HOW TO FIND LEGITIMATE ONLINE BAD CREDIT AUTO LOANS
The Internet has made auto loans more available to everyone. A
number of lenders today are operating online, offering quick
application process and approval-even to those with bad credit.
But how many of these online lenders are legitimate? Can they really
We give you some practical tips on how you can make sure that an
online bad credit auto lender is legit.
But before you begin your search, have your numbers ready. Find out
how much car payment you can afford considering your other monthly
expenses like gas, insurance, rent, car maintenance, and electric
and water bills.
No matter what the lender says you can afford, never go over the
amount you have determined beforehand.
Things to Look At
Now that you have your numbers in place, it’s time to find a lender.
As you search, be aware that there are a lot of unscrupulous lenders
operating in the industry. And a number of them target people with
Here are a few things to consider when finding a legitimate online
bad credit auto loan:
- LOCATION. Go to the Contact Us or About page of the lender’s
website. Legitimate online lenders must have their business address
and contact numbers indicated there. The unavailability of these
pieces of information makes an online lender less reliable.
- SECURITY. The website of a legitimate online lender must be
secured. That means that the personal information you will be
providing them must remain confidential and kept.
The website must have https:// at the beginning of its web address.
There should also be trust logos like McAfee and Truste. These logos
must direct you to a confirmation page when clicked.
- BUSINESS REGISTRATION. Is the lending company you’re looking at
permitted to operate in your state? Is it a registered business? You
can check with the agency or department that oversees financial
institutions in your state.
- WEBSITE REGISTRATION. You can investigate about an online lending
company further by looking their website up on WhoIs.com or any
similar tool. You can see there the owner of the site and how long
has the website been in the web space.
- RECOMMENDATIONS. If you have a relative or friend who recently
received an auto loan from an online lender, ask them for
recommendations. It’s a smart move to go to a lender that someone
you trust has already worked with.
- BROKERS. Legitimate online bad credit auto loans are also
available through brokers who represent several subprime lenders.
These brokers will take your initial application and distribute it
to the lenders they think are most likely to approve your loan. The
lenders will then contact you directly to process your application.
- BETTER BUSINESS BUREAU. This is a resource with which
you can check for complaints and reviews about a company. You can
look up an online lender here and find out what others are saying
about it. The BBB also rates the companies in their
Not all companies not recognized by the BBB are fraudulent, though.
But the lack of such recognition makes them less credible.
- MEETING. Do not sign any contract without personally meeting
anyone from the lending company. Although the transaction is largely
online, you still have to meet the people behind the business. This
is one smart way of making sure that the online lender you’re
dealing with is legitimate.
These steps not only lead you to legitimate online bad credit auto
loans but also weed out dishonest lenders and scams. These entities
prey on unsuspecting consumers who desperately need a car and will
sign anything to get one.
Don’t let yourself fall into their ploys by being a wise and