Challenges consumers with bad credit face when trying to apply for an auto loan in Seattle

by Malini Somra Blogger

Having bad credits is not good at all. When this occurs obtaining new credit can really be challenging. It has been spread that people with bad credit may find it very difficult to get a loan. This is and due to the fact that they are a lot of lenders who are in the practice of offering bad credit loans. As soon as people with high credit apply for a loan, there are higher rates, fees and more restrictions than even personal loan for individuals with a  Good credit.

It is important to know that when applying for a personal loan in Seattle, the creditor will have to check your credit record to know if you will be able to repay the debt. “Your credit scores and credit history”, will help lenders predict if the person that borrowed money will pay off eventually.

1.           Check your credit report for any error.

Rod Griffin advice checking your credit report for at least 3 months before applying for an auto loan in Seattle. Any error found should be corrected as fast as possible, by bringing it to the credit bureau precedent to applying for a loan. Most times dispute resolution may take up 30 days. Some of the errors that will be looked for are

·             Identity errors including address and spelling of the name

·             Wrong account details like wrong dates, credit limit and payment history

·             Fraudulent account of any.

2.           Avoid closing your previous account.

Closing your previous account may affect the possibility of applying for a loan and getting it. When closing an account which has a revolving debt, it can completely reduce your total available credit. When this happens, your credit utilization ratio may be increased and your credit score will be lowered.

3.           Budget your loan repayment.

It is important to come up with a repayment plan to make your previous payment on time. Your budget should involve a lot of things including saving goals, living expenses and debt payment.  If the person whom lenders offer flexible due dates, try scheduling your payment to coincide with the period you are paid by your employer.

4.           Stay on top of your payment.

It is better to commit to a loan length that will be perfect for your budget. Take, for example, if your loan length is up to 3 years, do the necessary math’s and pay up within 2 years.

5.           Beware of scam.

Among the legitimate auto loan leaders in Seattle, it may be impossible to spot a scam. Scammers may really not offer you a loan but will make use of your personal information and sell it for misuse. Any company that requires upfront fees for the loan, is always in contact, ignores your payment history, will be regarded as a scam.

Learn more about auto finance from https://en.wikipedia.org/wiki/Car_finance.

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Created on Aug 10th 2019 00:14. Viewed 262 times.

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