Eighty percent of all Americans have at least one blemish on their credit reports. And a third of all consumers have credit scores so bad that they may have difficulty securing a car loan. Yet credit experts agree that demonstrating responsibility by buying a car on credit, and making regular payments, is a good way to help improve a poor credit score."Credit challenged consumers can become trapped in a bad credit conundrum," says Travis Weisleder, president of Carloan.com. "How can they improve their credit score if no one will give them credit? And remember, a spotty payment history is only one factor that can bring down a credit score. Having a low score does not automatically mean one is an irresponsible consumer."
A low credit score can virtually eliminate any chance of securing a car loan from a traditional lender. At best, it can mean a difference of a high versus low interest rate - and thousands of dollars over the life of a vehicle loan. Thousands of credit challenged consumers, however, are finding help - and securing loans - on the Information Superhighway. Online, companies are eager to compete for business from all consumers - not just those with spotless credit histories.
"Online lending is booming," Weisleder says. "People with good credit and credit problems are both finding online borrowing is a great way to get the money they need quickly. Services like Carloan.com can help match buyers with dealerships who are willing to work with them to secure financing and get them into a new or used vehicle.
Weisleder recommends consumers keep a few things in mind when shopping online for a car loan:
- First, clean up whatever you can on your credit report. Errors on credit reports are more common than you might think. Demand, in writing, that the credit agencies remove any erroneous information.
- Before you begin loan shopping, know what type of car you want to buy. Research your vehicle choices and find out how much car you can afford. An online calculator can help you determine what your monthly payment will be.
- Learn about the types of loans available. Not all loans are created equal. To get the best possible loan deal, educate yourself to know what product will best serve your needs.
- Research online lending resources. "Most traditional lenders now have an online presence as well," Weisleder says. "But if they turned you away in person, applying with them online is likely to yield the same result. A true online company, like Carloan.com that helps match you with the right dealer and financer, will be more flexible, faster and committed to getting you the funding you need." But, Weisleder cautions, don't apply to multiple lenders at once, as this may have a negative impact on your credit score.
Carloan.com helps consumers buy new and used cars by searching a network of thousands of dealers and financing sources in all 50 states. There is no charge for the service, and applying online takes only a few minutes. Within 24 hours - and often sooner - consumers can be matched with a dealership willing to help them.
To learn more about securing an auto loan online, visit www.carloan.com.
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