CV Cluster

Rebuilding your credit score

Lots of people suffered hardships through the financial meltdown that happened in 2008 and 2009, but that’s mostly over with, and it’s time to get back on track with your credit. There are plenty of car outlets that would like to sell you a car, so if you need one, now is a good time to go car hunting. But before you head out the door, you should do a few things to get started.

You Should Check Your Own Credit With a Free Credit Check

There are several companies that offer these free credit checks, and you don’t need to sign up for a yearly plan, but you should check your own credit at least once per year and know exactly what’s on it. If there is something you don’t recognize, take action, find out what it is, where it came from and why it’s there. If it’s an error, start writing letters to get it fixed, don’t let up, be persistent.

If you don’t belong to a Credit Union, find out what’s available to you and join at least one or two. They usually offer the best rates, easy terms, and have lower qualifications than most car lot loan companies. In almost all areas, there are Credit Unions available to certain groups of people based on employment, military service, retired people, and even geographic area. Get payroll deduction if it’s offered.

If You’re In a Rebuilding Stage With Your Credit, A Car Loan Is Excellent Credit

Some mortgages only report occasionally to the credit bureaus, and some only when you’re late. consumer loans, on the other hand, usually are really good at reporting monthly, and if you can get payroll deduction where you work, you’ll never be late, ever. That’s a huge advantage when you’re wanting to get more credit and a higher credit score.

You’re also more likely to get accepted for a loan if you have several years on the job, and they can see that you’ve already put payroll deduction in place for savings. Then all they need to do is deduct your car payments from your savings account and you’re all set.



Regular Consumer Retail Car Loans Are Still Good For Your Credit

Since they’re loaning money on a car, that is the that they’re counting on if you are unable to pay back the loan. As long as the balance on the loan isn’t higher than the current value of the car, they’re covered. If you stop paying, they’ll come get your car. While that is both good and bad, you’re more likely to get a car loan than you are a home loan because they’re so easy to repossess.

These types of car loans are not only easier to get, but they report to the credit bureaus on a regular basis as well. If you really have your goal set on getting a home mortgage, buying and paying for a car in installments is a very good way to improve your credit rating.

Once you’ve paid on a car loan for a year or so, you’re in prime position to try for a home mortgage. Keep checking your credit and always pay on time, or just a little early, to keep your credit as perfect as you can.





How to Get a Bad Credit Car Loan

From youthful inexperience, sudden unemployment to bad financial advice, countless reasons can cause a person needing a bad credit car loan. While poor credit history isn’t always the fault of your work ethic or character, the sad reality is that creditors and lenders are always going to judge you based on how your credit history appears to be. You’re probably well aware by now that getting a car loan with a bad credit history can be a nightmare. You’re probably here because you need all the help you can get to secure bad credit car loans. You’ll be glad to know that, we are going to provide you with just that here.

Many people desperately need to get a personal vehicle even with a poor credit rating. It maybe because taking the public transport can no longer be an option or maybe their jobs require the use of a personal vehicle. Either way, if you find yourself needing a bad credit car loan, our handy guide to secure one will help you immensely. Give yourself the best chance to understand, find, and manage the process of getting a bad credit car loan that you desperately need.

How to Shop for Second Chance Finance

Here’s what you need to do before going to a dealership.

#1: Decide on your exact vehicle needs.

Since you’re already in a clinch, don’t pay higher APR with a bad credit car loan for an automobile that isn’t what you need. Determine what your exact personal transportation needs are before heading to the dealership. If you don’t absolutely require some features of a car, don’t choose that car because it will add to the payments. If you need to carry more people or goods, don’t go for a smaller car. Factor in things like gas mileage expected maintenance, and total daily commute too.

#2: Fix a budget.

Fixing a budget before making any large purchases involving long-term monthly payments should be high-priority on your agenda. Make sure you don’t overpay by researching about the actual cost of your vehicle. Also remember that while longer contracts might seem to require lower monthly costs, you’ll be paying more due to interest.

#3: Know your credit report.

Never walk into a dealership without knowing what your credit report says. Regularly monitor your credit report before applying for a bad credit car loan. You’re entitled to a free copy of credit report from all three major credit bureaus. Get it directly from the website.
Here’s what you need to keep in mind while making the purchase.

#4: Don’t deviate from your price range

You must not be swayed by the temptation to add anything extra than you originally planned. With the high-interest rates of a bad credit car loan, it can add up to cost you a lot in the long run.

#5: Do negotiate.

Anything you can save on purchase price currently will end up saving a lot for you in the future. Try to negotiate a car that is out of your range into your range. If it is already in your range, try to lower the price based on your research.

#6: Be wary of add-on products and services.

Don’t agree to add the cost of any add-on products and services without making sure they fit into your budget. Anything you add after the bad credit car loan has been confirmed will amount to a lot of money in the future.

#7: Ask questions about the contract.

Do your research and never be afraid to ask questions if you don’t understand anything. Don’t agree on something without knowing what it is.
Your work isn’t over even after you make the purchase. Here’s what you need to do.

#8: Store a copy of your contract.

Remember to keep a copy of the car loan agreement with all signs and details filled in. Keep it in a safe place so that you can refer to it whenever required.

#9: Never miss a payment.

Missing a payment on a bad credit car loan is the worst thing you could do to your credibility. Set up an automatic payment to make sure you never miss out. If possible, try to pay more than the minimum amount whenever possible. It will reduce your total interest in the long run.

#10: Do Not Apply Online

Not all Lenders are equal. Every lender has their own guidlines they have to check off to approve your car loan. It’s better to speak to a Car Finance Broker as they will know which lender would most likely approve your application based on your circumstances