Vinart Blog

Applying for auto financing has never been easier than it is now in the age of the Internet. You can apply for a car loan online and be approved more quickly than ever before.

Of course, if you are one of the people who still distrust the Internet then you can still apply by phone, but let’s count the benefits to applying for a car loan online:

• Less embarrassment. How many times have you sat down to fill out a loan application and needed personal information about yourself that you forgot to bring with you. You either had to leave and go home to get the information or call someone to tell it to you over the phone – while the credit manager sat and watched. No more embarrassing moments. You can fill out your loan application in the privacy of your own home where you already have all the information you need.
• Complete security. Believe it or not, sending information online is more secure than sending it by phone. Phone wires can be tapped and cell phone messages are never secure. However, due to encryption technology, sending personal information online is safe and secure.
• Fewer distractions. Since you are filling out your auto finance application in the privacy of your home with no one sitting in front of you, there are fewer distractions. No credit manager asking you questions and no background noise – unless you turn on your own TV or radio.
• Quick approval. When you apply for credit at most places, you have to wait. But not when you apply online. You can find out if you’ve been approved within seconds.
• Your information is private. All Federal, State and Local laws that apply to personal privacy apply online as well. Your information will not be handed out without your prior approval. Your privacy is protected.

Applying for auto financing online is safe and secure and you’ll get approval faster than applying for credit by traditional means. Super lightning fast!

One myth about credit repair is that a simple letter to the credit reporting agency will fix all problems. A letter can help you dispute an error or a false claim against your credit, but it will not fix accurate reporting of bad credit. If you have negative information on your credit report that is accurate then the only thing that can fix that is the passage of time.

Most credit information remains on your credit report for a period of seven. The exception to this rule is bankruptcy, which can remain on your report for ten years. If you have unpaid judgments against you then the statute of limitations on those judgments can exceed seven years.

The best way to remove negative information from your credit report is to go back to your creditors and request that the information be removed in exchange for your payment. This is usually very effective. Creditors just want their money.

However, after you remove negative information from your credit report, if you have no new credit then you all you’ll have is a blank credit history. That doesn’t do you much good either. It’s time then to begin building credit to increase your credit score and improve your credit rating. Financing an automobile purchase can be a good step in that direction

If the purpose of purchasing an automobile is to restore your credit, don’t buy a new car. Buy a used car instead. Work your way to the large purchase by improving your credit score first.

Follow these steps to repairing your credit with auto financing:

1. Find a good, trustworthy tote-the-note auto dealer
2. Locate the vehicle you want to purchase (Try to stay within a reasonable range based on your income and credit repair goals; a good rule of thumb is to purchase a vehicle between $1,000 and $2,500 on credit.)
3. Apply for a line of credit for auto financing.
4. Faithfully make your monthly payments on time (Late payments will work against you and decrease your credit score rating.)
5. After making monthly payments for at least six months, you can go ahead and pay off your car loan. The six months of good credit history will improve your credit score. Now you can make larger purchases on credit and get better terms.
6. When you are ready to purchase another automobile, take the vehicle you are currently driving and trade it in on another vehicle. Again, make sure you pick a vehicle in the price range of your budget and credit goals. Don’t get in over your head. That’s how bad credit develops.

There are pros and cons to buying a new car just as there are pros and cons to buying a used car, also called pre-owned. For every family there may be a preference, but for others it might be a matter of doing your homework and discovering which automobile fits into your needs.

It is not always less expensive to purchase a used car. Pre-owned vehicles can have their own hidden costs. For instance, if you buy an older vehicle you may have to pay for constant maintenance, which could be more expensive than purchasing a new car over the long run. Aside from that, a used car can also be more expensive than a new car depending on the make and model and the dealer from which you make your purchase.

The best way to decide whether to buy a new or used car is to research the specs on the individual makes and models in which you have an interest. Don’t just read consumer reports. Although they are helpful, you should also ask your mechanic what kind of issues are typical of a particular make and model of vehicle. If you know, for instance, that a specific auto part is replaced in the majority of vehicles of a particular make and model after five years and that car part is expensive then you might give a second thought to purchasing that make and model of a four-year-old used car.

Financing terms might also be a deciding factor for you. If you can get better terms on a new car than you can on a used car then it could make a difference in your total cost over the term of your auto loan. It’s important to consider all the factors.

Auto dealers themselves can also be a great source of information. Your car salesman can give you the details on particular specs for new and used cars in their inventory. At the end of the day, which type of vehicle you purchase depends on what makes you happiest.