The Car Loans Process Explained

PR Log (Press Release) – Sep 16, 2009 – Many individuals are becoming aware that securing car loans (http://www.capitalcarloans.com) is a more involved process than it was even a couple of years ago. As loan officers deny car loans by the truckload, people are having to become more aware of their credit score. Your credit score can be increased with a few simple strategies that will improve your chances for obtaining car loans. Even if you can't raise your credit score enough for bank car loans, you can improve it to obtain lower interest rates with online financing sources.

FICO Score Basics:

Your FICO score is an involved calculation that measures your credit worthiness. The higher your score, the easier it is to obtain mortgages, car loans, and other forms of credit at low interest rates. Obviously, the lower your score is on the FICO scale, the more difficult it is to secure car loans (http://www.capitalcarloans.com) at a competitive interest charge.

FICO scores range from 300 to 850 points:

-  A score over 750 has excellent credit
-  720 - 750 has good credit
-  660 - 720 is average
-  660 and below is considered bad credit.
-  If your score is at 300 you're likely reading this from a prison cell.

These days, a FICO score in the 660 range may cause individuals to be denied car loans (http://www.capitalcarloans.com) due to the tightening of lending policies. If you find yourself being denied car loans, there are some effective strategies to boost your score.

Boost Your FICO Score:

Here are some strategies to raise your FICO rating. It may not make any difference with your bank; however, it will help in securing a competitive interest rate with other sources of car loans.

-  You are allowed 1 free copy of your credit report each year. Get yours and review the contents. Look for anything that is on there that shouldn't be. Car loans that you have paid but haven't been removed or items that don't belong to you.
-  Contact companies that you still owe money to and arrange a payment plan. In some cases you can negotiate a "settlement" amount that reduces the debt if you pay in full.
-  Pay down your credit card balances if you are running at or near your credit limit. Having unused credit has a positive effect on your FICO score. Having a credit limit of $5,000 and only using $1,000 of it in any month shows that you are responsible with credit.
-  Be sure to pay all of your bills, current car loans, and mortgages on time each month. If you are having trouble meeting your current obligations in a timely manner, how are you going to manage additional car loans?

Online Car Loans are Fast and Easy:

Now that you have raised your credit score, online car loans (http://www.capitalcarloans.com) are available to you at competitive rates and flexible terms. If you need that second car or have to replace your current vehicle for more reliable transportation, car loans from an online vendor is a viable option.

Capital Car Loans is your best source for car loans and bad credit car loans online. If you have really bad credit, bankruptcy, poor credit or a low credit score we have car loan credit programs that can provide financing with low interest rates that will help you buy the new car you really want at payments you can afford. More information about Capital Car Loans can be found at http://www.capitalcarloans.com.