan that does not work for you, make payments on time and work to refinance later.

And, always be prepared to make different plans. You may do better looking at a used car than a new one. Talk to credit unions and member organizations like USAA to see if you can get a better deal. Most of all, keep educated about your options so that you keep your credit clear and your finances safe.

5 Common Tips on Choosing Car Title Loans

Car title loans can be complex and at times dangerous. But if you need money and your credit history isn't the greatest, then car title loans can be a useful tool. Getting a loan of this type normally only requires that you own your car. So if an emergency happens you can leverage your car's value for a short-term loan.

The thing is, you have to keep yourself safe. Sadly the car title loans industry doesn't have the best reputation due to people trying to take advantage of the system. Before considering a car title loans ask these five questions to make sure you stay safe.

Ask About Licensing

Any business that's working in good faith is going to have their paperwork in order. Plus any company that deals in loans or credit is going to have very specific paperwork they have to keep in order. When dealing with car title loans ask about the certifications the company you're doing business with has. If they get evasive this is a huge warning sign to walk away. Any honest business isn't going to mind you checking that they're properly listed with the local regulators.

Ask For Contact Information to The Main Office

Just because you're dealing with an office in Regina doesn't mean they have their home office in the city. For all you know this could be a branch of a company that calls Halifax home. The point is this is hardly unusual. However, if a branch office seems uncomfortable with giving you an address or contact information for their parent company, they may have something to hide. Nearly every big business has a corporate contact address at their home office and car title loans are no different. If you can't get information about a main office, be skeptical.

Be Informed

Remember you're taking a loan out here and car title loans like any other loan have to be paid back. Car title loans normally have a quick payback window because they're normally sold as emergency loans. So be clear about everything. Length of the loan, interest rates, any fees, how to make payments, and so on. Any good car title loans company is going to have a list of answers to common questions, so ask away, you're not the first person to do so.

Check Reviews and Feedback

The Internet is a lovely thing. You can find just about any source of information no matter how mundane or unusual it may be. Plus it has given the customer a rather large soapbox to stand on and issue reviews. If you're thinking of doing business with a car title loans company check their reviews. If a company is good the reviews will reflect that and if the opposite is true they tend to reflect that as well. The key is some people will leave bad reviews due to their own mistakes. So you have to learn how to tell what's honest criticism and people just ranting because they are mad. However, legitimate complaints are often easy to spot.

Check The Better Business Bureau

A lot of companies live and die by their Better Business Bureau rating and proudly display them on their front door. A car title loans company is no different. While angry customer reviews are one thing, the BBB nominally fields complaints about issues that goes beyond simple bad business. Plus their ratings are a little more involved than an Internet review forum. Check the history, accreditation, and complaint history of a car title loans company before doing business with them. If anything jumps out at you avoid them.