Georgia Car Loans with Bad Credit
No credit Georiga auto loans or first time buyer auto loans are a bit tricky to get approved for. There are several keys factors lenders look at to determine whether or not they will loan you money.
There are lenders that exist that will approve just about anyone, but their terms are typically not good for the consumer. These lenders are usually looking for big down payments and short finance terms with high interest rates. The following list is to show what better lenders, i.e. credit unions, your local bank, etc. will be looking at to, hopefully, get you a better approval with more favorable terms and interest rates.
1) Do you have employment stability in Georiga?
The more job stability the better. Most lenders are going to want to see at least 18 months work history with your current employer. This does not bode well for those of you that are right out of high school and have been working at the local pizza place for three months.
2) How big a down payment do you have?
Lenders like big down payments. Big down payments mean less risk for the lender and therefore, lenders will sometimes make exceptions or offer better terms and interest rates. A typical down payment is going to be $1,000 or 10% of the purchase price, but they really like to see a larger commitment, more like $2,500 or 25%.
3) How much are you looking to borrow?
Most first time buyers I see, due to their inexperience, shop for vehicles in Georiga that are way out of their league. Even though you may be okay with a $600 a month payment, the lender is not. They will usually want your monthly payments to be 15% or less of your gross monthly income. If you make $2,000 a month, the max payment they are going to want you to have is $300.
Lenders will also, typically, only lend $8,000 to $12,000 for a first time buyer, so you may need to adjust your thinking down a little bit.
4) Do you have any negative accounts on your credit file?
You may never have applied for credit, but you may still have collection accounts reporting to your credit file. This is most common with utility companies, medical collections, judgements and tax liens. If you have any of these and no positive credit, you will have to get these completely removed from your credit file (if possible) before any of the better lenders will even come close to considering your application.
This is by far the biggest killer and most customers end up having no option but to finance through the undesirable lenders.
5) Do you have a qualified cosigner?
You probably wouldn't be reading this article if you did, but a qualified cosigner can help immensely. A strong cosigner can help to slash your interest rates, give you a no money down option with better terms and allow you to buy more vehicle. If you have a qualified cosigner available, this will certainly help your situation tremendously.
To sum this up, it is possible to get approved for a no credit auto loan, the question is what type of approval and with what type of lender. Obviously, the more positives you have from above the better your approvals term and interest rate will be.
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Georgia Bad Credit Car Loans with Suprime Loans
If you have a good credit score, you can go for prime loans. Prime loans offer you the incentive of lower interest rates. Following the finance boom during 80s, lending companies started offering Georgia subprime auto loans. These loans are specially meant for people with not so good credit score. Unlike the prime loans, subprime loans carry much higher rate of interest. Lenders generally use a method of rating the applicants.
Applicants here mean the people who apply for the loan. The method is based on the FICO ratings. A person having a credit score above 650 can go for prime loans. But the fact that many people have credit score less than 650 does not stop money lenders from offering finance for automobiles in Georgia . You can apply for the loan provided you have a steady income and if you are above 18 years of age. However the process is a bit lengthy. In contrast, subprime auto loans are much faster and easy. They have minimal paperwork.
All you have to submit is a proof of income and a proof of age. Some companies also require a quotation from the automobile dealer. In any case, once your loan is sanctioned, you have to submit the installments by way of post dated checks. Most lending companies employ flat interest rate. This means you give them post dated checks of equal amount from your active checking account. The amount on the check will vary per scheme.
If you go for a longer period loan, you pay smaller installment. But the overall amount you pay will be much higher than you borrow, as the interest is flatly applied over the time period. Another disadvantage of going for a subprime auto loan is that they apply a prepayment charge. In case you want to pay off the loan before the tenure ends, they charge some per cent of the balance loan amount.
This ensures that the lenders do not lose out much on the interest they would have otherwise earned. You have to check the prepayment charges too while selecting a lender. Carney Alden is a Masters in Accounting and Financial Management from Lancaster University Management School. Having completed his Masters in Finance from Derby University. He provide useful advice through his articles that have been found very useful. T
Georgia car loans online new or used car
When it comes time to purchase a new car, it is important to remember that you have options - no matter what kind of car you are looking to purchase. Through auto finance opportunities, you can not only buy more car for your dollar, but you can also buy a car that works for you and your budget.
Auto financing can come in many ways. It can include loans from institutions, such as banks, and it can include more creative auto financing options as well. Here are 3 easy ways that you can get auto financing that will actually work with your budget:
If you have the option, finance your next car with your partner. Financing together may not only help to decrease the interest rate on your loan, but it can go a long way to making banks and other lending institutions more comfortable giving you a sizeable loan amount. Make sure that your partner has good credit, though. Having a partner with bad credit may actually bring your interest rate up. Also, make sure that your partner is willing to help you make the loan payments so that you are not stuck with having to pay them on your own unexpectedly.
Speak with the Dealership
Car dealerships are prepared to help you with auto finance - whether you are purchasing a new or a used car. Many dealerships require a large down payment - usually about ten to twenty five percent of the total cost of the car - before they agree to make the loan to you. Also, talk with the dealership about different payment schedules, such as a one year loan, two year, or even six year loan. You may want to get the loan paid off more quickly than six years though!
Buy on Credit
You may not get the advice to buy a car with a credit card too often, but consider this: if you have a credit card that offers miles back or other rewards, then you may just come out ahead...as long as you have a comfortable amount of money available to pay the credit card off. Some credit cards come with interest rates as low as zero percent for a year, which means that you could buy your car on credit, pay it off, and never once have to pay interest. Always analyze your budget against the interest rate and rewards on your credit card first.
Auto finance can be tricky, but with the right research and help, anyone can finance a car in a jiffy. Just remember to value your budget so that you do not purchase a car that you are unable to afford. Budgeting is the first step to sound auto finance.