1st Time Auto Buyer Loans – What makes Qualification Easy?

Age and status don’t matter when it comes to buying a car. Car is a requirement for every American. Most automobile purchases are made with the help of car loans. When you buy a car for the first time, you may have several doubts. But, once you know the entire car loan process, it will all be very easy for you.

Buying your first car is a great experience and you shouldn’t get overwhelmed. A first time buyer needs to get a first time auto buyers loan. This car loan program can be availed by a teenager, a college student, or a person with no credit, a good credit borrower etc. The only common factor among first time car buyers is that they are buying a car with auto loans for the very first time.

Criteria for Getting Approval on First Time Auto Buyer Loans

Employment

Your job plays a major role in getting a first time auto buyers loan. You can be employed part time or full time but, you will definitely need employment proof. You can show your recent pay stubs as a proof. If you are self-employed, you can use your tax statements as proof.

Lenders have simple logic when they ask you to have stable employment. If you have a regular job, you will be able to make timely payments. This will increase safety of lender’s investment.

Income

Income and employment are very closely related. When you have stable job, you are able to earn a regular income. Most lenders require you to earn at least $1,000. This number changes according to the lender.

Income is an important criterion because you can make regular payments to the lender only when you earn enough. If your income is insufficient to pay your expenses, getting first time car buyer loans is not a good idea.

Credit Rating

Your credit score determines your credit repaying ability. Lenders are able to know your financial history by taking a look at your credit report.

Now, it is always better to know your accurate credit score. Before applying for a first time auto buyer loan, you must check your credit report and remove all errors and mistakes. If you find any discrepancy in your credit report, you must inform to the respective credit bureau.

Higher the credit score, better it is. So, work on your credit score.

Down Payment

Down payment has a very significant relation with your car loan approval chances. When you make a substantial down payment, you reduce the auto loan amount. This increase lender’s trust and decreases his doubts and risks. Making a down payment of 10%-20% can significantly reduce your interest rates.

Co-Signer

Co-signer is a person who guarantees the car loan by signing the auto loan agreement along with the primary borrower. Though co-signers are not compulsory, a co-signer adds significant weight to your first time buyer car loan application. You can actually avail higher amount of loans at lower rate of interest when you have a co-signer.

All these factors are important in getting first time auto buyers loan. When you apply for a car loan, you have to convince the lender of being a low risk credit borrower. If you can do, instant approval will very easy for you.

EZautofinance.net believes in offering affordable car financing to each and everyone. Our first time auto buyer loan program is perfect for first time car buyers. Apply on our website and get instant approval!

All the best!

How to Qualify for Car Loans after Bankruptcy?

Chapter 7 or Chapter 13- Every bankruptcy is a very challenging situation. It causes embarrassment and financial troubles but it doesn’t mean that you cannot buy a car. Many people think that they will never get auto loans as bankruptcy ruins credit scores. Thankfully, this is not true. Post bankruptcy auto loans are a boon for borrowers who have just come out of bankruptcy.

A bankruptcy stays on your credit report for ten years and so, it has such a huge impact on car loan approval chances. It is for this reason that you must work strategically in order to get a car loan. The key is to reduce the lender’s risk. If you are successful in lowering the lender’s risk, he will easily offer you an after bankruptcy auto loan.

How to Get Car Loans after Bankruptcy?

Patience is the Key

You filed for bankruptcy because you were unable to pay-off your debts. You certainly don’t want to get a car loan with unbearable monthly payments. So, you must have patience in getting an after bankruptcy car loan.

There are many lenders who offer auto loans to people in bankruptcy. But, they often charge high interest rates. So, it is best to opt for car loans after coming out of bankruptcy. Once you have discharged bankruptcy, you get the opportunity of availing car financing at reasonable rates. You can lower your rates by waiting for two to three months. During this time, you must concentrate on increasing your credit score.

Employment and Income is Important

When the lender is ready to overlook your bankruptcy and bad credit score, he is taking a risk. If he considers your car loan application very risky, he will not offer lower interest rates. But, there is a way of reducing his risk.

If you have a stable job and regular source of income, the lender will be assured of regular monthly payments. This will help you secure a post bankruptcy auto loan without much difficulty.

Lenders also consider your income as an important factor for approving your post bankruptcy auto loans. If you are able to pay your expenses and still save, you will be able to make easy monthly car loan payments. So, lenders ask for sufficient income and a decent debt to income ratio.

Search For Lenders That Offer Car Loans After Bankruptcy

Traditional lenders and banks shy away from borrowers with post bankruptcy because they are considered a huge risk. There is no point in applying with those lenders who are going to reject your car loan application.

So, research and then choose your lenders. Apply with those lenders who are experienced in offering after bankruptcy auto loans. You can even go for online auto lenders. There are many online auto financing companies that offer affordable auto loans. They even offer auto loans after bankruptcy because they have a wide network of lenders and dealers.

Inexpensive Car

When you have a just come out of bankruptcy, you mustn’t buy a new car. A new automobile is costly and will increase your car loan amount. Instead, choose a reliable used car. Don’t forget to get it checked by your local mechanic.

Put Money Down

When you make a substantial down payment, you reduce the car loan amount and the lender’s risk. This prompts the lender to offer you lower interest rates and instant approval. So, start saving money for down payment. Usually, 10% -20% of the total cost of the car is enough. But, there is no harm in going for a higher amount.

Co-Signer Can Help You

Getting someone with a good credit score to co-sign your car loan contract reduces the lender’s risk to a considerable extent. Find someone who is ready to co-sign your after bankruptcy auto loan. A co-signer can be anyone from your parents, friends, or relatives.

All these points will definitely improve your chances of getting approval on auto loans after bankruptcy. These points will help in reducing the lender’s risk which means you will get reasonable interest rates.

A post bankruptcy car loan is a perfect way of buying a car. It will also assist you in building your credit score after bankruptcy. So, it is important that you take a well-thought decision.

EZautofinance.net is a reliable online car financing company that offers low rate online bad credit auto loans. Our huge lender network helps us approve after bankruptcy auto loans. Apply now and begin your car journey today!

All the best for an after bankruptcy auto loan!