Convince Subprime Lenders: Get Auto Loan Approval easily

Buying a new car is a big and exciting experience. Sadly, for Americans with credit issues, the happy experience can turn into a nightmare. Constant auto loan rejections and exorbitant interest rates can affect your morale and keep you away from buying a car. If your credit score is not optimal, avoid a traditional lender such as a bank or a credit union and seek the help of a subprime lender. 

Subprime lending companies are those financial institutions that help car buyers with less-than-perfect credit history. If you have a bad credit score or have a history of repossession and bankruptcy, it is best to work with subprime lenders. They have relaxed lending criteria and do not expect you to have a stellar credit score. You can get a subprime auto loan even when your credit score is close to 500. So, does that mean anyone can get an auto loan from a subprime lender? Is it easy to convince them?

What are the Common Red Flags for Subprime Lenders? 

1. The Income Issues

When it comes to reporting their incomes, car buyers often make the mistake of mentioning their net monthly income. Subprime lenders are interested in knowing your gross monthly income. It is the income that you earn before taxes and deductions. It includes your total income before taxes, Medicare, FICA, etc. Lenders require you to earn at least $2000 as gross monthly income. And, if you report your net monthly income, it may not pass the lender’s stipulation. So, make sure that you mention your gross monthly income. 

Another red flag for a subprime lender is low income. If your income is insufficient to make regular payments, lenders will reject your loan application. So, do not under-report your income to the IRS. You can get an auto loan with multiple part-time jobs. Although make sure that you calculate your total income by including cash and non-cash tips. Another way of convincing a subprime lender is to have a co-applicant who can strengthen your loan application. 

2. History of Late Payments

 

Subprime lenders are wary of car loan applicants who have a steady history of late payments. If you have a few episodes of late payments due to unfavorable instances such as job loss, accident or prolonged illness, lenders can cut you some slack. But, if you have a habit of missing out on a few payments and your credit report includes repossession, getting approval for a subprime auto loan can get difficult. 

The solution is to manifest yourself as a responsible applicant. Clear your credit score of errors. Pay off a few debts before applying for a car loan. Making a hefty down payment will convince the lender of your financial condition and help you gain approval even with late payments in the past. You can also convince the lender by promising to set up automatic/recurring payments for the auto loan. 

3. Inadequate Job History

Stable job history is one of the prerequisites for obtaining low-interest rates. But, if you are new to the job, it can become a red flag for subprime lenders. They understand the need for changing a job to avail better opportunities. But, if you have been moving from one job to another in a quick succession of time, the lender may feel that you are not serious about your career. And without stable employment, you will be facing a situation of repossession in the near future. 

Lenders require at least two years of continuous employment history. If you have changed the job in the same industry, it won’t be a problem. But, if you are constantly switching careers, approval can get difficult. In such situations, obtain recommendations from your past and current employers. You can even apply with a cosigner to reduce the risk. Spend time in choosing the right cosigner with a good credit score and stable financial history. 

Work with Reputed Subprime Lenders for Affordable Car Buying

Just because your credit history is not impeccable, it doesn’t mean you need to shoulder the burden of high-interest rates. Tackle the possible red flags and strengthen your loan application. Once you have reduced the risk factor associated with your financial habits, convincing a reputed subprime lender will become a piece of cake. Understand the loan terms offered to you and say yes only when you have done your homework. 

Remember bad credit history is your past. Do not make a hasty car buying decision and make it your future as well. 

Bad credit history doesn’t have to lead to a disastrous car buying experience. Apply with America’s reputed subprime car lenders and obtain quick approval. Guaranteed auto loan approval can be yours at the click of a mouse.

How to Work around Down Payment while getting Auto Loans?

People buy a new car with the help of an auto loan. There are more than a few steps that you have to follow in order to obtain auto loan approval. You need to find a lender who offers an interest rate comfortable enough for you. Also, you must look at the down payment amount, if any, and see if it is within your capacity. Auto loans usually come with a single down payment, followed by smaller monthly payments. 

You also need to decide whether to opt for down payment or balloon payment as the method for payment. 

Down Payment or Balloon Payment

Down payment is the initial sum of money you pay to the dealer. It is a sizable part of your payment. It is preferred by the lender because it lessens the burden of making the payment later. It is a very good option if you have the money ready. 

Balloon payment is the opposite of down payment. By opting for balloon payment, you can pay a considerable sum at the end of the loan term. Doing either of these things reduces the amount of your monthly payments.

No Down Payment Auto Loan Program

You can also get a no down payment auto loan program. If your credit history is healthy, and you have a steady income, you will be able to get a loan where no down payment is necessary. Use the internet to find such deals in your area of residence.

How to Lower the Down Payment Amount? 

1. Selecting a car

One of the best methods of ensuring the least amount of down payment is selecting a reasonably priced car. Especially look at sturdy used cars instead of brand new ones. 

2. Employment 

It is important to note that if you hold a job with a steady income, getting approval on a no down payment auto loan program will be easier. If you have no credit history or a bad credit score, you can research on how to improve it before applying for the loan. An application built on a balanced credit history is more likely to be accepted. 

3. Co-signer

If you are a teenager or a college student buying your first car, your application can benefit with a co-signer. A co-signer is generally a parent or a close family member who can guarantee, on your behalf, that the loan will be repaid. 

4. Trade-in

Trading in your old car for a new one is another kind of down payment, which is in kind rather than cash. It is ideal if you do not have cash for down payment. 

When it comes to auto loans, the concept of down payment is flexible. You can change the down payment amount according to your convenience. Also, it can be eliminated with the help of a no down payment auto loan program. Like always, brush up on how down payment works before applying for an auto loan and you won’t have any trouble with it. 

CarDestination.com allows you to work around down payment. Apply for no down payment auto loans and obtain easy auto loan approval without spending money. You can also get in touch with the company if you want an auto loan without cosigner.

No Down Payment Auto Loans for Washingtonian Car Buyers

 

After thorough research, you have chosen your favorite car. You are ready to buy the car, but have you thought about making down payment? 

Is making Down Payment Compulsory while buying a Car in Washington? 

It is not compulsory but it is advisable to make down payment of at least 20% of the new car’s value. Experts suggest making down payment because of the following reasons: 

1. It will help you in obtaining Washington auto loan at favorable terms.

2. It will make your monthly payments affordable.

3. It will decrease the chances of finding yourself in an “upside down” auto loan situation. 

How to buy a Car without making Down Payment?

New cars are getting costlier with each passing day. An average new car costs $33,560in Washington. And, 20% of the new car price is $6712. It is difficult for a Washingtonian car buyer, with an average gross monthly income of $5114, to pay such a large amount to the dealer. 

Instead of spending such a large amount on down payment, you can opt for no down payment auto loan program in Washington. In such a loan program, the down payment amount that a car buyer normally pays is structured into the loan. 

The benefit of a no down payment auto loan is that you no longer have to obtain expensive personal loans for making down payment. 

What is the Need for No Down Payment Auto Loans in Washington? 

Washington is considered one of the richest states of America. The state’s average household income is $61,366. It is higher than the national average household income by $7,709. It means Washingtonians earn more in comparison to people of other states. So, why do they need no down payment auto loans? 

1. Washingtonians do not have liquid assets to make down payment.

2. Many car buyers do not have a car to trade-in.

3. Manufacturer incentives are not adequate for making down payment. 

Are No Down Payment Auto Loans Easily Available in Washington? 

There are many online auto financing companies that provide no down payment auto loans in the Washington state. To obtain a loan from them, you have to submit your loan requirements and provide information about your credit history. 

You can finish your loan process quickly by submitting the application online. It means you can buy a car without leaving the comfort of your home. Doesn’t it sound comforting? So, do not spend time in visiting banks with stringent lending criteria. Instead, apply with an online auto financing company and obtain instant approval on no down payment auto loans in Washington. 

Car Destination is the perfect auto financing destination for every Washingtonian car buyer. It can help you if you are looking for Seattle bad credit auto loans. Submit your loan requirements and put an end to your loan worries.

No Money Down Auto Loans bring an end to misery of Bad Credit Car Buyers

Buying a car without down payment is a task for a brave bad credit borrower! Auto buying process can be stressful, especially when it comes to the 'devilish' down payment. Do not lose sleep over down payment amount because you can avoid it. When you don't have sufficient money or do not want to make down payment, you can opt for no money down auto loan program.

Work on Things that can be controlled

When you are applying for bad credit no down payment car loan program, do not worry about bad credit. Many Americans with bad credit history buy their favorite car without down payment. How do these people manage it? They focus on their strong factors and do not take tension of bad credit.

Most car loan experts will suggest you to improve your credit score. But, it is not possible to improve it overnight. Also, convincing a co-signer is extremely difficult. Here are few things that are possible and can improve your approval chances.

Pay-slips/Tax Details

Because of the competitive auto financing world, lenders are willing to ignore your troubled credit history. They are ready to make peace with your past if you earn a satisfactory income today. You can provide a copy of your current pay-slips. If you are self-employed, your tax details will work for you.

Employment Verification Letter

Only income is not important. What matters is a REGULAR income. Lenders are interested in your job because it guarantees regular monthly payments. So, ask your employer to write an Employment Verification Letter. A self-employed car buyer can produce his business details for the same.

Lower Debt To Income (DTI) Ratio

Along with job and income, lenders want to know about your debt. It will help them in ascertaining the situation in a better light. Your DTI ratio will show the lender whether you will be able to manage additional debt. For this keep this number on the lower side. Pay off few debts to improve your DTI ratio.

Trade-in

There are many alternatives for lowering your loan amounts, other than down-payment. You can achieve this goal by using your old car. If there are no liens on the car, give it to the dealer. The dealer will establish the value of the vehicle and deduct the same amount from the total cost of a new car. Thus, you will be able to make down payment without paying a single penny out of your pocket.

Applying for No Money Down Auto Loans? Apply for Gap Insurance as well

Remember to buy gap insurance. It will be helpful when your car suffers the total loss. When a car is written off, depreciation lowers its value. And, you will owe more money than you will receive after selling the car.

When you make down payment, you pay for depreciation. But, without a down payment, there will be a huge gap between the car's value and the amount owed. Gap insurance will pay for the difference between the two.

So, these are the ways in which you can get the best deal on no money down auto loans with bad credit. Do not worry about your bad credit score. Work on the factors mentioned in this loan guide, and you will get the car of your dreams.

Car Destination is your destination for getting no money down auto loan at affordable rates. The Austin based bad credit auto financing company has experience of providing loan options to bad credit buyers across America. So, apply without apprehension.

All the best for your car with no down payment at all!

4 Right Reasons to fall in love with Bad Credit No Money Down Auto Loans

Lisa was desperately seeking an auto loan, but her terrible score and financial inability to make a down payment were making matters worse. She took matters in her own hand and decided to improve her credit score. That’s where she went wrong.

Henry was in the same boat as Lisa’s. He decided to use all his savings for a down payment. He thought of applying for a title loan on his wife’s car. Even, he is headed for in the wrong direction.

If you are a prospective buyer in the automobile market and facing the same problems, you need to stop. Stop thinking about unrealistic measures! Stop thinking about putting your financials in jeopardy! Just STOP!

Don’t go looking for alternatives that won’t work. You cannot improve credit score in a day. And, the interest rates on title loans can be sky-rocketing. Do not worry if you are in the soup. Car Destination brings to you an affordable alternative, and it is called Bad Credit No Money Down Auto Loans.

This auto financing program is specially designed for bad credit car buyers who cannot make a down payment or are unwilling to do so. This program is slightly expensive because it gives you the essential benefit of avoiding the down payment amount. Are you not convinced? Go through the 4 explanations to understand why paying bit higher monthly payments are cheaper than making down payment.

Right Reasons to apply for Bad Credit No Money Down Auto Loans

1) No Unnecessary Manifestation of Financial Capabilities

Car buyers with credit problems are required to make a down payment. This way the lender comes to know about his/her financial capacity. But, Car Destination doesn’t require you to make a down payment. It believes that your regular income can provide a better picture of your current economic standing. So, there is no need to break your back for putting money down.

2) No Extra Dealer’s Profit

When a dealer comes to know that a buyer is interested in making down payment, he purposefully marks up the price of the car to earn profit (from the down payment). He, then, directs some part of the down payment towards the loan amount. And, the remaining goes straight into the dealer’s pocket. Thus, there is no point in making down payment because there is no major reduction in your loan amount. So, avoid putting money down with bad credit no money down car loan program.

3) Car Buying made possible despite Bad Credit History

Most traditional lenders and banks want a perfect risk-free auto loan application. They do not want someone with bad credit history. Add to it, the situation of zero down payment and they reject the loan request straight away. But, thanks to unconventional programs like bad credit no money down auto loans, you get the perfect opportunity of buying your favorite car.

4) An Opportunity to make your Score better

Most bad credit buyers make irregular payments because they are not able to make ends meet. But, with this auto financing program, you don’t have put money down. And, as you don’t have to part with your savings, you can use it to make regular monthly payments.

Don’t you think bad credit no down auto loan program is better than opting for alternatives as improving your credit score and title loans? Don’t make mistakes like Lisa and Henry because these mistakes will become sins for your financials.

Make a wise decision by choosing Car Destination for your next auto loan. The company has been making auto financing affordable for its customers since long. Join the huge group of satisfied customers by applying for bad credit no money down auto loan program.