Poor Credit Car Loan: Drive Your Car – Deflect Your Credit Score
Time is the most precious thing in today’s life. Each and every moment is valuable to us. Saving time can be considered as our main priority. And for that, car is no more a luxury but it has been turned into our daily necessity. No doubt, it is rather easy for a car owner to manage his time. You may also think of buying a new car, but hesitate to apply for a car loan due to your poor credit score. Forget this hesitation now and apply for a poor credit car loan.
Poor Credit Car Loans are specially made for the borrowers who have poor credit score. They could be:
o Borrowers who have defaulted to repay pay their amount.
o Borrowers who are suffering from arrears.
o County Court Judgment (CCJ’s)
o Borrowers who have filed bankruptcy
o IVA’s
o Late Payment.
Mainly credit score is the fiscal estimation of the borrower’s credit value. It is considered poor when it becomes 580 or below it. Generally, a credit score is calculated in the following perspective:
o Payment history (35%)
o Amounts due (30%)
o Extent of the credit history (15%)
o New Credit (10%)
o The type of the used credit (10%)
A borrower can take help of different credit bureaus to calculate his credit score. Remember, on the basis of your credit score, the borrowed amount and loan period will be decided.
However, poor credit car loans are available both in secured and unsecured form. For availing poor credit car loans in secured way, a borrower has to pledge some security against the loan amount. Contrary, unsecured loans are obtainable without any security. Normally, poor credit car loans are short term basis loans. And the interest rate is relatively high due to poor credit score. But some down payment will ensure borrowers to get some relaxation in case of deciding the interest rate. The term period of these loans varies from 2-5 years. This term period can be extended but it financially won’t be much beneficial.
Nevertheless, before applying for a poor credit car loan judge the following things:
o First decide what type of car you are going to purchase: new or used car
o Then estimate your financial requirement
o And also decide which option you want to choose- secured poor credit car loan or unsecured poor credit car loan.
Poor credit score- this term acts as a roadblock in the way of availing loan. Now it is the time to wreck the roadblock under the wheels of your new car with poor credit car loans.
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vidalconsulting said on July 16, 2010
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isis said on July 21, 2010
There is next to nothing available to you until you get your credit report fixed up and establish some new trade lines. Anyone willing to lend to you with a 490 score will likely require 25-40% down payment, and still charge you double-digit rates.
Most of the time, when you file bankruptcy, your credit report doesn't show things accurately. You likely still look like you have collections and charge-offs that still have balances. Get your free credit report at annualcreditreport.com, and dispute anything and everything you see that's remotely inaccurate. Just getting the collections to a zero balance, account included in bankruptcy, should boost your scores 20-50 points.
Most mortgage companies will want to see that you're back on track and have new accounts that are paid on time. You will almost definitely need 12 months of cancelled rent checks to show you paid on time. That by itself may be enough to get you a loan, but usually they want to see 12 months of payments on 3 different accounts, like a credit card or car loan or something.
Find a good loan officer in your area who is willing to work with you for a long time. Someone who can walk you through your credit repair, and get you into position to get a decent loan.
After 2 years from a BK being discharged, you are eligible for FHA financing. 3% down (which can come from a gift or many other places) and you get market rates (6-6.5% right now). That's the deal you need someone to help you get. The right loan officer will work with you to get it, and not stick you in something next month at 10% with a huge pre-payment penalty that you're stuck with for 2-3 years. You are only a couple months away from being potentially eligible for market rates.
If either one of you is eligible for a Veteran's Administration-backed loan (VA), that would allow you 100% financing at market rates too, after your two years has passed. VA is very lenient.
sfwatkins72 said on July 25, 2010
CCJs or County Court Judgment: – Enjoy debt free life: Good credit score is a matter of prestige and honor. It enh…
Rebecca said on July 25, 2010
Depends on the Judge, their work docket and how far down you default is in the stack on his/her desk.
Jeff T said on August 2, 2010
Yes, getting a credit card, using it and paying in full every month will help improve your score. You may have to get a secured card — you pay a deposit which is held as collateral against the line of credit. In about a year, you should be able to convert the secured card to a regular account.
You will need at least 24 months of consistent, on time payment history to improve your score.
Marian Martins said on August 3, 2010
You must be joking. You cannot get a $75,000 mortgage on a house with less than excellent credit these days. You need to keep up with the news better.
No personal or signature loans. No loans without collateral. No loans without sufficient income and assets. No loans without excellent credit – in most cases about 700 or better.
Credit card credit limits are being reduced and credit lines cancelled outright. Even "approved" mortgages are hitting "last minute hitches" and not being funded by closing if the down payment is low. There is no money! No credit. You have to earn it, save up, pay off loans and other debts. No other alternatives.