Bad Credit or No Credit Car Loans - Are They Worth it?

Bad credit or no credit you still need a car loan. Millions of consumers face the problem of not qualifying for an auto loan because of their credit score or lack of credit history. There are solutions, but you want to make sure that you don't end up paying more in interest than the value of the car you purchase.

Just because you have a credit problem does not mean you have to accept a 20% auto loan. High interest loans will strain your budget and cause even worse problems down the road. Instead you should look for a lender or dealership willing to offer you a loan at only several percent higher than a conventional loan. As an example, if a bank will lend $25,000 at 6% for their credit worth customers you should be looking for an interest rate only several points higher.

Fortunately, dealers and lenders have formed networks across the country to help consumers find loans at reasonable rates. You only need to fill out one application which will then be submitted to the entire network. This way you will have the best chance of finding a loan that you can afford. In addition, the lender network can help you find the car you are looking for within your geographic area.

Driverloans is one of the largest and most established networks. There application takes less than several minutes to complete. You can find there application here Car Loan Application.

Recession Savings - Auto Insurance Savings Tips

During an economic downturn like we are currently experiencing it is critical to reduce all your fixed expenses. Re-evaluating auto insurance costs should be one of your first priorities. You can easily save around $400 a year on individual coverage and maybe as much as $1,000 a year on multi-car coverages.

Consider lowering limit coverages on your liability and comprehensive portions of your policy. You can also increase your deductible to help save a few hundred dollars a year. If you haven't compared rates in awhile you can also go to sites like Compare Auto Quotes and enter your zip code. You will then be shown a list of discount providers offering price comparisons within your area. By using these services you can typically save about 20% on your current insurance cost without having to change your current coverage limits.

You can also save money on your insurance by carrying only the minimum liability insurance required by the state. This is risky because it leaves you unprotected for damage caused to your vehicle and personal injury to yourself or your passengers.

I would recommend comparing rates from several national providers like Geico or AIG and consider a higher deductible. This could save you a significant amount of money.