Online Car Loan Applications - How they Facilitate Lending
Get a Better Rate on
Your Car Loan and
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Online Car Loans
As credit requirements have tightened since the summer of 2008, car loans become
more difficult to qualify for. In fact lending giant GMAC, one of the leading vehicle
lenders indicated in October of 2008 that they'd require a FICO credit score of at
least 700 for prospective borrowers before they'd approve an auto loan. Needless
to say, as the national average FICO score at the time of this decision was 692
(according to Experian), many prospective borrowers are going to have trouble
finding an auto loan.
This is having a chilling effect on the auto industry. If their customers can't get a
car loan, it will obviously have a negative impact on industry sales. This is another
indication that if you're considering buying a car, you should have your financing
arranged before you go shopping.If you're like most people, your second largest
debt, after your mortgage, is your car loan.
One of the advantages of the Internet is that it's dramatically simplified the car loan
process. You can now handle your loan completely online. A check for your new
car will chow up in the mail the next day. Consumers really value this sort of
convenience, weather shopping for a loan or anything else. Thousands of people
every day are now choosing this method to get their car loans, rather than going
through a traditional bank or credit union. If you are a credit union member, you
should check there first. They usually have great interest rates and rapid approval
on car loans for members.
If you're not a credit union member, chances are you'll be able to get a new car
loan faster than you ever thought possible by applying for your loan online. In
many cases, you'll be approved almost instantly. It's remarkable what technology
provides us these days. One of the leading vehicle financing firms on the Internet
for such loans is 1-800AutoYes. Once you're approved you can usually have your
check overnighted to you. It will be in your mailbox the next business day, and you
can go pick up your car. You'll be able to avoid the perils of dealer financing,
which are well documented
They can quickly get you financing for your new vehicle, no matter your credit
situation. Their form is amazingly simple. You should fill it out just to see how
much you can save over your neighborhood bank. It's amazing to watch how fast
the approval comes back.
With the fluctuation in interest rates, there's a good chance you can save money by
refinancing your existing car loan, especially if your credit score has improved
since you originally got your loan. That points to another reason you benefit from
improving your credit score before you refinance. Those fractions of percentage
point in interest can add up over the term of the loan.
As with a new car loan, you can try 1-800 AutoYes for vehicle refinancing. Just fill
out the simple, no obligation form and you'll find out fast how much money you
could be saving over your existing car loan. Another way to improve the interest
rate you're paying on your car loan is to make a concerted effort to raise your
credit score before you apply for a refinance. The increase in your credit score will
almost always translate into a lower interest rate for your loan.
Remember that every time you apply for financing, your credit report is pulled.
This is known in the industry as a "hard pull" because it will appear on your credit
report and affect your credit slightly for about 6 months. It's not a big deal if you're
applying for a loan or two, but definitely something to remember.
You don't want to be applying for multiple credit accounts, such as store credit
cards, immediately before you are trying to finance a major purchase, like a vehicle.
Steering clear of credit card applications during this time can help ensure your
credit score is as high as possible when you're getting your car loan. This will help
ensure you get the best interest rate on your car loan.
Tips to Get the Best Car Loan
- Try at least 3 places to get the best rate, or use a service that does this for
- Check your local credit union. They're usually non profit, so you can often
get a great vehicle loan rate there.
- Clean up your credit before you shop for your car loan. If your credit is
bad, you may have few choices for a vehicle loan. Unlike in the recent past,
many places will no longer finance borrowers with bad credit. These
borrowers used to be able to get a loan, the lender just raised the interest
rate to compensate for the borrower's low credit score, but many lenders no
longer loan to bad credit borrowers. Try filling out this form if your credit is
bad. At least you'll find out quickly the status of your online application.
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