Liberty Auto Loan: Helping people with bad credit find the car loans they need!
New or used cars, most people will need financing to make the purchase possible which means their finances will come under the scrutiny of a lending professional. This can come in the form of dealership financing, bank or credit union loan, or a lending specialist. While the loan process begins with the infamous credit score, there are several other criteria lenders look for before approving a loan, and setting interest rates. It may not sound like it, but this is good news when it comes to car loans for people with bad credit.
Income figures heavily in loan approval even though it doesn’t enter into how a credit score is calculated. For a car loan to be approved, the income of the borrower should be steady and fall in line with the choice of the borrower’s car. Many lenders can offer certain approval guarantees based on minimum income ranges – and many of those ranges are smaller than many people with bad credit think. The important thing a lender considers is the regularity with which the borrower gets paid.
Going hand-in-hand with income is how much debt the borrower currently carries in relation to this, or her, income. In the trade, this is known as the debt-to-income ratio. Where a borrower with bad credit shows clear signs that he, or she, is spending more than he, or she, can afford, a lender will reject the application out of hand. But, if the borrower has only a small amount of credit debt in relation to his, or her, income, then the lender will much more receptive to lending that person money – even at lower than usual lending rates normally issued on car loans for people with bad credit.
A borrower willing to make a substantial down payment will score big points with a lender. Not only does this indicate that the borrower is serious about the investment, but it also takes some of the expense out of the total loan. Paying interest on a smaller balance can save the borrower several hundred dollars over the life of the loan. The usual down payment level is 20% of the total cost of the car. This is not just the purchase price of the vehicle, but the cost of registration, taxes, lending fees, and insurance. The car buyer should bear these things in mind when calculating his, or her, budget in the process of making the loan. The more a person can pay upfront, the more favorably he, or she, will be treated by the lenders. This includes lower interest rates on the car loan.
It all comes down to who the borrower can get a car loan from. In order to get the best car loans for people with bad credit, the borrower needs to shop around. This can be a challenge – not for lack of choices, but for the large number of lenders advertising nationwide for bad credit customers. LibertyAutoLoan.com can help locate car loan sources for people with bad credit locally, or anywhere in the country through a network of affiliated car dealerships and lenders. When shopping is made easier, the consumer is more likely to spend money wisely. That’s the goal of LibertyAutoLoan.com – easy choices, wise decisions.