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 help you?
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 dull credit.
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 database. 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 vigilant consumer.