Improve your credit rating with your job is your credit car loans
You know about traditional banks and financial institutions following strict guidelines about the people they lend money to and the collateral or security they seek for their loans. These lenders don’t usually sanction car loans to loan applicants without conducting a credit check. This can make it difficult for those with a poor credit rating to get a car loan.
However there is help today for people like you looking for a suitable car loan with your poor rating. You can now use your job as your credit for car loans. Yes, in such cases, you get to use your paycheck as your credit for the loan from subprime borrowers who specialize in approving such finance.
No job requirements to meet
Typically, you get approved for these auto loans up to a maximum of twenty percent of your monthly income before subtraction of taxes and other deductions. Moreover, there are no job requirements to be met to avail a ‘your job is your credit’ loan.
You only need to be working, and have to produce a recent pay stub as proof of your job. However those with seasonal, temporary, part time, cash/under the table or self-employed jobs cannot avail this loan.
Don’t confuse yourself by believing those lenders for poor credit who advertise that they accept all applications for loans, at interest rates as low as 3.9%. These ‘low interest rates’ are applicable only to applicants having the best credit. The applicants with low credit either don’t qualify for the loan or if they do qualify, end up paying the maximum interest rate your state offers.
Of course, your job is your credit card loans do come with an interest rate which is higher than the interest rate a person with a credit score of 750 or more receives. However if you make it a point to make your monthly payments on time, your payments will be reported to the credit bureau.
It helps improve your credit rating. So once you repay about two-thirds of the loan, you will be able to either refinance your present loan or opt to exchange your present vehicle to get a new car loan at a lower interest rate.
Don’t forget to first check your credit score
One important thing you need to remember if you opt for a ‘your paycheck is your credit’ car loan is to check your credit score before you begin your search. It also proves worthy if you check with your bank or credit union before starting as there is a chance that you will quality for a loan from them.
By requesting a copy of your credit report before starting your loan process, you get to thoroughly review it. Thus any mistakes found in it can be corrected to help increase your credit score. However you must be sure about the mistakes as any errors in reporting only lowers your credit score.
With so your job is your credit car lots having links with so many banks, credit unions car loans and other car loans programs from national finance companies, if you search right, you can now easily get a loan using your paycheck as your credit option.