For people looking to raise their credit scores, gain credit or bounce back from bankruptcy bad credit auto loans are a viable option. Bad credit is caused by not paying bills or paying them late and is very common nowadays; especially with the way the economy has been acting. There are also a lot of people who were not aware that they needed to gain good credit in their youth and now find it almost impossible to gain any credit at all. Bankruptcy is caused by running out of money all together due to extreme debt.

These are not good positions to be in; however there are a few options for getting your credit score back in order. Some have many drawbacks, though. For instance, there are credit cards offered to people with bad credit no credit or bankruptcy, but these credit cards usually have outrageous fees and high interest rates.

Companies that offer bad credit auto loans on the other hand do not usually charge very many fees. The interest rates are higher than normal car loans, but the market has gotten very competitive. This type of loan gives you the opportunity to get a new-to-you car and by making your monthly payments on-time you also have the opportunity to raise your credit score.

Be sure to check the actual value of the car you are interested in buying because some creditors will increase the prices of the autos intentionally. Be prepared to pay about $200-$500 more than the car’s value, but look around more if you are expected to pay more than that. The less expensive the car you buy is, the better your chances are of not falling behind and being able to raise your credit.

The internet is a great place to search for bad credit auto loans. There are many different reputable on-line companies with competitive interest rates. It is best to look around at companies that offer free quotes so that you know you are getting the best interest rates.

By taking advantage of one or more of these loans and buying an inexpensive used car you have a way to raise your credit with comparatively few fees and ok interest rates. This makes bad credit auto loans a great way to gradually lower your future credit card and mortgage interest rates as well as your interest rates for a new car later on.

To learn how a 50 yr old clerk with bad credit stunned every loan agency by buying a car in 3 days, visit http://www.badcreditcarloanz.com to get your FREE information now!

Many people know that they need a high credit score to get a loan. A high credit score means that there is a lower chance that the money will not be repaid and the easier it is to borrow money. However, it is not widely known what goes into a credit score.

Credit bureaus use information about each borrower that is taken from a number of sources. Former employers, current employers, the number of residences a person has had in the last five years and whether or not the borrower owns his/her own home all provide some input data. In addition, a person’s credit history is examined and how often bills are paid on time is considered. Credit bureaus also look at legal issues such as civil suits, judgments, bankruptcies and criminal convictions which may affect a person’s credit.

All of these items go into the evaluation of a person’s credit. The end result is a determination of a person’s capacity, character and collateral - the three Cs of credit.

# Capacity is concerned with a person’s ability to repay the loan. The lender evaluates the borrower’s income and compares it to current expenses. The length of time a person has been at his/her job, the number of dependents and any alimony or child support payments are also considered. Not only does capacity involve a person’s current financial condition but it also considers future potential income - as would be possible for doctors, lawyers and professional businesspeople.

# Character is a judgment of a person’s willingness to repay debt. By checking into past credit history a lender can determine if the applicant is living beyond his/her means, if he/she is overextended or has been delinquent in paying bills. Character also reflects a person’s honesty in giving accurate and complete information on the application. Judgment of a person’s character also includes an examination of a person’s stability - how long has the applicant been at his/her current employment and how long has he/she resided at the present residence.

# The third C is collateral. Since there is always the chance that a person will be unable or unwilling to repay the loan, lenders often require collateral (generally property is used to secure the loan). If the borrower defaults on the loan, this property can be seized and sold so that the lender can recoup the money lent. The value of the collateral is directly tied to the loan. A car loan may require the car as collateral, a property loan may require the property as collateral. Sometimes, a lender can require money as collateral. A Certificate of Deposit or an annuity may be pledged for the loan. In all cases, if the borrower fails to pay, the asset is seized as repayment for the loan.

What’s the hardest thing to do in these days of stiffer competition, and a very mobile, selective, and dispersed customer base?

Making sure they stay loyal to you, of course!

OK - so what ideas have you got to do this? How can you ensure that when your clients think ‘new cars’ or when their buddies think the same, it’s your name they think of?

Well, try this for size - help them fix their credit files, and keep them fixed…
Look, if you have to turn down a customer as they are desperate to buy your cars, they have the deposit, but they have a lousy credit score, and can not get an auto loan, if you could help them repair their credit score, get them the auto loan, you get a sale, and you get a customer for life! Don’t you think that would give you just a little edge over your competitors, and put your repeat business solidly ‘in the bag’?

Now, you may not be aware of this, but in many cases, your client’s credit file contains so much rubbish and even incorrect information, that with a bit of work, they could actually repair their credit file information themselves, but most wouldn’t know either where to start, or would not think they even could do this themselves very successfully.
Just to be able to contact your entire client base, and offer a new service for them, even though you must make a charge for it to at least cover your time, should make the majority of them sit up and think that - hey - this company actually thinks about my well being, so my next auto loan for my replacement car will be with you!

Now, before you dash off and leap into this, you should actually bear this in mind.

There is quite a bit of bad press on credit repair companies at the moment, and you may be quite justified in thinking that there is enough dirt written about a few rogue auto dealers without also taking on the dirt surrounding credit repair companies and their operations.

Have a look at some of the negative things being said about credit repair companies, and the arguments in their favour. Then think again about my suggestion that you offer this service to your clients yourself.

It is rather unusual, that a US Federal Department has taken the time to warn people off using such credit repair companies, quoting that ‘there is nothing that these credit repair companies can do that the individual can not do for themselves…’

So, are these new breed of companies all just scams, like the Feds tell us they are, or are they actually playing a very worthwhile role in society…

Let’s just take a look for a minute at what these credit repair companies purport to set out to do for your clients.

By repairing your clients credit files, removing irrelevant, or in many cases, incorrect, information from their credit file, their chances of getting more credit such as an auto loan, or indeed, the rate they pay for their auto loan in terms of inflated interest charges, can be greatly altered by making sure that only relevant, or correct and up to date information is stored there.

This can actually save them thousands of dollars, not to mention the heartache of getting turned down for credit. These sorts of issues have to be resolved quickly, or their whole life and lifestyle can be blighted.

But why is there so much negative press against these credit repair companies, and especially from US Government departments?

And why this great crusade to inform everybody that there is nothing that credit repair companies can do that your clients can not do themselves?

Whatever service industry you like to chose, there are rogues in every case. You only have to look at your industry, the motor industry, to see examples of people being ripped off left right and center. But again, in this internet-enlightened age, you can get any information that you like on how to change the oil in your car, or even to take the engine out of your car. Does your average client want to learn a new trade, like getting under their car and draining the sump oil, or struggle to take the engine out of their car?

Heck, no - they would call in an expert of course. And to avoid being ‘ripped off’ they would make sure that the organisation that they called was either personally recommended, or had proven credentials and a proven track record.

Well, what’s the difference with getting your clients credit files repaired? They may know how to do it, like taking out of their car engine, but with such an important outcome at stake, why do it themselves?

Now, over the last few months I have been conducting a survey on US-based credit repair companies, and a number of them operate a ‘branding’ facility where your company become an agent for the best ones, and you simply follow the easy steps in their credit repair systems, and help all of your clients to a better credit report where possible.
It’s a total ‘Win - Win’ scenario.

You charge your clients sufficient to cover all of your extra time and costs of being a credit repair ‘agent‘, your client gets a better credit file, can afford to buy your cars, get granted auto loans at reasonable rates, and tells all of his friends what a wonderful service you offer to your clients.
Believe me; this credit crunch is going to get worse before it starts to get back to normal.
Make sure you are one of the survivors by following the advice in this article, and help get your clients to repair their credit and start spending on your auto loans again…

Geoff Morris is an Internet Entrepreneur who quit his corporate job many years ago, and is no stranger to taking on institutions to protect the integrity of his public credit files. Take a peek at some of his real life solutions on actual credit repair facilities at http://www.questionmycredit.com/

With the nation´s rampant foreclosure rate being called the worst since the Great Depression and California´s foreclosure ranking the second highest in the country according to RealtyTrac.com, I am asked many questions regarding the trials of foreclosure. Not surprisingly many of these questions are on the subject of short sales.

Q: “…how long after a short sale before I can get financing?”

A: The short answer: 18-24 months.

Why?

Since a short sale is usually negotiated because of payment default or foreclosure proceedings an important issue to be addressed is your credit score (FICO). A short sale definitely harms your personal credit far less than any other foreclosure solution such as a Deed in Lieu but your home loan payments were at the very least behind even if the lender had not yet issued a Notice of Default.

Interest rates are FICO driven meaning that the higher your credit score the lower the interest rate you receive on financing of a home and the lower the payments will be.

Ideally you´ll want to raise your credit score to at least 620 and 680 or higher is better.

Tips to Help You Get There

Get a free copy of your credit report at annualcreditreport.com and scrutinize it for any errors or discrepancies. Contact the reporting creditor to find out how to correct any misinformation.

Make all payments, even your rent, cell phone, utilities, etc., on time. Lenders typically don´t want to see any late payments in the past 12-24 months so you have time to plan. Major credit lines such as those for your car loan are vital but when rebuilding credit (or in the case of no credit history) simple everyday payments can come into play.

Pay off any collection accounts. The account balances can often be negotiated down by contacting the creditor and a lower amount accepted as total payment on the account. A charged off account is also considered an open account so be sure that if you have any charge offs negotiate a settlement!

Lenders considering new loans won´t make a loan when there are open collection accounts.

Keep the balance of any credit card paid down. Credit cards can become voracious monsters very easily. Use caution here. You want to keep the balance on each credit card to 25-30% of the approved credit line. In other words, if your credit line is $5,000 your balance shouldn´t be more than $1,250-$1,500. This takes in the point of your borrowing power.

A couple of don´ts: 1) Don´t close unused credit card accounts as a quick solution to raise your credit score—there is no quick fix, 2) Don´t apply for new accounts you don´t need simply to increase you borrowing power.

Should you find yourself struggling you can contact the non-profit Consumer Credit Counseling Services (National Foundation for Credit Counseling) at 1-800-388-2227 or on the web at www.debtadvice.org

Auto loan rates have become very competitive, with increasing number of buyers opting to finance their car purchases. There are plenty of online car loans and refinance loans options that one can explore. This article aims to educate readers on various ways to obtain low rate for your vehicle. For more information visit about auto loans