Roadloans are a major on-line sub-prime lender who specialise in securing auto loans for people who have or have had credit problems. They have a strong consumer friendly to people who have a record of bad or poor credit, both in terms of auto loans and refinancing car loans as well.
Like a lot of auto credit companies, they are overly welcoming towards people who are deemed to have bad credit, and make a point of welcoming them and assuring them of a friendly and receptive attitude.
This approach which is both a marketing tool, and possibly a genuine way to appeal to people, any potential customer should be under no illusion that like any finance company Roadloans are interested in making money out of their clients, not in any fuzzy sympathy or kindness.
Whilst that may sound when applying for a loan cynical, it is also worth bearing in mind that any decent auto credit company will value customers who they can attract and keep.
Anyone with bad credit is likely to be a valuable source of income for them, short-term and long-term, and it is in the company’s interests to treat them as fairly as possible.
1. Applications / Bad Credit
Roadloans do focus on a number of areas of auto credit, namely new and used car loans, by a car with bad credit, getting a car loan with no credit, car loans after bankruptcy and auto refinancing.
They spell out very clearly that anyone with bad credit is likely to face higher interest charges, and discusses ways that the overall package can be minimised through things like making a sizeable down payment, or encouraging a cosigner with a healthy credit record to participate in the loan agreement.
They also make a distinction between someone with bad credit and someone with no credit history. Many people do not have any credit history either because of their age, or because of their lifestyle which has meant they have had no need to borrow money for a significant period of time.
People with no credit history can be encouraged to build up a healthy credit score in fairly simple steps over a period of time, which can significantly reduce costs but short-term and long-term.
The various options regarding bankruptcy are discussed, as well as its potential effect on someone’s credit history as well as their life and personal situation generally. Bankruptcy can be one of the most major emotional traumas in life, and needs to be managed as sensitively as possible.
2. Roadloans Reviews / BBB
One of the problems when using any type of online finance website is credibility, and one of the main ways of helping towards establishing that are genuine customer reviews. These are very difficult to assess for any company.
People like reviews. They instinctively trust them unless they are obviously over the top. The problem is that genuine reviews can be hard to gauge as to whether they have come from satisfied customers or are effectively written by the company through its agents or PR company.
Bad reviews are much more likely to be genuine, as it is an option people to vent their frustration at what they perceive as bad customer service or poor quality work or advice.
As such getting genuine reviews as a guide towards a company’s credibility can be difficult.
Roadloan reviews on trust pilot tend to run to over 1000, which is probably a good sign, with over 70% rated as excellent and only 6% graded as bad. Potential customers will have to draw their own conclusions.
What can always be gauged from reviews points at the individual had not thought of in terms of potential areas either to do with applying for a loan or managing a loan once has been arranged. These points can highlight areas of concern or guidance needed that can often be significantly beneficial.
Another good source of reviews is the Better Business Bureau, as well as organisations such as Consumer Reports. Bear in mind when applying for a loan what is important to you in terms of size of down payment, interest rates and how to manage the loan once it is finished, including any penalty for paying off the loan early.
Roadloans has access to a wide range of dealerships across the US, and applying online and getting approved online before purchase means that the customer has benefits of pre-approval, in the same way as if they were arranging dealership financing with one of the major companies such as Ford or GM.
The advantage of pre-approval is at the customer knows how much they have to spend and view vehicles priced accordingly. The downside of pre-approval is at the giver ship knows how much the customer has to spend as well, and can price vehicles accordingly or negotiate knowing the customers upside and downside.
A dealership can be located through the readloans.com website, and once located it is a good idea to view the dealers inventory and see what sort of vehicles they have and which ones seem appealing to the individual customer. The more negotiations that can be done over the phone or online before visiting the dealership is always a good idea, as it gives the customer a much greater sense of control over the whole process.
4. Login / Account
Potential customers are invited to apply online for a loan, and in the process generates an account for themselves. If approved this account can be used to manage the loan, in terms of viewing and receiving statements, managing payments and being able to contact customer service.
It is worth bearing in mind that RoadLoans offer six types of payment options, online payments, AutoPay, payment by phone, mail, MoneyGram and Western Union. With most of these payments some type of fee may also be charged, irritatingly referred to as a convenience fee.
Arranging a simple and convenient way to pay monthly instalments is really important, both for peace of mind and because late payments can incur additional interest charges, and late payment charges as well. These can accumulates quite quickly and can increase the pressure on the loan quite considerably.
Many auto credit companies shy away from the issue of refinancing loans, but the option to refinance is a crucial one to many people who have a bad credit or poor credit history. They may need to refinance an original loan because their credit has deteriorated, or something as happened to their financial situation that necessitates a change.
They may will need to lower their monthly payments, or extend the term period of the loan. This can normally only be done through refinancing.
On the other hand, someone who has applied for a loan with bad credit and has done work to repair their credit account may well look at some point to refinance that original loan because they will be able to get a better interest rate, or better terms and conditions.
They may also wish to renegotiate or refinance loan in order to release a cosigner who may have been an original dual applicant.
Refinancing a loan can be a fairly straightforward process in one sense, in that it should be done not in the same way as an application for an original loan
Roadloans Loan Calculators
Loan calculators are encouraged by both lenders and customers, as it seemed to give a very simplistic sense of what a loan is going to cost you. Whilst the figures arrived at using a loan calculator can be accurate, they do not always tell the whole story.
The loan calculator on the roadloans website has a number of different options. It has a car affordable and calculator, and auto loan payoff calculator, an auto loan calculator, and auto refinance calculator and a fuel savings calculator.
Whilst all of these can be helpful, what they do not show charges such as auto insurance, gap insurance, servicing and maintenance costs, dealership fees, late payment charges etc. Any applicant should also be able to do their own budgeting plans in terms of their own individual finances to see how much they can afford to repay on a monthly basis.
This should make allowances for changes in the individual circumstances by way of salary increase or decrease, increased or reduced hours at work or other costs such as tuition fees or increased medical bills.
Whilst no one likes to look at these things, undertaking any loan especially for someone who has a bad credit history, they are an incredibly important part of a realistic assessment as to whether or not someone should be lent money, and if so what terms and conditions.
Roadloans is owned by Santander, and mail should be sent to the following address
Santander Consumer USA Inc P.O. Box 961245 Fort Worth, TX 76161 Attn: SC USA
Applications – 888-276-7202
Customer Service – 888-222-4227
People often talk about disputing a credit report, but in fact it is in everyone’s interests including the credit rating bureau that the credit report is completely and 100 cent accurate, as it is used as the basis for producing a credit score which ultimately determines individuals ability to loan money from Ford credit or any other financial lender.
A credit report is effectively a dossier made up of information taken from the potential customers application form, and a wealth of other personal and financial and credit information, with current and historical.
Normally an individual is allowed to see a copy of their credit report from the three major credit bureaus for free once a year. This is really important as it allows them to check the information contained in the report, and make sure it is accurate and up-to-date.
There is certain information that although accurate can normally only be used for a certain length of time. Types of information that this relates to can include things such as bankruptcy. This means that after a certain number of years a credit bureau can no longer include these items as a basis for determining your credit score.
Can You Dispute A Credit Report
If you discover information in your credit report that you believe is inaccurate or up-to-date this is really important that you get back to the credit rating agency or bureau and tell them. It is in their interest that the information in the credit report is accurate and current, and if what you are saying to them is evidently provable than they should be open and willing to change it.
The problem in terms of disputing a credit report often comes when the customer disagrees with the value of the credit score that has been determined by the credit report, rather than information contained in the credit report itself.
This is a much trickier area, as the allocation of a credit score is a judgement by a credit rating agency, normally done by mathematical algorithms largely, which they believe reflects the accuracy of information they have about you.
Trying to get them to change their mind can be tricky, but if there are exceptional circumstances or reasons why certain areas of your credit report may look worse and they actually are then it is certainly well worth contacting them and telling them.
At the end of the day, a credit bureau is there to provide an accurate assessment of what they believe your credit worthiness is.
They should be open to including any information about you that is relevant, but there will also be wary of using a focus on their own internal workings and experience to help them determine what they believe to be an accurate credit score for you or anyone applying with you for credit or a loan.
People wanting to improve on looking to improve a credit score are almost invariably people who have some high level of awareness about what a credit report is, what constitutes it and how a credit score is ultimately determined. This information may have been gathered through a to experience, or simply through sense of necessity.
Improving a credit score can certainly be done by most people, although it takes time and is not an overnight fix.
Anyone wanting to improve a credit score should realise that the long-term nature of this means that they may have to make other choices or decisions about their current situation, if their credit score is having an adverse effect on their ability to apply for an auto loan with Ford credit, or for any other line of credit or loan application
Improve a Credit Score
Realising the need to improve a great score means an understanding of what one’s current situation is regarding a credit application.
If a poor or bad credit score is resulting in either refusal of loan applications, or terms and conditions be imposed that are inherently harsh or difficult to process, then it may be necessary for the individual to completely rethink what they are able to achieve short-term.
A credit score is ultimately a reflection of a huge amount of information about the individual, that reflects both their current and previous personal history, their current and previous credit history and a wide range of other publicly available information about them.
All of this information contributes to a dossier known as a credit report. The information in this report is then used by way of mathematical algorithms to assess what the credit bureau believes is the creditworthiness of the individual.
Improving a credit score effectively depends on understanding what it is that is acting against the individual in terms of the current credit history. This could be a number of areas about their personal life and employment or income, or about their current credit situation, or even their credit history.
Identifying whatever the problem is, as an example excessive use of payday loans, means that once individual has stopped this and taken steps to correct the information about it in their credit report it can begin to have an impact on improving their credit score, although this may take time to fall through into better quotations for financial offers and loan applications.
Anyone with a poor credit score will at some point want to do what they can to improve it, as it has a significant impact on that ability to borrow any type of auto loan with Ford credit or any other lender, And this can be done both on a short term and a long-term basis.
People have poor credit scores for a number of reasons, and often the term poor credit gets lumped in with bad credit and no credit at all. They are in fact completely different scenarios. Someone may have poor credit or bad credit because they have had debt problems in the past, or because they have had problems borrowing money and not built to repay it.
Someone with no credit may simply have not had an opportunity to try and borrowed money before, either because of age or because they have never had a need to. One of the options may well prove viable someone with no credit history is to use a cosigner.
How Do You Fix A Poor Credit Score
A cosigner is normally someone who agrees to cover the repayments on an auto loan in the event that the applicant is unable to meet them. The advantage of this obviously is it that can give someone with no credit history the opportunity to borrow.
Needless to say it is quite a risk for the cosigner, and is normally restricted although it doesn’t have to be, to family members or close relatives.
Fixing a bad or poor credit score has two particular areas.
Firstly is to check that the actual current credit report is accurate and up-to-date in terms of the information it has. Any errors in this can result in a mistaken credit score which can be costly in terms of arranging finance.
Secondly is to take measures to actively improve one’s credit history. This can be done in a number of ways by either pay off credit cards, or generally taking a number of steps to improve people’s lines of credit.
This is much more of a long-term process, but one started and under way can have an immediate impact in terms of benefiting an individual’s credit report and ultimately a credit score as well.
A credit bureau report is normally referred to as a credit report. There are three main credit bureaus in the United States and most countries broad, and they are used by Ford credit and most other finance institutions such as banks and credit unions to whom people turn when they want to obtain any type of credit or finance.
A credit bureau report is a document that is a compilation of a huge amount of information about individual, both personal and financial. This report is used as a basis for generating a credit score, which is then used as a basis for determining whether or not to give the potential customer any type of finance or credit, and if so on what terms and conditions.
A credit bureau report will contain information such as the individual’s name, their social security number, date of birth, their current and previous addresses and how long they have lived that, their current and previous employers and the length of employment, and whether the employment was part-time or full-time, their current patient and sources of income.
What is a Credit Bureau Report
The credit report will also look at the individual’s credit history, including all types of loans and debt agreements, including any issues such as late payments or defaults on loans.
It is important for any potential customer to obtain a copy of their credit report or credit bureau report and check that the information contained in it is accurate and up-to-date. Most people can access a copy of their credit report for free once a year from each of the major bureaus.
The reason this matters is not any to check that the information is accurate and correct, but because certain information that can have a major impact is normally only valid for a certain number of years. This means that after the time period has elapsed it must be removed from the credit report and cannot be used as part of the assessment.
A credit bureau report can be quite an intimidating document, but its accuracy is hugely important for all areas of a persons life revolving around credit and finance. It is crucially important therefore that it is checked at least once a year to make sure it is accurate and correct. C
A credit check is an assessment that will be undertaken initially by Ford Credit, and passed onto one of the three major credit rating bureaus, to assess whether or not a potential customer is deemed to be a good credit risk or not in terms of lending them the money to purchase a car or truck from Ford.
Ford operate a finance arm known as Ford credit, which offers dealership financing to potential customers who are interested in buying or leasing a vehicle from them. In order to know whether or not the customer is a good risk from a financial point of view for credit will undertake what is known as a credit check on individual.
This involves the individual fully out an application form, which they may do initially online or at a Ford dealership, which will detail a significant amount of personal and financial information about them.
What is a Credit Check
If they have a cosigner then the same information will be required but them, and if the purchase is being done on a commercial basis than information may will be sought about other partners or directors of the business.
Once the application has been processed it will be passed onto one of the major credit rating bureaus who will assess it alongside a range of other information that they have obtained through public records about the potential customer.
These records will then be collated into what is known as a credit report, which is a document which effectively evaluates your credit application. On the basis of this evaluation a credit score is generated.
A credit score is simply a number that is set on a scale between two other numbers to show its relevance in terms of being high or low, and thus giving information back to Ford credit as to the opinion of your creditworthiness.
This credit score is then used as a basis for determining whether or not to lend the customer money, and if so, what terms and conditions such as the size of the deposit, the interest rate etc.
Anyone buying a car is likely to use some type of personal loan, or a mix of cash and credit.
Personal loans can be what are known as either secured loans or unsecured loans, and when thinking of buying a car or a truck can be done directly with the manufacturers dealership, such as Ford, Nissan, General Motors etc, or with another institution such as a bank or a credit union. A secured loan is more normal when buying a car or truck, or any type of motor vehicle.
A secured loan means that the loan is based against the value of the car that it is being lent against. This means that in the event of the person taking out the loan defaulting on it or not being able to pay it back the car becomes the property of whoever lent the money and they can sell it in order to try and get their money back.
An unsecured loan is more common from banks and credit unions, and can be for any purpose at all subject to the approval of the lender. An unsecured loan does not have any collateral against it, and as such is likely to have a higher rate of interest than an unsecured loan, and generally less favourable terms and conditions such as the size of the down payment or the length of time of the loan period.
A personal loan that is taken out with someone such as Ford Credit or GM financial is for many people the most normal and straightforward way to borrow money to buy a new or used car, but as with all types of personal loans there are other options available, some long-term some short-term, some better than others !
Personal Loans and Payday Loans
Payday loans have a pretty bad reputation largely because of their huge interest rates, and are unlikely to be used when buying a type of car or motor-vehicle.
However some may consider them if they fall short during a particular month and had problems with your other commitments for their monthly repayment on a car loan. Payday loans market themselves as being a short-term solution to help bridge some temporary funding problems.
Whilst this may be true one sense, they can be hugely expensive to manage and should only be used as an absolute last resort. There are normally other options available including the option of refinancing the original loan should export first.
Personal Loans and Bad Credit Loans
Bad credit loans can be a real problem for a lot of people looking to buy or use any car or truck. People who have a bad credit history not only find it more difficult to obtain any type of credit or loans, but also more open to be exploited by people offering what may seem to be easy solutions.
The whole idea of bad credit is one that plays into the hands of people looking for some type of financial help us at the same time feeling grateful for any type of loan or credit offered however poor the terms and conditions may be.
The real solution is to really examine the nature of your credit report credit history, and take a longer-term view to re-establish a good credit reputation and manage credit for much more effective and beneficial way.
Personal loans and On-line Loans
The growth of the Internet has spawned a whole range of on-line loan companies and businesses, many of them offering supposedly cheap and easy solutions to anyone looking to arrange finance to buy a car or truck with a personal loan.
The problem with a number of these websites is very exactly who you are dealing with. If the website is a front for a legitimate bank or credit union than there should be no problems.
If it is a purely on-line company that can be trickier as they will our a considerable amount of personal and financial information from you in the first place by way of application, and in the event the application is successful, there may be problems further down the line in terms of contacting them and dealing directly with any personnell.
Personal Loans and Small Loans
Small loans may seem small at the time, but can quickly go if they are potentially payday loans is referred to above, where the interest on explode very quickly and turns what looks like a fairly small loan or advance in something actually quite huge. When considering a personal loan to buy a car or truck try and stick to auto dealerships such as Ford and General Motors, or the more traditional routes such as a bank or a credit union. If emergency cash is needed by and use a credit card if possible, or some other type of temporary bridging facility.
Personal Loans and Quick Loans
Personal loans that are advertised as quick loans often come under the same banner as small loans and payday loans.
The indication in the very name quick loans is that there will be an easy and quick decision made, can often appealing to people who have a bad credit history or who fear a lengthy investigation that finances prior to being able to borrow any money.
Any reputable leader be it Ford Credit or General Motors is likely to consider an application form reasonably quickly as it is no interests to come to a decision and let you know what that decision is. Anyone advertising an incredibly quick loan may do it quicker, but odds are they are likely to charge a much higher rate of interest or impose much less favourable terms and conditions.
No Credit Check Loans
Any loan provider seeking to entice custom by way of making a point that they do not carry out a credit check either has money to give away (which is unlikely !) or is in some way looking to attract people who are vulnerable because they have a poor bad credit history and believe that any credit check will simply stop them being able to have a personal loan.
Anyone with a poor credit history or bad credit looking to obtain a personal loan would do well to investigate their own credit report first, and do what they can to improve their credit score and then shop around.
Even someone with bad credit may well contain some type of personal loan from a reputable financial institution, even if the rate of interest is higher than it would be otherwise. In the long term this is likely to be a much more beneficial solution financially.
Personal Loans Low Interest Loans
Low interest loans obviously have an attraction, just be aware that there are normally other terms and conditions which will compensate for a lower rate of interest than would otherwise be the case.
Sometimes low interest loans are aimed at people who have an exceptionally high credit score, and are deemed a very good risk to lend money to. At other times, low-interest loans are affected subsidised by acquiring a much higher down payment, or a significantly longer period of a loan term.
The thing to watch for these type of loans is whether there is any penalty charge that may be incurred if the loan is paid off early, which can often be significant in terms of additional charges.
The idea of bad credit is something that can affect many people – knowing what it is and how to fix it can make a real difference when buying or leasing a car.
Key to understanding what bad credit means is understanding the idea of a credit report, and how that credit report generates a credit score that is then used as a guide by car manufacturers such as Ford Credit, GM Financial as to whether or not to lend you money and if so on what terms and conditions.
A credit score is essentially a number between a fixed range of two other numbers that gives a guide as to the credit rating agencies opinion about your creditworthiness. From this stands the notion of good and bad credit.
This idea of good and bad credit is to some extent true, but that is often a lot of flexibility in the system that means the numeric idea behind it should not be seen as too rigid.
Bad Credit – FICO Sore and Vantage Score
Fico is perhaps the most well-known scoring system, the other one that is also widely used is the vantage score.
Both systems use a scoring range of between 300 and 850, with the ratings system adjusted accordingly, implying that a score that is bottom to mid of this range is poor or bad credit, whilst a score ranging from the middle of the range to the top is a good or excellent score.
Naturally people look to the scoring system as almost an exact science, and whilst it’s understandable it can also be used to literally.
Whilst the scoring system is used to determine creditworthiness, a lender will often take other factors into account on the individual situation, and will also base their decision differently depending upon what the money is to be used for, and whether or not the loan is a personal secured loan or an unsecured loan.
In reality, there is also quite a lot of negotiating that can be done around the idea of a car loan, given the different components of a down payment and length of term of the loan, and options such as having a cosigner guarantee the loan.
Bad Credit – What Impacts a Credit Score
The main credit bureaus will have slightly different assessments of how to generate a credit score, and different lenders will use a credit score and relating information differently. However, there are a number of factors that affect a credit score.
Wells Fargo have given the following formula as a guide, and it is useful as such. According to them 35% of your score is based on your payment history, 30% is based on current debts, 15% is determined by your credit history, 10% is allotted to new credit applications and 10% is about types of current credit.
A lot of what affects your credit score is common sense, and anyone with a bad or poor credit rating would do well to understand the mechanics of credit and do what they can to improve their credit report and subsequent credit score.
Bad Credit and No Credit.
People often assume that these two are the same thing as a fact they are not. A lot of young people started off a working life will have no credit history, and as such may be penalised unfairly when applying for a car loan or any other type of unsecured loan or credit agreement.
But are however a number of banks and financial restrictions will appreciate the difference between bad credit and no credit and make adjustments accordingly.
Anyone who is relatively young, say under the age of 25, and is looking to buy a car is going to be hit by significant insurance costs in addition to the cost of buying or leasing a car, and the idea of a cosigner can be a hugely beneficial addition to the whole process.
A cosigner will essentially take responsibility for making sure the loan is paid back, and they will be liable for the outstanding amount of the loan if payments are missed or repayment is not able to be made. Obviously this is quite a significant responsibility for the cosigner, and is normally done either by a parent or guardian or some other family member.
The advantage of a cosigner is at it allows someone else to buy or lease a car at a much more reasonable rate, and allows them to build up a credit history in their own right.
Improving Bad Credit
Anyone who considers themselves have a bad credit score would do well to do what they can to improve it. The first port of call is to obtain a copy of your credit report, and see what information is in there. Check that the information is accurate, and that any out of date information is removed.
Certain areas of inflation have a time bar on them as to how long they can be included in your credit report and you should be checked and removed as necessary. The other things that you can do all relate to improving how your credit is viewed by credit bureaus.
The sort of things they look for are prompt payment of bills, some type of regular payment history regarding to all direct debits and use of available credit. Taking time to update payments and clear debt can make a real difference.
In addition, doing things such as building up a positive credit history can help, although it can also take time. Having additional credit cards and personal loans that are secured can show a pattern of behaviour that demonstrates responsibility regarding money.
Having said that it is important not to take on additional debt or loans unless you have sufficient ability to repay them, otherwise she simply end up with a worse credit history than before. It is often possible to obtain credit cards that are either known as secured or pre paid.
A secured credit card me that is is essentially guaranteed against some type of deposit that you hold, often in a bank account. A prepaid credit card means that you have two load it with a certain amount of money before you’re able to use it, I can only use it to the extent of the funds secured on it.
Whilst both of these are a bit cumbersome, they do mean that you are able to use the basis of credit cards as a way of securing an improvement in credit history, and overcome some of the problems associated with bad credit. U