Dealers don't finance your car loan, they get a piece of the action from a bank. The higher APR they charge you, the more profit they'll make. Here's the benefits of getting your car loan from an online lender:
• Usually you pay lower APR to online lenders than you would at the dealer.
• Approvals are usually within an hour during business hours.
• You don't pay hidden fees, points, or prepayment penalties.
• Online lenders FedEx your check the next day after approval.
• When you buy the car, just give them a bank draft from your online lender.
• Less chance of the dealer calling you up later to tell you the financing fell through.
• You usually have 60 days to use the check, the APR is locked.
Where and when you buy is up to you. They may check your credit, so be sure to get your credit report, and be sure it's correct. With your financing done, there's no need to endure the confusion and trickery of car dealer financing. With the check draft in hand, you have eliminated one of the shells in the cash flow shell game.
How to increase your chances on getting approval on a car loan
• If you're a recent college grad, don't apply until you're at your new job at least 6 months.
• Don't apply if you have moved in the last 6 months. Lenders verify address and income.
• A previous car loan or home mortgage on your record helps.
• Pay off your credit card balances as low as possible.
• Have a reasonably stable occupation like engineer, architect, finance, etc. No self employment.
• Other examples of credit extended to you should appear on your credit report.
• Don't apply for a car loan for at least 3 years after a bankruptcy.
• Don't keep a high debt load or credit card balances.
• No charge off's on your credit report.
Credit card companies say it takes 60 days for a change (such as paying off your credit cards) to show up on your credit report/score, but who wants to wait 2 months before buying a car? One of our visitors file a request for investigation of her report stating that the balances on these cards were incorrect, and the investigator looks up your correct balances and changes it. She checked 2 weeks later and it was changed. Also, by paying off 2 credit cards from 70% max credit level down to 0%, increased her credit score 100 points. That's the difference between paying 6% APR for a car loan, and 21%.
• Don't apply if you have moved in the last 6 months. Lenders verify address and income.
• A previous car loan or home mortgage on your record helps.
• Pay off your credit card balances as low as possible.
• Have a reasonably stable occupation like engineer, architect, finance, etc. No self employment.
• Other examples of credit extended to you should appear on your credit report.
• Don't apply for a car loan for at least 3 years after a bankruptcy.
• Don't keep a high debt load or credit card balances.
• No charge off's on your credit report.
Credit card companies say it takes 60 days for a change (such as paying off your credit cards) to show up on your credit report/score, but who wants to wait 2 months before buying a car? One of our visitors file a request for investigation of her report stating that the balances on these cards were incorrect, and the investigator looks up your correct balances and changes it. She checked 2 weeks later and it was changed. Also, by paying off 2 credit cards from 70% max credit level down to 0%, increased her credit score 100 points. That's the difference between paying 6% APR for a car loan, and 21%.
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