Posts tagged ‘Loan Modification’

Subprime Auto Loans

A subprime auto loan is a kind of auto loan provided to borrowers with low credit scores. While providing auto loans lenders generally look for borrowers with high credit scores. But sometimes loans are also provided to borrowers with low or bad credit scores. This is when subprime auto loans come into picture.

It is possible for a borrower, who earlier had bad record to get approved for auto loan through subprime lending. These borrowers belong to the risk category and most of the lenders are unwilling to provide them loans. These borrowers are termed risky because of high outstanding debt, earlier defaults in loan payments, bankruptcy or non-existent debt history. Since the number of borrowers in the risk category has increased lenders of subprime auto loans have begun flourishing.

Subprime auto loans have high annual percentage rate or APR because of the risk factor involved. This is done to offset the risk that these borrowers carry and the lender feels more confident to provide the loan. Anyhow, subprime auto loan can be used to generate favorable credit score by making timely payments. And once borrowers have improved their credit score they can go for conventional loans with lower interest rate.

Auto loan modification can also be used to improve your credit score. Here, auto loan modification specialists negotiate with lenders on behalf of borrower to lower the interest rate on the existing loan and reduce the monthly car payments. This directly helps you improve your credit score since the borrower will be able to make timely car payments on his loan.

Ways to Save Money on Auto Loan

An auto loan is a blessing for those who dream of owning a car and makes them drive their dream. Various kinds of auto loans have helped so many individuals turn their dream into reality. But unfortunately some auto finance companies are taking undue advantage of customers in the name of auto loans.

These companies target inexperienced buyers or the ones who are careless to go through a loan agreement. Most of them are borrowers who are in a hurry to get an auto loan, because they are suffering from bad credit or do not have any pre-established credit score. In this process they end up getting higher interest rate on the deal. The ultimate outcome of such auto loans with high interest rate is repossession of the purchased vehicle.

Customers should be very careful while taking auto loans from auto finance companies and see to it that they go through all the details provided in the agreement. Also customers should purchase a car that has an optimum cost with respect to their salary. They should carefully analyze if it is possible to pay back the loan in the specified time period with the specified interest rates.

There is a saying old is gold and this holds true even for auto loans. Companies having long experience in helping customers can help you get the best deal in your auto loan. If you are already suffering from high monthly payments, you can go for auto loan modification to save money on your payments. Auto loan modification helps you renegotiate your auto loan and lower your monthly payments or extend the time period for the payment of your auto loan.

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Improve Your Credit Score with Poor Credit Auto Loan

Banks and financial institutions usually look for healthy credit score when an individual approaches them for an auto loan. Credit score is a number representing whether the borrower will pay his or her debts. It is used by banks and financial institutions to evaluate the potential risk involved while lending money to customers. So, if an individual has low credit score, lending companies will be reluctant to provide auto loan to that individual.

But low credit score can be mended with the help of poor credit auto loan. Poor Credit Auto Loan not only helps you get an automobile of your choice but also helps you improve your credit score. So, if you have been denied an auto loan due to your bad credit score, you can go for poor credit auto loan.

Poor credit auto loan doesn’t take the credit score into consideration, as it has been specifically designed to help people with poor credit scores. However, lenders charge high interest rate on these poor credit auto loans which directly corresponds to the risk involved with the borrower. Some people may think paying such high interest as a disadvantage but if pay your loan in time your credit score will be improved. And, once this is done banks will be more confident to provide regular auto loans to you in the future.

Suppose you have already taken an auto loan and finding it difficult to make the monthly payments, you can go for auto loan modification. Auto loan modification specialists help you renegotiate your auto loan with the lending companies and lower monthly payments.

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Used Car for Repairing Bad Credit

If you are suffering from bad credit it becomes difficult for you to obtain an auto loan. Fortunately there are many companies who help you get auto loans even though you are suffering from bad credit in the form of bad credit auto loan. So a dream of an individual to own a new car is absolutely possible.

Still there are other ways to reestablish your auto credit. Instead of purchasing a new car you can opt for purchasing a used car. People may be apprehensive about purchasing a used car, but if looked strategically this makes lot of sense.

Buying a used car, say for example 2 year old car saves 20% to 35% off the price of the new model. Moreover today’s used cars are of highest quality and are designed to last for a longer period of time. Also if you purchase a used car which is still under warranty of new car you can save money in the service of the car.

If you want to reestablish your credit, choosing a used car can speed up the credit rebuilding process. The amount for auto loan on the purchase of used car is less compared to a new car and this makes it easier for an individual to repay the loan. By repaying the loan amount in the specified period people not only reestablish their credit but also improve their credit scores.                                 Bookmark  and Share

Auto Loan, Despite Bad Credit!!

One may feel that it’s very difficult to get an auto loan if you are suffering from bad credit. However there’s good news for customers as numerous companies have sprung up who help you get auto loans even though you are suffering from bad credit.

Yes, now individuals who dream of owning a car can turn them into reality. Companies offering bad credit auto loans can help you fulfill your dream. Banks offer auto loans to only those who have sound credit history but they do not offer loans to those individuals who have bad credit history. In such situations these individuals can turn up to companies who offer bad credit auto loans.

These companies may charge you higher interest rate but they are ready to provide you bad credit auto loan with a simple and easy process. Really, these kinds of services rendered by companies who offer bad credit auto loan has made the dream of the individual having bad credit come true.

In case if you have already taken an auto loan and finding it difficult to pay your auto loan then you can go for auto loan modification service.

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Loan Modification is a Hit

Obama administration has released its report for April Home loan modification program. The report states that- it conducted permanent modifications for almost 300,000 homeowners that an increase of 68,000 or almost 13 percent over March. This initiative of government, realizing the importance of loan modification is proving to work.

“The number of homeowners receiving significant relief through a mortgage modification continues to rise,” said Chief of Treasury’s Homeownership Preservation Office ( HPO ) Phyllis Caldwell. “Our focus now is on improving the homeowner experience and holding servicers accountable for their performance. Increased transparency through more robust reporting of servicer-specific data will contribute handily to those efforts.”

The mechanism of loan modification, is simple and most importantly it works. Auto loan modification also falls in the identical lines of home loan; moreover its function is more or less the same. If you are not able to pay your auto loans payment, auto loan modification can bring down your monthly payments and extend the term period.

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Auto Loan Refinancing

Are you in a dilemma whether to go for auto loan refinance or not? Well, if you are paying higher interest rate on your car purchase then you definitely need considering refinancing of your auto loan as one of your option.

Auto loan refinancing is one of the best ways to save your money. You could refinance your car loan and lower your payments to a great extent. While refinancing auto loan, the borrower chooses a different lender offering lower interest rate to refinance the auto loan and the borrower eventually pays off the current auto loan. Since the interest rate is lower the monthly payments are lowered and that helps you save a lot amount of money in your payments. This in turn helps you gain financial stability.

Say for example you bought a new car one year ago and the dealer told you that your auto loan would be 12 percent on a five year loan for a $ 25,000 car. You end up paying $ 556.11 as your monthly payments.

However once you opt for auto loan refinancing you can lower your payments to about $ 400 per month. That’s a saving of more than $ 7200 over the life of the loan. That’s a substantial amount of saving. Isn’t it?

To gain maximum benefit from auto loan refinancing you should refinance your auto loan early. You can save much more amount of money by refinancing your auto loan in the initial stages of the loan period than in the later stages. But it is very important to choose a lender who refinances your auto loan with lower interest rate on the loan amount.

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