How To Avoid A Rejected Car Loan

Filed under Loans

When attempting to obtain car financing, it is important to check your credit score first. Borrowing money for car loans can be difficult if you do not have the minimum credit score necessary to obtain the loan. It can be a great disappointment to be rejected for a car loan because your credit score was just below the minimum credit score.

Proper Preparation Is Key

Success in obtaining the car loan depends on the steps you take to avoid a rejected car loan. Gain access to your yearly free credit report before shopping for a new car. The credit report will have all the necessary information to determine if you qualify for car financing. If the credit rating is in good to excellent standing, a car loan rejection is unlikely. People who have a credit rating below 630 may themselves automatically disqualified from borrowing money through traditional bank loans.

Get Your Credit Score Higher

If your credit score is below the 630 points target, it is time to work on repairing the credit rating in order to obtain a car loan. The first necessary step is to pay off all old debts that may be outstanding. The credit rating will not sky rocket because the debts are paid off, but it will help increase the credit score to the higher level that it needs to be to obtain a loan.

Errors are sometimes made on credit reports. If there is incorrect information on the credit report, it is essential to contact the reporting agency through the dispute center. There are three reporting agencies; therefore, it is necessary to contact all agencies if the error is on all three reports. The agencies will make contact with the company who reported the information to settle the dispute.

The change in the credit report should appear within a month, shortly after the dispute has gone in your favor. Companies must have your permission to run a hard inquiry. If someone ran a hard inquiry on your credit report, dispute it as soon as possible. Never give permission to anyone to run a credit report if it is uncertain whether you will be rejected for the loan. If you are rejected for the loan based on the credit report, it will have a negative impact on your credit and can remain there for the two year period. Guard your credit report as though your life depended on it.

Tags: Car Vehicle Title Loans

Car Title Collateral Loans Information

Filed under Collateral Loans

A car title is a legally binding document that determines you are the owner of a vehicle. The Department of Motor Vehicles (DMV) issues one for every vehicle. When you buy a car, from a dealership or private seller, the title is put in the name of whoever is paying for the car. If you finance your vehicle, then the bank’s name will be on the title until you have repaid the loan. Once that is done, the title is put in your name. This is a ‘clear title’ with no liens (loans) against it. If you are selling a car that still has loan payments, then you might not qualify for title collateral loans. Learn the process on how to start using your car as collateral.

Collateral Loans on Vehicles

When buying a car with collateral, you can use a clear title as collateral for a personal loan. Loan companies will accept a clean car title as collateral for any loans you might need. Collateral is an asset or assets promised as security for a loan. Title loans are usually fairly easy to obtain. There are usually title loan shops in any city or you can go on the Internet and find companies in your area that will allow you to apply for title loans online and then they will send a representative to you to assess your cars value.

Many title loan businesses don’t check your credit and can usually get you a check in less than an hour.

Some companies require full insurance coverage while others don’t deem it terribly important. It is always a good idea to have insurance on your vehicle, most states require it by law.

Some of the documents you will need for a car title collateral loan are:

Clear title to the car.
Car registration and insurance card.
Current utility bill.
Bank statement.
Pay stub.

You may also be asked for:

References from family and friends
Spare key.

Car title loans are usually for about 50% of the value of the car, as ascertained by the loan company.

Read the fine print very carefully; interest rates can vary from 36%APR to 300%APR or more.

Car title loans are typically for 30 days. If you haven’t repaid the loan by then, you may be able to roll into another 30 day contract. However, borrower: beware. If you can’t pay in 30 days, the car title loan company can legally take your car.