Our experience
If you're someone who is credit-challenged you may be wondering why it's so hard finding a lender on your own.
We can understand the frustration, we've been helping consumers in this situation. We even created a website so car shoppers with less than perfect credit can study such topics as repossession as well as today's subject.
It all comes down to credit scores
For car shoppers with fair to good credit – which usually means a FICO score of at least 640 or more – checking the interest rates online with banks, credit unions and even captive finance companies like Ford Motor Credit is usually the best way to find the lender with the lowest rate.
But if your credit scores fall below 640 or you have a limited credit history and no co-signer with good credit, the issue of finding a lender that is able to approve you can be more difficult.
Subprime auto lenders
Right now there are at least 30 national or regional lenders that cater to higher-risk car loan applicants and their lending requirements can vary widely.
The biggest hurdle for car buyers with poor credit, however, is that nearly all these companies are indirect lenders. To receive a credit decision from one of them, you'll have to submit an application through one of the franchised new car dealers they are affiliated with (most of these lenders don't work with independent used car lots).
Searching for a dealer
You can begin your search by calling around to the various new car dealers in your area, but in most cases you'll be instructed to stop by and fill out an application in person. You may get lucky (remember, this is often a shot in the dark) and receive an approval. If you don't, however, it can end up being embarrassing as well as a total waste of your time.
But there is another option.
Thousands of applicants every year find that the easiest and least stressful way to locate one of these dealers that is to go online and submit an auto application through a web site that caters to credit-challenged consumers such as ours that can be found at www.indianapolisautolending.com
There you'll find a resource section that will walk you through both the screening as well as the application process.
It all starts here
That's because at indianapolisautolending.com we understand a broad range of credit issues of the applicants.
So if you're ready to establish your car credit, you can begin now by filling out our online car loans application.
Before you cosign for any loan, but especially one in which the borrower is credit-challenged, you should know what your liabilities could be. We are familiar with what these responsibilities are because for over a decade here at Auto Credit Express we've been helping applicants with bad credit find an auto dealer that can help them get financed. Our website is even designed so that consumers can read about issues such as repossession and tote the note dealers, as well as today's topic, cosigning poor credit car loans. The need for a co-borrower Not all applicants are able to establish car credit on their own. In many cases someone else with established good credit is needed so they can qualify for an auto loan. An additional person can be added to the finance contract typically in one of two ways: either as a co-signer, or as a co-buyer. Although the wording is different, there are similarities between the two: 1. Both a co-signer and co-buyer are considered co-borrowers and are equally responsible for a loan. If the primary borrower is unable to meet the loan obligations, than either the co-signer or the co-buyer is required to make the loan payments. 2. Both types of co-borrowers are signatories on the loan. This means that in addition to the primary borrower, their names appear on the loan contract and both are required to sign the loan documents. 3. In addition to the primary borrower, both co-signers and co-buyers can be subject to collection action, up to and including wage garnishment, if the loan goes into default. 4. During the application process, the lender will review the credit reports of both types of co-applicants and take their credit information into consideration. Co-borrower differences While the credit backgrounds of both co-applicants types are considered, lenders view their incomes differently. In fact, lenders classify the co-borrower as either a co-signer or a co-buyer depending upon how their income relates to that of the primary borrower. Co-buyer – A co-buyer's income can be added to (co-mingled with) an applicant's income in order to meet the lender's income requirements. The combined income of both is used to qualify for a loan. This means that a co-buyer is typically either the husband or wife of an applicant. Co-signer – While this person's creditworthiness is used to meet the lender's credit requirements, their income will not be added to that of the borrower's in order to meet income requirements. This means that the income of the primary borrower as well as that of the co-signer each must qualify, individually, for the lender's income requirements. Other co-borrower qualifications Typically, it's easier for someone to qualify as either type of co-applicant if they are related to the primary borrower. In most cases, wives and husbands are recognized and treated by lenders as co-buyers on a loan. Fathers, mothers, sisters, brothers, grandmothers, grandfathers as well as sons and daughters who are co-applicants are typically considered to be co-signers, since their incomes usually cannot be co-mingled with that of the primary borrower. The Bottom Line Before co-signing for an auto loan, be sure you know exactly what you're agreeing to – which includes the possibility of making the loan payments yourself if the primary borrower fails to do so. Co-signing on someone else's loan is a big commitment. Before you agree to it, you need to weigh the pros of helping someone get a loan they might need against the cons of possibly getting stuck paying for debt you didn't incur. It's a tough decision, and one that shouldn't be made lightly. Our Website Indianapolis Auto Lending can give you all the information you need. Fill out our easy credit pre-approval Here. |
| A good extended warranty can give you peace of mind but be on the lookout for phone and internet scams that can be a waste of money when financing with bad credit car loans. Once you receive your approved auto loans you may be contacted by a number of fraudulent phone centers representing themselves as warranty companies. We've heard of this happening because for the past years we've been helping applicants with poor car credit with the help of our bad credit auto sales department. Buying used cars Because they're more affordable, most bad credit buyers choose to finance a used car. Buying a two or three-year old vehicle helps avoid the 15 to 40 percent depreciation that usually happens during these years. But even though used car quality is very good, we typically will recommend also buying a service contract – sometimes called an extended warranty – to cover the entire length of a bad credit auto loan. There are many reasons for buying one especially if you're on a tight budget and have bad credit. The most important, however, is that it may help you avoid big, unforeseen car expenses – one of the biggest reasons a bad credit car loan can end in repossession. But we also encourage buyers to purchase one from the selling dealer and for a number of reasons. Used car extended warranty scams scenario: As soon as you buy a car (even if it's already covered by a new car warranty or service contract), you might be swamped with letters, phone calls and maybe even emails from companies that want to sell you a vehicle service contract. Many will do just about anything to sign you up. Companies usually get this information by buying lists that contain the names of car buyers who have recently purchased of a new or used car. The lists are then given to telemarketers who call these people in order to sell them a service contract. During some sales pitches, consumers have been told that: • Their warranty is getting ready to expire, when that isn't true Consumer rights If you're contacted by one of these companies, request a name, address and phone number. Then, before you do anything, contact your Better Business Bureau as well as your state's Consumer Affairs department to check if the company is licensed to do business there to be sure it's legitimate. If the number called is registered with the Federal Do Not Call List, the company shouldn't be contacting you in the first place. Our take By buying a service contract from the selling dealer, if you have any issues you'll know who to contact. Licensed dealers must adhere to your state's consumer protection laws, which is not always the case with an anonymous out-of-state warranty company. You should also shop around before you buy from anyone to make sure the service contract is priced fairly. So if you're ready to begin rebuilding your auto credit, you can start now by filling out our online3 easy steps auto loans application. |
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When buying a used vehicle, the National Motor Vehicle Title Information System (NMVTIS) can help you avoid purchasing a vehicle listed as salvaged, There isn't a single subprime auto lender out there that will finance a vehicle with a branded title. We know this is true because we've been helping credit-challenged applicants find a car they need. Clean car titles Most used cars in Indiana have a clean title. Even if it was in an accident, this will be the case just as long as the damage wasn't extensive enough to declare it a total loss. This means that even with a clean title you still have to be careful and request a vehicle history report as well as have the car inspected, since there could be hidden damage. But if a car has been in an accident or another situation with enough damage to declare it a total loss, once repaired i''s issued a "branded title". What's a "branded title car"? Title brands vary by state but usually include the following: Rebuilt – A vehicle previously branded as "salvage" that has been repaired and inspected. These vehicles might be drivable, but a rebuilt title means it was, at one time, a salvage vehicle. You cannot finance a car with a rebuilt title brand with no credit auto loans. Salvage – A vehicle with damage that would typically cost between 75% and 100% of its value to be repaired. In some states, there is no rebuilt brand and salvage vehicles that have been repaired still carry a salvage brand. Bad credit lenders will not finance salvage branded vehicles. Junk – a vehicle that can only be sold for scrap or used for parts Flood Damaged – A vehicle that has been water damaged. In some states a flood damaged vehicle might also carry the salvage or rebuilt brands. Vehicles carrying a flood damaged title cannot be financed with a problem credit auto loan. Fleet – Although typically not a brand, most states require any vehicle used as a taxi, a daily rental or for police use be designated as a fleet vehicle. Subprime auto lenders will not finance fleet vehicles. Mileage unknown – Mileage unknown is not a brand, but most states require that the title be notated if vehicle mileage is unknown due to odometer replacement or other issues. Bad credit lenders will not finance these vehicles. Stolen – Like fleet, a stolen vehicle is usually not a brand, although many states may refuse to title a recovered stolen vehicle. Due to the damage they sustain, many of these vehicles are branded so that they cannot be re-sold. Branded titles can be either the same color or a different color than a clean title. However, both will have a notation either at the top or the bottom setting them apart from a clean title. Title washing During the practice of "title washing," the branded information falls off in the process of re-titling a vehicle in another state resulting in a clean title. In just about every case, checking the National Motor Vehicle Title Information System database, requesting a vehicle history report and having a car inspection performed will reveal the fact that a car has had its title "washed." Failure to do this can be a problem because many state DMVs now run title applications through the national VIN database before issuing the new owner (you) a title, making it difficult to both license and insure this type of vehicle. As we see it Your best chance to avoid buying a previously damaged vehicle is to run a vehicle history report, have it thoroughly inspected by a certified master mechanic and run its VIN number through the national database prior to signing any paperwork. You should also know that at Indianapolisautolending.com can offer you the best chance approval for bad or no credit auto loans. So if you're ready to move forward in improving your car credit, you can begin now by filling out our online car loans bad credit application. |
