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Can You Decline an Approved Auto Loan?



If you apply for a car loan and later decide you don’t want it, or you don’t like the terms, then you can decline the offer. However, once you’ve signed any paperwork, you’re agreeing to the contract, and there’s no more “declining” the loan.

“No Thanks, Auto Lender!”

After you’ve taken your time and energy to apply for an auto loan, and you got the good news that you’re approved, you’re not obligated to accept the offer.

Lenders go through an underwriting process where they use your income, work history, credit history, and more, to determine what terms you can qualify for and if you’re eligible for a car loan. Once this is complete, they send you either a denial or approval.

If you get the approval and decide this loan isn’t for you, you can walk away. As long as you haven’t signed the loan agreement, you can contact the lender and let them know you’re not accepting the offer.

They’re not likely to need a full explanation, either. You can simply tell them you changed your mind, or decided not to purchase the car, or that you’re looking for a better deal. Some lenders may offer to negotiate terms with you if you present other loan offers, which could work in your favor. Who knows – maybe you’ll end up accepting the offer after some good ol’ fashioned haggling?

Will Declining a Loan Offer Hurt My Credit?

Can You Decline an Approved Car Loan?No, declining an approved car loan offer does not hurt your credit score. If you decided to not go through with the loan, nothing further is reported to the credit bureaus.

However, whether you accept or deny the auto loan offer, applying for a loan of any kind can damage your credit score slightly – usually around five to 20 points per hard inquiry depending on your current credit score and history. Hard inquiries only impact your credit score for up to 12 months, though.

What If I Took the Car Home?

If you already accepted a loan offer and took delivery of a vehicle, you can’t just contact the lender and back out. Once the contracts are signed, they’re legally binding.

Getting out of an auto loan after delivery isn’t like returning a pair of pants – you have to pay off the loan in some way to end the contract.

A few ways to get out of a car loan after delivery include:

  • Refinancing – If you like the vehicle, but not the loan, then refinancing could be the answer. Refinancing is replacing your old loan with a new one for the same car. The refinancing lender pays off your loan (if you qualify), and then you start a new loan with them, effectively ending your old contract.
  • Sell the car – If you can sell the vehicle for what you owe to the lender, then this could be an easy solution to getting out of an auto loan you’re unhappy with. However, if your car has negative equity, this may be tough since the value of your vehicle is less than the amount of your loan.
  • Trade-in – Trading in your vehicle for its full value doesn’t happen very often, since trade-in values are typically lower than a car’s retail value. However, you may find a dealer that’s willing to pay off your car loan and add any negative equity onto your next auto loan. This is called rolling over negative equity. But beware, this can lead to a high loan amount, more interest charges, and possibly getting stuck in another negative equity situation.

It’s not easy to get out of a car loan – especially if you just drove it off the lot. Before you sign the dotted line on any auto loan contract or purchase agreement, be sure to read everything carefully, ask any questions you may have, and keep your wits about you.

Looking for the Right Connections?

Deciding on where to get your next car loan can be stressful. It can be even more of a hassle for borrowers with less than perfect credit since many traditional lenders prefer high credit scores. But, here at Auto Credit Express, we want to make the search for a lender that works with lower credit easier through our nationwide network of dealerships.

Over the last 20 years, we’ve cultivated a network of dealers signed up with subprime lenders, all over the country. After you complete our free auto loan request form, we’ll get right to work looking for a special finance dealership that assists bad credit borrowers in your local area. Skip the search for a dealer and get started right away!

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Are Sallie Mae Student Loans Federal or Private?



When you hear the name Sallie Mae, you probably think of student loans. There’s a good reason for that; Sallie Mae has a long history, during which time it has provided both federal and private student loans.

However, as of 2014, all of Sallie Mae’s student loans are private, and its federal loans have been sold to another servicer. Here’s what to know if you have a Sallie Mae loan or are considering taking one out.

What is Sallie Mae?

Sallie Mae is a company that currently offers private student loans. But it has taken a few forms over the years.

In 1972, Congress first created the Student Loan Marketing Association (SLMA) as a private, for-profit corporation. Congress gave SLMA, commonly called “Sallie Mae,” the status of a government-sponsored enterprise (GSE) to support the company in its mission to provide stability and liquidity to the student loan market as a warehouse for student loans.

However, in 2004, the structure and purpose of the company began to change. SLMA dissolved in late December of that year, and the SLM Corporation, or “Sallie Mae,” was formed in its place as a fully private-sector company without GSE status.

In 2014, the company underwent another big adjustment when Sallie Mae split to form Navient and Sallie Mae. Navient is a federal student loan servicer that manages existing student loan accounts. Meanwhile, Sallie Mae continues to offer private student loans and other financial products to consumers. If you took out a student loan with Sallie Mae prior to 2014, there’s a chance that it was a federal student loan under the now-defunct Federal Family Education Loan Program (FFELP).

At present, Sallie Mae owns 1.4 percent of student loans in the United States. In addition to private student loans, the bank also offers credit cards, personal loans and savings accounts to its customers, many of whom are college students.

What is the difference between private and federal student loans?

When you’re seeking financing to pay for college, you’ll have a big choice to make: federal versus private student loans. Both types of loans offer some benefits and drawbacks.

Federal student loans are educational loans that come from the U.S. government. Under the William D. Ford Federal Direct Loan Program, there are four types of federal student loans available to qualified borrowers.

With federal student loans, you typically do not need a co-signer or even a credit check. The loans also come with numerous benefits, such as the ability to adjust your repayment plan based on your income. You may also be able to pause payments with a forbearance or deferment and perhaps even qualify for some level of student loan forgiveness.

On the negative side, most federal student loans feature borrowing limits, so you might need to find supplemental funding or scholarships if your educational costs exceed federal loan maximums.

Private student loans are educational loans you can access from private lenders, such as banks, credit unions and online lenders. On the plus side, private student loans often feature higher loan amounts than you can access through federal funding. And if you or your co-signer has excellent credit, you may be able to secure a competitive interest rate as well.

As for drawbacks, private student loans don’t offer the valuable benefits that federal student borrowers can enjoy. You may also face higher interest rates or have a harder time qualifying for financing if you have bad credit.

Are Sallie Mae loans better than federal student loans?

In general, federal loans are the best first choice for student borrowers. Federal student loans offer numerous benefits that private loans do not. You’ll generally want to complete the Free Application for Federal Student Aid (FAFSA) and review federal funding options before applying for any type of private student loan — Sallie Mae loans included.

However, private student loans, like those offered by Sallie Mae, do have their place. In some cases, federal student aid, grants, scholarships, work-study programs and savings might not be enough to cover educational expenses. In these situations, private student loans may provide you with another way to pay for college.

If you do need to take out private student loans, Sallie Mae is a lender worth considering. It offers loans for a variety of needs, including undergrad, MBA school, medical school, dental school and law school. Its loans also feature 100 percent coverage, so you can find funding for all of your certified school expenses.

With that said, it’s always best to compare a few lenders before committing. All lenders evaluate income and credit score differently, so it’s possible that another lender could give you lower interest rates or more favorable terms.

The bottom line

Sallie Mae may be a good choice if you’re in the market for private student loans and other financial products. Just be sure to do your research upfront, as you should before you take out any form of financing. Comparing multiple offers always gives you the best chance of saving money.

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Tips to do some fall cleaning on your finances



Wealth manager, Harry Abrahamsen, has five simple ways to stay on top of the big financial picture.

PORTLAND, Maine — Keeping track of our financial stability is something we can all do, whether we have IRAs or 401ks or just a checking account. Harry J. Abrahamsen is the Founder of Abrahamsen Financial Group. He works with clients to create and grow their own wealth. Abrahamsen shares five financial tips, starting with knowing what you have. 

1. Analyze Your Finances Quarterly or Biannually

You want to make sure that your long-term strategy is congruent with your short-term strategy. If the short-term is not working out, you may need to adjust what you are doing to make sure your outcome produces the desired results you are looking to accomplish. It is just like setting sail on a voyage across the Atlantic Ocean. You know where you want to go and plot your course, but there are many factors that need to be considered to actually get you across and across safely. Your finances behave the exact same way. Check your current situation and make sure you are taking into consideration all of the various wealth-eroding factors that can take you completely off course.

With interest rates very low, now might be a good time to consider refinancing student loans or mortgages, or consolidating credit card debt. However, do so only if you need to or if you can create a positive cash flow. To ensure that you are saving the most by doing so, you must look at current payments, excluding taxes and insurance costs. This way you can do an apples-to-apples comparison.

The most important things to look for when reviewing your credit report is accuracy. Make sure the reporting agencies are reporting things actuary. If it doesn’t appear to be reporting correct and accurate information, you should consult with a reputable credit repair company to help you fix the incorrect information.

4. Savings and Retirement Accounts

The most important thing to consider when reviewing your savings and retirement accounts is to make sure the strategies match your short-term and long-term investment objectives. All too often people end up making decisions one at a time, at different times in their lives, with different people, under different circumstances. Having a sound strategy in place will allow you to view your finances with a macro-economic lens vs a micro-economic view. Stay the course and adjust accordingly from a risk and tax standpoint.

RELATED: Financial lessons learned through the pandemic

A great tip for lowering utility bills or car insurance premiums: Simply ask! There may be things you are not aware of that could save you hundreds of dollars every month. You just need to call all of the companies that you do business with to find out about cost-cutting strategies. 

RELATED: Overcome your fear of finances

To learn more about Abrahamsen Financial, click here

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How to Get a Loan Even with Bad Credit



Sana pwedeng mabura ang bad credit history as quickly and easily as paying off your utility bills, ‘no? Unfortunately, it takes time. And bago mo pa maayos ang bad credit mo, more often than not, kailangan mo na namang mag-avail ng panibagong loan. 

Good thing you can still get a loan even with bad credit, kahit na medyo limited ang options. How do you get a loan if you have bad credit? Alamin sa short guide na ito. 

For more finance tips, visit Moneymax.



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