How to avoid fees, qualify for low rates, and affordable payments
It's Not Just About Credit Score
You can have an 800 credit score from Credit Karma, Credit Sesame, or any other online credit company, but it most likely will not match the same score the banks use.
Each bank has its recipe for pulling your credit score based on your type of purchase. Banks are a bit more lenient when you purchase a necessity such as a house or a car for several reasons. Without too much detail, you need them to get to work and a place to live. They are also much easier to locate should you default. They know your home address and know your car will be home or at work. A boat and RV can be stored anywhere, including out of state. It can take years to locate, at which point they devalue. Another reason banks prefer to loan on necessities is that you cannot afford to lose them. They are generally the first thing you pay if you suffer financial difficulties. Boats and RV's are a luxury, last to pay, and a much higher risk for banks.
Boats and RVs are for pleasure and therefore rated differently. Each bank uses various credit bureaus. Some use Experian, some use Equifax, others TransUnion, and some use a combination. These bureaus will have different scores based on where your creditors report your history. Not all creditors report to all bureaus, and they do not report simultaneously, which will vary your credit score. Also included in the process is a model they use within these reports. Each model varies based on your purchase, such as what you are buying, how much it costs, and perhaps how much cash you are willing to risk in your deposit. It is more complicated than this, but you get the gist. Each model has a value used in the equation to determine your credit score.
Debt To Income Ratio (DTI)
As I said, you may have an 800 credit score in your findings but, one more thing banks will consider is your debt to income ratio, also known as DTI. DTI is how much you earn based on how much debt you owe. Your credit score may reflect an 800 based on your ability to pay over time. However, what type of loans are they, and how much room do you have within your DTI ratio to qualify for more debt. If you are an 800 with a 90% DTI, a bank will probably not give you that $50K boat loan.
Tips To Consider
Fico scores over 700 will typically be approved, however anything 760 and above will provide better rates.
Rule of thumb: keep credit card usage to 30% or less than the total credit limit.
Know ahead of time an approximate payment you will be taking on by using a payment calculator. This will help make your decision before applying.
Don't be discouraged if your application is turned down. Some banks will work with you if you are close to their qualification requirement. If you need help, find the right person who understands creative financing and who is willing to rehash the deal. National Dealer Direct will provide you guidance.
Ask about application fees and processing fees. They can be anywhere from $100 to $500. They will try to convince you that all lenders have these fees and you can't avoid them--this is just not true. We are $0 for application fees and $0 for processing fees.
If you fill out an application anywhere, they will more than likely do a "hard pull" on your credit. A "hard pull" will negatively affect your credit. Ask before you apply if this will be a "hard pull." Let them them know you do not want it to affect your credit and ask them to do a "soft pull" instead. Not many companies processessing loans will accomodate you and they may tell you that they cannot look at your credit unless they do a hard inquiry. That is false information--don't fall for it. Nation Dealer Direct will only do an initial soft pull everytime.
BEWARE
Most banks and lending institutions require their loan officers to reach a weekly/monthly quota based on how many credit reports they pull. In their eyes, the more credit scores, the more deals.
How We Work
National Dealer Direct, LLC is a husband and wife team, and we do not work on such quotas. Our goal is to help our customers buy their dreams at the lowest rate and payment affordable. We do not have an automated application system, we handle your credit with "kid-gloves," and we work directly with you through the entire credit process from start to finish.
Our first step is to run a "soft-pull" to obtain your credit score and determine how a bank will process your credit history. This picture is critical in deciding which bank will give you the best possible rate. We will then discuss the rate and payment that works for you, and upon your agreement, we will submit your info to the bank, where a "hard pull" will be completed.
NO APPLICATION FEES
NO PROCESSING FEES
LOW INTEREST RATES
FAST APPROVALS
QUICK TURN-A-ROUND TIME
FUNDS WIRED DIRECTLY TO THE SELLER
WE PROCESS THE ENTIRE LOAN FROM START TO FINISH
WE PROVIDE LOANS FOR ANYONE BUYING NEW OR USED BOATS ACROSS 50 STATES, FROM A PRIVATE PARTY, THROUGH A BROKER OR FROM A DEALER
CALL US IF YOU WERE TURNED DOWN.
WE WILL EXHAUST EVERY DEAD DEAL TO GET YOU APPROVED
(800) 240-1031
WE WORK 7-DAYS A WEEK ~ 365 DAYS A YEAR
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