What to Expect During the Car Loan Process

You have found the perfect car. The only thing standing between you and receiving the keys is the car loan process. This can be nerve wracking, but it will not be so bad if you are prepared and know what to expect.
The main order of business in this process is the loan application. Whether you are at a dealership or bank you will be given paperwork and asked to fill in a lot of detailed information. This typically will include information about you such as your address, social security number, driver’s license number, your job and any other income sources. Be prepared to show documented proof if necessary. It can also help to have at least one month’s worth of your most recent paycheck stubs with you. You will also need to fill in the names, phone numbers, and addresses of as many as five personal references, so you should have this information available.

Filling out the loan application is where most of your energy will be spent. Once it is completed you just hand it over and sit back and relax as it is processed. There is really not much more you can do. Your loan will either be approved or denied, so it doesn’t do much good to worry. If you are at your own financial institution, such as bank or credit union, your representative will give you the good or bad news. If your loan application is denied they may offer some advice for how and when you can re-apply, and which steps should be taken. If you are at a dealership, the salesperson will give you the good or bad news. They really want to make the sale so they will do everything in their power to get your loan approved, but this may mean terrible terms such as high down payments and high interest rates. They will also generally suggest you try getting a co-signer, such as a parent or other individual with established credit if needed. Once you are approved then the rest of the ownership paperwork for the car can be completed. If you are making a down payment you can then write out a check.

Your experience in the car loan process all comes down to your own financial situation and how well you have prepared for it. The worst situation to be in is one in which you are desperate for the car, because then you may be forced to accept terrible contract terms in order to receive loan approval. However, if you have been planning on buying a car for some time you can take proper steps to prepare. This includes saving up a decent down payment, as well as making sure all of your financial information is in order and available when preparing the loan application. Usually, at the end of a successful car loan process getting the keys makes it all worth it!

Credit-building Credit Cards to Repair Your Credit Score

When you’ve defaulted on the terms and conditions of your credit agreement, bad credit will show on your credit report for the next 7 years. If you plan to apply for a mortgage, unsecured loan, car refinancing or a private student loan you may wish to use credit-building credit cards to help repair your credit score. Don’t believe credit repair companies that claim to be able improve your credit score overnight or get you a completely new credit report. This simply isn’t legally possible if you’ve recently defaulted.

Types of Credit-building Credit Cards to Fix Your Credit Score

Although there is no such thing as rapid credit repair, there are several different credit cards to rebuild credit. Creditbuilder, unsecured and secured credit cards report to credit reference agencies each month so each punctual repayment will lead to a gradual credit score improvement.

Best Unsecured Credit Cards to Rebuild Credit

If you aren’t able to offer the issuer collateral, an unsecured card can help to fix your credit score. It’s important to appreciate that the initial limit is likely to be just $250. There are also several charges that must be cleared before using the card so that you have some credit to work with.

The limit on a unsecured credit-building credit card is normally subject to review after a period of 6 months. Provided that you pay punctually and avoid maxing-out your card, this is likely to be increased. Limits are low to begin with in order to minimize any potential losses in the event of default.

To maximize your credit improvement, you should avoid using more than 30% of your limit each month. This is because the Fair Isaac corporation formula looks closely at credit utilization so you don’t want to appear too financially stretched as this is perceived as a warning sign.

Secured Credit Cards to Repair Your Credit Score

If you need a higher limit, a secured credit card will help you to achieve this goal. Just deposit a sum of cash equivalent to the limit you require. You’ll need to settle the outstanding balance each month, but if you do this within the grace period you can avoid the payment of interest.

You protect the financial interests of the lender through the provision of collateral, such as property or a cash deposit. If you default on the terms of the agreement, you stand to lose your security. For this reason, it is generally inadvisable to secure the debt on the family home.

Using Creditbuilder Credit Repair Credit Cards to Rebuild Credit Ratings

A credit-builder card involves getting a small loan from the issuer which you repay as a management charge over the next 12 months. Provided that you pay on-time, this will be reported to Experian, Equifax and TransUnion. One of the best credit-building credit cards when seeking to repair your credit score and avoid debt problems. Unsustainable debt is the cause of past and future credit problems.