Tag Archives: auto loan

Help for Getting an Auto-Loan While on Disability

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ID-10091618There are already enough hardships on people with bad credit looking to get an auto loan.  It’s even harder if you’re on benefits.

Why is that?  Well it’s because Social Security disability income cannot be garnished.

What does that mean exactly?  If you’re on disability income and should your vehicle get repossessed, then the lender is unable to garnish that income to pay off outstanding loan balances.  The lenders keep this very much in mind when someone on SSI disability wants to apply for an auto loan.

That isn’t the end for applicants on SSI disability, however.  High-risk lenders will still take you into consideration under the right conditions.

One example is if you’re able to prove income that can be garnished.  If you have another job and can prove income through a W-2 that helps a great deal.  The length of time you’ve been with the job can make a difference as well.

Something else to consider before applying helping your chances is to take a look at your residency.  If you’re able to prove long-term residence stability, it can help.  You also will want to look into showing your credit problems to be situational rather than habitual.  The difference is that situational will be a credit problem as a result of a single problem, such as a medical issue, while habitual is a history of being behind in payment to multiple lenders.

Getting an auto-loan when on disability is tricky.  It’s important, more-so than with most borrowers, to know how the system can be influenced in your favor.  Thankfully, it is possible with leg-work and proper knowledge.

If you need a hand in getting an auto loan, then contact us at Bayside Chrysler Jeep Dodge. We work every day with people that have poor credit situations and help them get the loan they need that suits their life-style.  We love to say yes! We’ll work with you to put you in the car best suited for you. Don’t forget to like and follow us on Facebook as well as Twitter.

Source: Auto Credit Express

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

What to Do When Your Loan is Denied

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ID-10098880This was a write-in question for Fox Business for some advice on getting a loan:

Dear Debt Adviser,
I applied for a home equity line of credit with my mortgage lender. I was denied, in part, because I’ve been late occasionally on my mortgage payments. I now have a credit score of 670 and a high-interest auto loan for $5,400 that I’d like to pay off. Do you have any financial advice for someone like me? Please help!
— Sherry

The response isn’t just about home equity. It’s about all kinds of loans, auto loans included.

The writer for the response piece starts out by labeling the most obvious problem the person ran into when they applied for for another loan. The person was denied because being late on their mortgage payments marked them as high-risk borrower. Their credit score was also dragged down because of that risk. The final reason, using the same collateral from the same lender.

That’s the bad news. Thanks to a weaker credit score and being high-risk due to late payments meant that the application was sent back denied. Where does someone go from there, though? Just because you were denied doesn’t mean it’s over. It just means that you need to take a different approach to getting the loan you need.

Start by doing what you can to raise your credit score. Get your current loans paid off, on time or early if you can manage. Don’t get any new credit unless it’s necessary. You’ll want to keep your balances as low as possible. If you can, make a rule of not getting another loan until everything you currently owe is paid off every month.

In order to achieve this goal, you need to set yourself up to succeed. Without a solid plan that you can commit to, it’s very likely you won’t be able to pull it off. Put together a spending plan that manages your current bills. Make sure a portion of your monthly budget is dedicated to setting some money aside for saving, which will help you with wiggle room should any unexpected expenses come up.

If you follow these guidelines, you’re going to see an improvement in your score. It’ll take some time and effort, but in the long-run, you’ll be able to get the loans you need.

If you need a car, now is the perfect time to stop in to Bayside Chrysler Jeep Dodge and sit down with us as we work to put you in the vehicle you need.  We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net

Increase of Auto Loans Tied to Employment

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ID-100144096A recent study done by loans.org has pleasant news for the auto industry.

The website ran a study that combined both employments records from the Bureau of Labor Statistics and the Quarterly Report on Household Debt from the Federal Reserve. They looked for a correlation between auto loan debt and employment rate. Here’s what they found: between the third quarter of 2009 and the first quarter of 2013, auto loan borrowing rose as unemployment went down.

I can’t say I’m too surprised by that finding. Less people unemployed means more people have income. More income means that people are going to buy more things. That’s not a terribly conclusion to come to without doing a lick of research. Still, it’s nice to have numbers to prove something that should most definitely be true.

Another thing to note about the correlation between employment and auto loans is that there could be a number of people that were on long-term unemployment. If the people in question were subjected to those harsh conditions, they may have had to stretch to make their lively hoods work. That means ignoring the need to purchase a new car and relay on a broken down model frankenstein-ed to survive as long as possible. Now that they have reliable income again, it’s time to replace such a vehicle.

The economy has been shown to be improving and families have found themselves needing financing to replace aging vehicles. Thankfully as the market has bounced back along with the buyers, so have the auto loans. They are easier to obtain today than ever. Business is booming for the industry.

If you need a car, now is the perfect time to stop in to Bayside Chrysler Jeep Dodge and sit down with us as we work to put you in the vehicle you need.  We provide the Queens area with top quality customer service and want to work with you to satisfy your car-purchasing needs. We love to say yes! Like us on Facebook and follow us on Twitter for more financial advice and monthly parts and service specials.

Image courtesy of Stuart Miles / FreeDigitalPhotos.net