Liberty Auto Loan: Bad Credit Auto Loans the Easy Way!
In the world of auto loans and bad credit auto loans, labels are not applied to customers without the cold hard numbers to back them up. So when a lender identifies a client as having bad credit, there is a definite value, affixed to that label, by which the lender judges the risk that client poses in, possibly, defaulting on a car loan. The numbers involved, are the borrower’s credit scores which are generated by that person’s credit activity processed according to a method known as the [clink id=”11″ target=”_blank” title=”FICO Scoring System” rel=”nofollow”]FICO Scoring System[/clink]. For lack of a better way to describe it, it is the precision meat-grinder that turns all of a consumer’s credit activity into an easy-to-read 3-digit number which will, in turn, determine if that person has good credit, or bad credit – gets approved for auto loans, or not.
Although credit scores identify who has bad credit and who doesn’t, they are not the final criteria for lenders in approving auto loans. A typical sit-down with a lender will include questions about income, employment, and existing savings accounts. The lender will ask about car choices and make suggestions regarding value, economy, fuel usage, and about how much the borrower is willing to pay up front, how long the loan should last, etc. It’s an interview and a negotiation process all in one, and the borrower should not regard this as a one-sided interview. The prospective borrower is a prospective employer as well and has every right to reject the lender if the two can’t come to an agreement on conditions.
Credit scores aside, bad credit auto loans are made every day. Most originate at car dealerships because dealer financing allows access to manufacturer backed incentives and programs from multiple financial institutions. In most cases, customers with bad credit can find approval, although, the loan will come with higher interest rates and certain other costs. In the dealership’s financing office, the prospective buyer needs to pay attention to everything that’s going on around him, or her. Unlike a typical finance company, the dealer’s loan department is trying to sell more stuff to the buyer. The finance manager may pressure the buyer into adding options that weren’t on the menu, attach fees that may have no bearing on the purchase, etc., and the buyer has the power to say ‘no’ to any of these additional costs.
The Federal Trade Commission has a [clink id=”52″ target=”_blank” title=”Guide to understanding the auto loan process.” rel=”nofollow”]guide to understanding the auto loan process[/clink] that details the rights of the consumer. With this handy reference, a consumer can find out what fees are legitimate, what interest rates are considered abusive, and where to find help if the consumer feels he, or she, is getting ripped off. It is important to note that the vast majority of lenders and car dealer financing departments do honest work and only want to sell a product without tricks or traps. But, no matter how honest and upfront a lender might be, there’s no guarantee that the consumer will find a good fit.
Where to find the right lender can be an exhausting task and any tool that makes it easier can lead to finding bad credit auto loans that don’t add to the consumer’s headaches. LibertyAutoLoan.com offers a service, which connects consumers with affiliated lenders and car dealerships across the country. From a safe, secure website, the consumer can make the decision on who to do business within his, or her, own backyard, or anywhere in the United States. When shopping is made easier, the consumer is more likely to spend money wisely. That’s the goal of Liberty Auto Loan – easy choices, wise decisions.