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Think About These 5 Things Before You Repair Your Car



If you’re experiencing issues with your vehicle, there comes a point when you have to ask yourself, is it even worth getting this fixed? If you’re not sure whether or not you should sink more cash into your car or start saving for your next one, we’ve got some pointers that could make your choice a little easier.

To Repair or Not to Repair

When it comes to getting your vehicle fixed, sometimes, there’s only so much you can do, especially if you’re driving a car that’s getting on in years. The average age of vehicles on the road across America is around 12 years old. That means there are a lot of people driving cars that have been on the road for over a decade!

So, how do you know whether it’s time to trade in or keep up with the fixes? Ask yourself these five questionss to help you decide.

  1. Think About These 5 Things Before You Repair Your CarIs your vehicle operation impaired or unsafe to drive? If a problem with your car is impairing operation and/or making it unsafe to drive, it’s definitely important to take care of the issue so that you can take care on the road. If you can’t safely drive your vehicle, get it checked out. It’s the fix that could determine whether you sink the money into this car or your next.
  2. Is the vehicle under warranty? This seems like a no-brainer, but if you have the right warranty coverage, getting an issue fixed can be the right choice. Even if you ultimately decide you need a newer car down the road, if you have a fixable issue that’s covered under a service you already pay for, such as an extended warranty, it can help you patch things up so you have a little longer to save.
  3. Is the repair covered? Whatever is wrong with your vehicle, there isn’t a guarantee that a particular issue is covered under warranty. Warranties aren’t one size fits all, so if you’re having a drivetrain issue and only have bumper-to-bumper coverage, you need to check with your service provider first to see if your issue is something that’s covered.
  4. Is the repair more than the car is worth? If you find out that whatever issue your vehicle is having potentially costs more than the current trade-in or book value on your car, you may want to consider investing in your down payment savings for your next vehicle. If you can patch things up cheap and keep driving safely, it might be worth it to fix it. But if you can’t safely drive until a major fix is performed, weigh your options carefully.
  5. Can you realistically get another car? It can be troubling if you know it’s time to start the transition to another vehicle, but aren’t sure you have the means to do it. Often, this comes down to whether or not you can get an auto loan. If you’re driving a used car and it’s time to put it out to pasture, you might have more options than you know when it comes to getting into your next auto loan.

Don’t Leave Yourself Guessing

If you’re not sure whether or not to sink any money into vehicle repair, you need to ask yourself if this fix would change anything about the way your car drives or your ability to drive it safely. All vehicles experience wear and tear over their lifetime. Typically, regular maintenance can help you reduce the need for major repairs, but the older a car is, the more chance there is for a breakdown.

If the cost to repair is more than the value of your vehicle, it might be time to throw in the towel. However, many repairs can be covered under warranty, which helps you pay for the cost of major repairs when you pay a monthly premium.

New cars come with standard manufacturer warranties, but used vehicles can get coverage, too. The coverage you can get for a used car is called an extended warranty, or vehicle service contract, which are sold by independent insurance agents or third-party companies. They’re also often offered to you at the dealership if you’re taking out a loan.

Extended warranties are great for peace of mind, and can save you money when it comes to out-of-pocket repair costs. However, a service contract may not pay for itself, or sometimes even be needed at all. Whether or not the cost is worth it to you depends on the type of person you are.

Finding the Solutions You’re Seeking

If you can’t deny any longer that the time has come for a new car, but are worried about your credit situation standing between you and an auto loan, don’t be! There are plenty of car loan options available, even for people whose credit has seen better days.

When you need an auto loan, your first step should always be checking your credit reports and getting your credit score. If you don’t know where you stand, you won’t know which option offers the better solution for you.

After you know what your situation looks like, you can determine where to start looking for your next car loan. Here’s a look at three main options:

  • Direct lenders – Banks, credit unions, and some online lenders are direct lenders. This means you apply directly with the financial institution, and once approved, you receive a check or approval letter which entitles you to spend up to a certain amount. This is often referred to as pre-approval, and it can be a great bargaining tool. However, it can also be more difficult to qualify for this type of financing with poor credit because these lenders tend to base eligibility heavily on your credit score.
  • Subprime lenders – Subprime lenders specialize in helping consumers with bad credit. They’re indirect third-party lenders that work with special finance dealerships. Subprime lenders have the means to assist people in many unique credit situations, including bad credit and no credit. These lenders don’t rely completely on your credit score, but it can factor into their decision. You also don’t meet directly with the lender, the special finance manager at the dealer acts as your go-between.
  • In-house financing dealerships – In-house financing dealers go by many names, including buy here pay here and tote the note dealerships. With this type of loan, the dealership is the lender, so they don’t use third-party information such as your credit reports when evaluating you. Typically, in-house financing lots rely on your income and a down payment to get you into a car.

Of these options, subprime lenders are often the best choice for consumers with bad credit. Not only do they generally provide the best chance at an approval, they give you the opportunity to repair your credit score with on-time loan payments. It can be hard to get approved with a direct lender with bad credit, while some in-house financing dealerships don’t report their loans to the credit bureaus, but subprime lenders do.

Why Subprime Auto Loans?

Subprime car loans come from indirect lenders that cater to less than perfect credit situations. These lenders provide auto loans to people who are in tough and unique credit situations, and/or those who’ve been turned down by traditional lenders at their bank or credit union. They work with a wide range of dealer special finance departments, which gives you a wider range of potential car loan and vehicle options.

Depending on your situation, you could qualify for an affordable new car, a certified pre-owned vehicle, or a used one. If you do get approved, an auto loan gives you the opportunity to build your credit over time with each on-time loan payment you make. When these payments get reported to the major national credit bureaus, they help build a positive payment history, which makes up 35% of your total credit score.

Ready to Make Your Choice?

If the repairs just aren’t worth the cost, it may be time to trade in your vehicle toward something more reliable. If you aren’t sure where to start looking for your next car, you don’t have far to go – we can assist you right here at Auto Credit Express!

We’ve gathered a nationwide network of special finance dealerships that work with subprime lenders to get bad credit borrowers into the auto loans they need. If you’re looking to get over your credit obstacles, just fill out our free car loan request form, and we’ll get to work matching you with a local dealer!

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Bad Credit

Is The No Credit Check Loan The Best Option For You? | Branded Voices



If you need extra cash and have considered applying for a loan even with a bad credit score, you might have already heard about the no credit check loan.

Image by Bermix Studio 

Many people opt for a no credit check loan as their last resort. Like any other loan options, a no credit check loan has its pros and cons. Knowing if this is the best option for you allows you to go consider both its advantages and disadvantages. 

But is it your best option? Is there another way to acquire cash without looking into your credit record?

The Advantages

Here are the other advantages of a no-credit loan:

No Credit Checks

You are considering this loan option because the lender will not bother to check your credit report. It doesn’t matter whether you have a good or a bad credit score as long as you are eligible and can comply with their requirements. 

This benefit is one reason why this loan option attracts many borrowers, especially those who don’t have an impressive credit score and those who are still building their credit records.

Other loan options will require you to provide a good reason why you are acquiring the loan. 

For example, lenders will ask you how you will use the loaned money aside from knowing your capability to repay the money you owe.  But with the no credit check loan, lenders will ask you this kind of question during your application. 

The Disadvantages 

Just like any other options available out there for you, a no credit check loan also has its disadvantages. These things may be huge factors for some consumers, while to others, they’re just minor inconveniences you need to deal with. 

Higher Interest Rates

One of the most common and obvious disadvantages of a no credit check loan is its higher interest rate. Since the lenders will not bother looking at your credit history and rating, they will impose a higher interest rate on your loan. 

The higher interest rates imposed are due to risks they take in lending you their money without even knowing if you can pay it back. This is a common rule for all lenders who offer a no credit check loan. 

Required a Minimum Loan Amount 

If you only need a small amount, a no credit check loan may not be the best option for you. Lenders require a minimum loan amount when you apply for a no credit check loan. Most personal loans with no credit check will require you to loan a higher amount than other loan options such as payday loans and single-payment loans. 

May Require A Collateral

Lenders may require you to have collateral as an assurance for the money you are borrowing from them. It is also to secure their part if ever you cannot pay back the cash you borrowed from them. If you default on your loan, the lender will forfeit the collateral. Collateral can be in the form of any valuable assets such as a house, vehicles, and jewelry.

Quick Process 

Another positive thing when acquiring a personal loan with no credit check is the speedy process. You can get the money in just a few minutes or hours as long as you comply with all of their requirements and are eligible for the loan.

Reminders Before Applying for This Loan 

There are things that you should watch out for when opting for this loan type, especially if you do it online, such as:

  • Watch Out For Fake Lenders

This is the risk associated with a no credit check loan. Some criminals use this to lure their victims for phishing and identity theft. Make sure that you choose a legitimate lender and never give out personal information prematurely. It is best to ask someone you trust for a recommendation or for help with securing a loan from a trusted lender.

  • Prepare The Requirements Ahead Of Time 

It is best to prepare all the requirements before applying for the loan to help you acquire the money quickly. Check your chosen lender’s website or print ads for a list of requirements they will need. 

Even though this loan option does not require a credit check, it does not mean you are guaranteed approval. If the lender finds out that you are not eligible for a loan, your application will be denied. 


Asking yourself if a specific loan option is good for you is one of the proper ways to assess if you should apply for it or not. This practice should be observed in applying for no credit check loans and other loan types available. Remember, not all loans are suitable for you. One loan may work better for others but may not work the same for you. Hence, be prudent and choose the loan option that suits best with your financial needs.

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Bad Credit

Learn to avoid these credit card habits before you regret making costly mistakes



Picture used for illustrative purposes only. Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt.
Image Credit: Reuters

Dubai: Many still decide to confront bad credit card habits only after they are thousands of dirhams in debt. Here we discuss some lessons many regretted not learning before making mistakes that proved costly.

Although credit cards offer convenience, security, and rewards, overspending with a credit card and the interest and fees can bury you financially. So it’s important to know whether you possess such habits in the first place.

Four questions to ask yourself first

If you don’t know whether you have a bad credit card habit here are four questions to ask yourself to find out. If the answer to any of the below is yes, you are inching towards a credit card debtpile.

1. Do you pay only interest fees or minimum payments when you send in your credit card payment?

2. Have you ever paid your credit card late because you didn’t have the money for the payment?

3. Do you use your credit card when you don’t have enough cash?

4. When your issuer raises your credit limit, do you spend more because you can?

Bad credit card habits

While common mistakes include habitually paying your credit card late and taking out costly cash advances on your credit card, here are some uncommon-yet-dire mistakes that may slip under any user’s radar.

Habit #1: Missing out unauthorised or fraudulent charges

Keep in mind that one of the main benefits to reading your credit card statement is, it is one of the best ways to catch unauthorised charges and billing errors.

Don’t check your credit card statement for your balance and payment information, review the entire statement to verify your account activity.

By routinely checking your online or physical statement, you can also find out well before hand if your credit limit was lowered since you last checked – as it can change because of your credit habits or your credit history.

Habit #2: Paying only the minimum can cost you dearly

It is evidently easier to make the minimum payment and this is a habit credit card companies profit from as well.

Although paying just the minimum is more convenient than to figure how much extra you can pay towards your outstanding credit card bill, keep in mind that when you’re making only the minimum payment, you’re not making much progress toward paying off your credit card bill.

Moreover, unless you have a very low balance or a zero per cent interest promotion, you’re probably paying much more in finance charges than you have to.

Habit #3: Using your credit card more than your debit card

While it’s recommended you use your credit card to amass cashback rewards or points and also pay off your credit card balance every month, you shouldn’t opt to use your credit card over your debit card, if those aren’t the reasons why you would go about using them.

Your debit card is your direct access to the funds you should use for everyday purchases, like groceries, gas, clothing, and other expenses. If you use your credit card, it should be a decision with a plan for paying off what you’re charging on the card.

Habit #4: If you are transferring balances just to avoid payments

Although promotions like balance transfers are a widely recommended strategy to pay off a high-interest rate balance on your credit card, matter experts reveal that if you’re in the habit of pursuing such promotions to avoid paying payments on your credit card, this leads to amassing long-term debts.

Financial planners reiterate that many don’t realise that balance transfers typically have fees that will increase your overall balance if you’re never making payments toward the transfer. Moreover, if you’re making purchases on the card with such a promotion, the problem gets bigger.

Expert tips to take control of these credit card habits

Lesson #1: Pay your credit card in full each month

The best way to keep your credit utilisation ratio low and avoid costly interest charges is to pay your credit card balance in full each month – which also means you also don’t incur any large due.

It’s effective to control spending by not spending more than you can comfortably pay down each month, as this helps you reduce the likelihood of developing long-running credit card debt.

If you want to take in one step further, setting a monthly spending limit that’s well within your budget increases the chances that you’ll actually be able to zero out your monthly balance and avoid interest charges.

Lesson #2: Keep your credit utilisation ratio low

What it means by ‘credit utilisation ratio’ is essentially the link between your credit card balances and your aggregate spending limit. For example, a Dh2,000 balance on a credit card with a Dh5,000 credit limit equates to a 40 per cent credit utilisation ratio.

As a rule of thumb, your credit utilisation ratio shouldn’t exceed 40 per cent, and keep in mind that high ratios may adversely impact your credit score.

Financial advisors recommend aiming for a 30 per cent credit utilisation ratio, as that gives you some leeway to cover urgent one-off expenses, which can come unexpectedly as a result of maybe losing your job during the ongoing pandemic.

Lesson #3: Setting up customised spending alerts

If controlling your credit card spending is burdening you, it has been widely advised to set up customised spending alerts.

This will let you know when you’ve made an abnormally large payment or exceed a certain balance threshold and you also can pair these data alerts with security alerts to help flag any sham spending patterns.

Lesson #4: Using credit card rewards and points to your advantage

If you have a rewards credit card, you can use it to your advantage. If you have a pure cash back credit card, use any cash rewards you receive to put toward your account balance or directly deposit it into your savings account.

Alternatively, if you have a rewards points credit card, you can use your rewards to buy discounted gift cards to the stores you know, which will help save on future purchases without having to use your credit card.

If not, you could always redeem your reward points for cash redemption to put into savings or towards your account. However, ensure you know when your rewards expire to get the most out of them financially.

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When Can I Get an Auto Loan After a Repo?



There’s nothing saying you can’t apply for an auto loan immediately after a repo, but the tough part is actually being able to qualify for the loan. Since many auto lenders don’t approve borrowers with a repo that’s less than a year old, you may have to consider in-house financing.

Repossessions and Your Next Car Loan

Unfortunately, most traditional auto lenders don’t work with borrowers that have a recent repo on their credit reports. When we say traditional, we’re referring to lending institutions such as banks, credit unions, online lenders, and the captive lenders of some automakers. These lenders often require a good credit score and clean credit reports.

Where does that leave you? Well, likely in-house financing is the next logical step if you need a car loan after a repossession.

More on In-House Financing

Buy here pay here (BHPH) dealerships use in-house financing. This way of auto financing involves working with the dealer who’s also your lender. There’s no need to find a third-party lender or preapproval – the dealer takes care of all that. This setup can be convenient, and often, borrowers are able to walk away with a vehicle the same day they first set foot on the lot.

Since these dealers may not check your credit reports to determine your eligibility for auto financing, your recent repossession generally isn’t an issue. If you can meet income requirements, prove you have stable work, secure auto insurance, and prove your identity, you might get into a vehicle after a repo with in-house financing.

Here are a few more details on in-house financing:

  • Used cars only – BHPH dealers only offer used vehicles. However, used cars are a good option for bad credit borrowers. They’re almost always less expensive than a brand-new car, and affordable is a good price when you need to get back on your feet after a repo.
  • Anticipate a higher interest rate – Without a credit check, lenders are taking a risk approving a car loan without knowing much about your credit history. To make up for this, they tend to assign higher interest rates. A high interest rate may be considered a good trade-off for an auto loan with bad credit in many cases, especially if you heavily rely on a vehicle to get by.
  • Credit repair may not be an option – If you get an auto loan with a lender that doesn’t check your credit, it’s a possibility that your on-time payments aren’t going to be reported to the credit bureaus. If you want to repair your credit with a car loan, ask the lender about their credit reporting practices before you sign on the dotted line.
  • Down payments are required – Few things are certain in the auto lending world, but one thing you can count on is needing a down payment if your credit is less than perfect. BHPH dealers often require a down payment of up to 20% of the vehicle’s selling price.
  • Prepare your documents – While a BHPH dealer may not check your credit, they’re likely to ask about your income and possibly your work history. You need proof of income to qualify for a car loan, no matter what lender you work with, so prepare at least a month of computer-generated check stubs. If you don’t have W-2 income, have copies of your last two to three years of tax returns.

Looking Forward After a Repo

When Can I Get a Car After a Repo?After one year, your auto loan options open up a little bit more and you’re more likely to qualify for a subprime car loan. Subprime lenders are equipped to assist bad credit borrowers. These lenders offer you a chance for credit repair because they report their loans and work with poor credit borrowers.

If you need a vehicle quickly, a BHPH dealership could be your first step in getting back on the road. Once some time has passed, and your repossession loses some impact on your credit reports, you can try for an auto loan that has the potential to repair your credit.

Here at Auto Credit Express, we know a thing or two about bad credit auto loans, and we have a nationwide network of dealerships that assist bad credit borrowers. We aim to match consumers to dealers in their local area that help with credit challenges. If you’re in need of auto financing, start right now by filling out our free auto loan request form. We’ll look for a dealer in your local area at no cost and with no obligation.

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