Archive for the ‘Ask the Wizard’ Category

Alas, I understand it can be a perilous journey across the raging rivers and steep slopes of finance, so trust in me, your loyal Credit Wizard.

If you have a question about financing, you can submit your question to me at gladstonewizard@gmail.com.

Now, let me use my magical wand and cast a spell to cure all your credit woes:

Credit Wizard, can I get a loan with a limited credit history and without a co-signer?

Why of course, my loyal scribe! We finance people everyday with limited credit. But a trick to get the best rates will be to save up for a larger down payment. The more equity you have in the purchase, the more likely you are to get a better rate.

So if I happen to have no credit, how am I going to get approved for a car loan?

While it might seem to be as as daunting as slaying a mighty dragon, but it really is not. With the majority of car loan companies, being a wee young lass and having little to no credit is not a factor when it comes to granting an approval. Why is that? Well that’s because an auto loan is a secured sort of loan. The lending institutions are protected by the fact that if your loan does go into default they get to take your car. Usually auto finance companies will not require a cosigner for auto loans up to the $25,000 range.

Credit Wizard, can you sell a car when you still have a big car loan to pay off?

Let me dust off my ancient book of spells for the answer. As the vehicle owner, you can sell the car whenever you choose. You are liable for the car loan. If you are selling the vehicle for less than the loan, especially when you are upside-down on the loan and you owe more than the car is worth, you need to pay the difference to your lender.

When trading the car in to a dealership, in effect selling it to the dealer, the dealer should handle the loan payoff details. You need to inform both your lender and your state DMV that the vehicle is being sold. The lender will release the lien against the vehicle after they receive payment from the dealer. This is very common and we are equipped to handle all transactions such as these with no hassle.

That all is for now my friends as I travel back to the Misty Mountains to meditate about the questions of life, love, and good credit. If you have a credit question you would like answered, please submit it to the wizard at gladstonewizard@gmail.com.