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The Best Car Insurance in New York State

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If you’re looking for the best car insurance in New York, you’ve come to the right place. We created this guide to help you find the best car insurance provider for you in New York. To come up with this list, we’ve examined factors specific to each company, including customer satisfaction, financial strength, policy options, discounts, and of course, premium levels.

My top pick, and who I’ve used for years is Progressive. However, the single most important factor for getting the best car insurance at the most affordable rate is to compare quotes from several companies. Use the quote tool below from our car insurance partner. It provides a safe, secure way to save a whole bunch of time (and money!) shopping for car insurance.

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Compare Top 10 Car Insurance

The Most Important Factors When Comparing Car Insurance in New York

Because of the cost and complexity of car insurance in New York, you’ll need to be aware of several factors, then be ready to employ certain strategies:

Car insurance in New York is much more expensive than the rest of the country. The best strategy will be to shop between several insurance companies and take advantage of every discount available.

New York is a ‘no-fault’ state, which can lead to higher premiums and more complex policies.  You will need to know both the general car insurance laws in New York, as well as the companies that can best serve your needs.

The cheapest policy isn’t always the best.  If you go with the minimum coverage only, you may be exposing yourself to a big liability after an accident. You’ll need the best car insurance for your circumstances, which probably won’t be the cheapest.

Your coverage levels should match your net worth. One of the most important reasons to have car insurance is to protect your assets. If you have $200,000 in financial assets, you’ll be underinsured with the minimum coverage levels of “25/50/10” (see explanation under What You Need to Know About Car Insurance Laws in New York below). Minimum coverage is best for young drivers who have no assets.

Bundling will save you money. Most insurance companies will give you a substantial discount on your car insurance if you also have other policies with them. These include homeowner’s, renter’s, and sometimes business insurance.

Get special coverage if you use the vehicle for business purposes. If you drive for Uber on the side, you won’t be covered by standard car insurance policies. You’ll need to work with a company that specifically provides coverage for ridesharing. There are several on this list that do.

Keep your driving record clean to get the lowest premiums.  If you do have an at-fault accident or moving violation, look into completing an approved driver education course.

The 7 Best Car Insurance Companies in New York

We’re not going to keep you waiting! We’ll start this guide with a list of the seven best car insurance companies in New York – ranked in order. And we’re throwing in the main reason why we ranked each company the way we did.

Note on Policy Options: We’re not going to include minimum required coverages in New York, nor collision and comprehensive, since both are typical options offered by all insurance companies.

1. Travelers

The Basics:

Policy Options Policy Options Discounts
Gap coverage
Rental coverage
Roadside assistance
Accident forgiveness (one accident and one minor violation every 36 months)
Decreasing deductible ($50 every six months up to $500 you’re accident- or violation-free)
New car replacement (replace your new vehicle with a brand-new vehicle of the same make and model if yours is totaled within the first five years of ownership).
Discounts Multi-policy (bundling)
Multi-car
Homeownership
Safe driver (10% for no accidents in three years, 23% for five years)
Continuous insurance (up to 15%)
Hybrid/electric vehicle
New car
Pay in full in good payer discounts
Early quote
Good student
Student away at school
Driver training
IntelliDrive Program – uses a smart app to capture and score driver behavior, and could result in a 20% premium reduction.

Premiums: $1,544 (2nd lowest average premium on our list)

Customer satisfaction rating: 845 (2nd on the J.D. Power Survey)

Financial strength rating: A++ (highest rating issued by A.M. Best)

Why it Made the List

Travelers took the number one spot on our list because it’s strong in every category. It has the highest financial strength rating, ranks #2 in customer satisfaction, and offers the second lowest average premiums of any company on this list. The company also offers one of the more comprehensive packages of both policy options and discounts.

What Holds it Back

ConsumerAffairs.com gives Travelers less than two stars out of five based on customer reviews.

2. Progressive

The Basics:

Policy Options Gap coverage
Rental car reimbursement
Roadside assistance
Custom parts and equipment value
Rideshare coverage
Discounts Snapshot app ($145 average discount)
Bundle auto and property
Name Your Price tool (enter your desired premium, and Progressive will design a policy),
Multi-policy
Multi-car
Continuous coverage
Good student
Distant students (more than 100 miles from home)
Homeowner
Online quote
Sign online
Paperless
Pay in full
Automatic payment

It also offers large accident forgiveness if you have been a customer for at least five years, with no accidents in the last three years.

Premiums: $1,527 (Lowest average premium on our list)

Customer satisfaction rating: 815 (#9 on the J.D. Power Survey)

Financial strength rating: A+

Why it Made the List

Progressive offers the lowest average premiums in the state, which is, of course, a major draw for all consumers. Policy options are a bit on the slim side, but the company does offer coverage for ridesharing, like Uber and Lyft drivers. The company also has some of the most attractive discounts in the industry, including the Name Your Price tool and large accident forgiveness.

What Holds it Back

Progressive’s J.D. Power rating is dead last.

3. Allstate

The Basics:

Policy Options Rideshare coverage
New car replacement
Accident forgiveness
Drivewise app
Sound systems
Roadside assistance
Personal umbrella
Rental reimbursement
Classic cars
Car insurance for travel to Mexico
Discounts New car
Multi-policy
Smart student
Vehicle safety equipment
Early signing
Responsible payer
New car
Paperless
Safe driving club

Premiums: $1,572 (3rd lowest average premium on our list)

Customer satisfaction rating: 831 (#5 on the J.D. Power Survey)

Financial strength rating: A+

Why it Made the List

Much like Travelers, Allstate is strong in almost every category. That includes having the third lowest average premiums in the state. It offers many of the same policy provisions as other insurance companies on this list, but also has its unique car insurance for travel to Mexico. Otherwise, the company rates about the middle of the pack on customer satisfaction and financial strength.

What Holds it Back

Allstate doesn’t have quite as many discounts as its competitors.

4. New York Central Mutual

The Basics:

Policy Options Optional Basic Economic Loss (OBEL – extra coverage above PIP for lost income),
Supplementary uninsured motorist
Medical payments
Roadside assistance
Umbrella coverage
Rental car reimbursement
Conversion van coverage
Discounts Autopay
Driver training
Student away at school
Defensive driving course
Safety equipment
Multi-policy
Homeownership
New car
Pay in full
Senior discount
Good student discount
Claim free
At-fault accident forgiveness (claim free for five or seven consecutive years)

Premiums: $1,988 (6th lowest average premium on our list)

Customer satisfaction rating: 869 (#1 on the J.D. Power Survey)

Financial strength rating: A

Why it Made the List

Any company that has the #1 customer satisfaction rating for its state deserves to be on any list of the top auto insurance companies. NYCM also offers two programs not commonly provided by other insurers, including the optional basic income loss coverage and conversion van coverage. The latter is important because a van that has been modified to accommodate an impaired individual is not generally covered under personal auto insurance policies.

What Holds it Back

New York Central Mutual is easily the smallest company on this list and operates only in New York. If you move to another state, you’ll have to get covered with another carrier. The company is also on the higher end of the premium scale on this list, coming in at #6. It’s also at the low end of the financial strength rating, with a grade of “A”. That means it’s still a strong company, but a shade below the others on this list.

5. State Farm

The Basics:

Policy Options Car rental
Travel expenses for an accident more than 50 miles from home
Medical payments
Emergency roadside assistance
Rideshare
Sports cars
Antique classic cars
Small business vehicles
Discounts Accident-free
Defensive driving course
Accident prevention course
Safety equipment
Driver training
Good driver
Good student
Multi-car
Multi-policy
Student away at school
Steer Clear Safe Driver (complete education requirements and no at-fault accidents or moving violations in the previous three years – both met before turning 25)

Premiums: $1,943 (5th lowest average premium on our list)

Customer satisfaction rating: 845 (#2 on the J.D. Power Survey)

Financial strength rating: A++ (highest rating by A.M. Best)

Why it Made the List

State Farm ranks #2 in customer satisfaction and has the highest financial strength rating at A++. The company is also the largest single automobile insurance company in the country, which indicates a high degree of confidence that a large number of people place in State Farm. It appears on nearly every list of the best auto insurance companies in most states.

State Farm also offers unique policy options, like travel expenses for an accident, sustained more than 50 miles from home, and coverage for small business vehicles. On the discount side, they offer the Steer Clear Safe Driver program to help drivers under 25 lower their insurance premiums.

What Holds it Back

State Farm’s premiums are higher than some of the other carriers on this list, though they are still well below the statewide average. The company’s heavily advertised “Drive Safe & Save Mobile” program is not available in New York.

6. GEICO

The Basics:

Policy Options Emergency roadside assistance
Rental reimbursement
Mechanical breakdown
Motorcycles
ATVs
Recreational vehicles
Boats
Collector autos
Ridesharing
Commercial auto and driving in Mexico
Discounts Safety equipment
New vehicle
Good driver (five years accident-free)
Seatbelt use
Defensive driving
Driver’s education
Good student
Emergency deployment
Military
Multi-vehicle
Multi-policy

Premiums: $1,888 (4th lowest average premium on our list)

Customer satisfaction rating: 823 (#6 on the J.D. Power Survey)

Financial strength rating: A+

Why it Made the List

GEICO’s average premium in New York is well below the statewide average. On the discount side, we love the fact that GEICO publishes the percentage discounts you can expect. For example, you can save up to 25% for a driver-side airbag, and up to 40% for the full front seat.

GEICO also offers interesting policy options. Like Allstate, they extend auto insurance to travel in Mexico. They also add commercial auto coverage, and one we haven’t seen elsewhere – mechanical breakdown. You can use it in place of the car manufacturer’s extended warranty, and it can cover your vehicle for up to seven years or 100,000 miles (comes with a $250 deductible). It’s even available for leased cars that are less than 15 months old and have fewer than 15,000 miles.

What Holds it Back

GEICO ranks #6 in customer satisfaction among nine companies listed in the J.D. Power survey.

7. Liberty Mutual

The Basics:

Policy Options Medical payments (including legal fees and lost income)
Lower or eliminate your collision deductible
Lifetime repair guarantee
New car replacement
Better car replacement
Rental car reimbursement
Roadside assistance
Gap coverage
Original replacement parts for your car
Coverage for teachers (protection for your car on school grounds)
Driving in Mexico
Discounts Accident forgiveness
Multi-policy
Multi-car
Online purchase
Automatic payment
Pay in full
Online purchase
Paperless policy
RightTrack (save up to 30% for good driving behavior)
Homeowner
Active, reserve or retired military
Early shopper
Good student
Student away at school
Alternative energy vehicle
Safety equipment
Accident- and violation-free

Premiums: $2,046 (7th lowest average premium on our list)

Customer satisfaction rating: 819 (#8 on the J.D. Power Survey)

Financial strength rating: A

Why it Made the List

Liberty Mutual advertises “only pay for what you need”. We’re not exactly sure what that means since that statement is true of virtually all car insurance companies. There is the minimum legally required coverage, which you must purchase, then a laundry list of options you can choose – regardless of the insurance company.

Still, Liberty Mutual has some of the more interesting policy options, particularly when it comes to the maintenance of your vehicle. Of special interest are the lifetime repair guarantee (you must use an approved facility), new car replacement assistance, and the option to replace your car with a better car that’s one model year newer and has 15,000 fewer miles.

What Holds it Back

Liberty Mutual has the highest average New York auto insurance premiums of the seven companies on our list. It also ranks a disappointing #8 in customer satisfaction, and is on the low end of the financial strength rating, gathering only an “A”.

How We Found the Best Car Insurance in New York

In compiling our list of what we believe to be the best car insurance companies in New York, we’ve used the following five criteria to make that determination:

Policy Options

Virtually all insurance companies must offer at least the minimum coverage limits required by law in each state. But each company also can offer various options that are not required. These can include coverage for premium sound systems, classic cars, and specialty vehicles, ridesharing services, and umbrella insurance for high net worth individuals.

Discounts

The initial premium quote you receive from any car insurance company is only the starting point. From that base number, premium increases will be added for additional risk factors, such as driver history, the type of vehicle, and the number of miles driven. But car insurance companies will also provide discounts for certain features. These can include a safe driving history, bundling coverage with other insurance policies, multiple drivers and cars on the same policy, good student discounts, customer loyalty, vehicle safety equipment, and many more.

The more discounts a company offers, the higher it rates in this category. While we list the most common types of discounts offered by each insurance company, you should request a full disclosure of all discounts provided by your carrier, to take advantage of all that may be available to you.

Premiums

Cost is almost always the most important consideration when shopping for car insurance. While recognizing its importance, we caution that you do not make your car insurance decision based solely on the premium.

But recognizing that it is a central factor, we’re presenting the average premium charged to New York residents by each provider on this list. Since it’s only an average, it’s meant only to provide a ballpark estimate as a starting point. Exactly what you’ll pay for a policy will depend on the community who live in, your age, driving history, and other factors that are described in this guide.

The premiums shown for each company are based on data provided by The Zebra, which is determined to be a reliable source of pricing information.

The New York statewide average for car insurance premiums is $2,752 for 2020, which is well above the national average, but not nearly as high as the most expensive states. Each of the insurance companies included on our list is well below the statewide average.

Customer Satisfaction Rating

One of the most important criteria for assessing an insurance company is its customer satisfaction rating. The most important aspect of the rating is satisfaction with auto claims. After all, the whole purpose of buying insurance is the potential to pay claims. It’s the basic “product” all insurance companies provide.

For that rating, we are relying on the J.D. Power U.S. Auto Insurance Study, released in June 2019. More specifically, we’ve relied on the Overall Customer Satisfaction Index Ranking – New York Region.

best car insurance new york customer satisfaction

Insurance Company Financial Strength

In the search for the lowest possible car insurance premiums, most consumers completely ignore this all-important category. But it will do little good to have cheap insurance from a company that has financial problems. An insurance company’s ability to pay claims, and even to stay in business, is closely tied to its overall financial strength.

To determine the financial strength of each company on our list, we are relying on ratings provided by A.M. Best. The company specializes in rating the financial strength of insurance companies, particularly regarding a company’s ability to pay claims.

The higher insurance company financial strength ratings are as follows:

Superior: A+, A++
Excellent, A, A-
Good, B, B+

Companies rated lower than “A” are excluded from our list.

What You Need to Know About Car Insurance Laws in New York

Car insurance laws and requirements vary from one state to another. Regulations in New York are as follows:

State Minimum Insurance Requirements

The minimum New York State car insurance requirement is “25/50/10”, broken down as follows:

  • Bodily Injury: $25,000 per person in any one accident, or $50,000 for any injury resulting in death.
  • Bodily Injury: $50,000 for two or more persons in any one accident, or $100,000 for any injury resulting in death.
  • Property Damage: $10,000 per accident.

Bodily injury, more commonly known as liability coverage, pays for both injury and loss of wages to another driver or their passengers, as a result of an accident caused by you. The same is true of property damage. It will cover damage to another driver’s vehicle in an accident where you are determined to be at fault. It’s important to understand that property damage does not extend to repairing your own vehicle in an at-fault accident.

Uninsured/Underinsured Motorist – required for bodily injury only, as follows:

  • Bodily Injury: $25,000 per person
  • Bodily Injury: $50,000 per accident

Coverage for uninsured/underinsured motorist property damage is not a required provision in New York.

Personal Injury Protection (PIP) – requires minimum coverage of $50,000 under no-fault benefits required by law. PIP covers medical costs incurred by either you or passengers in your vehicle, regardless of who the at-fault party is in an accident. In addition to medical costs, it can also cover lost wages.

Optional Car Insurance Provisions in New York

The following coverage provisions can be added to your policy, though they are not required under New York State law:

  • Higher dollar amounts on any required coverage provisions.
  • Collision, paying for damage to your vehicle regardless of who is at fault in an accident.
  • Comprehensive, paying you for non-moving damage to your vehicle, including fire, flood, theft, vandalism, or collision with an animal.
  • Medical payments coverage, pays medical or funeral expenses for you or your passengers, regardless of who is at fault in a moving accident.
  • Accidental death and dismemberment (AD&D), if you or a passenger in your vehicle experience serious injury or death due to an accident.
  • Supplemental spousal liability covers costs related to death or injury of the driver’s spouse during an accident.
  • Towing and labor coverage.
  • Rental car reimbursement.
  • Mechanical breakdown coverage.
  • Roadside assistance.
  • Loan or lease payoff, sometimes referred to as “Gap coverage”, it provides for the full pay off of your loan or lease, even if the financing balance is higher than the value of your vehicle at the time it’s totaled in an accident or other casualty.
  • Personal umbrella policies, providing additional liability coverage ($1 million or more), typically for high net worth individuals, though it can also cover libel, slander, false arrest, and invasion of privacy.

New York is a “No-fault State”

New York is one of 12 states nationwide that operate under no-fault car insurance. Under the law, you’ll pursue coverage for medical treatment through your own car insurance provider, regardless of which driver is determined to be at fault. You will not be entitled to compensation for pain and suffering or other non-monetary damages caused by the accident.

There are two exceptions to New York’s no-fault law.

The first is vehicle damage claims. A claim against the at-fault driver can be made for either damage or total loss of your vehicle. There are no dollar limitations on this provision.

The second is the “serious injury” provision. You can pursue a claim against the at-fault driver if your injuries result in any of the following conditions:

  • Significant disfigurement
  • Bone fracture
  • Permanent limitation of use of a body organ or member
  • Significant limitation of use of a body function or system
  • Substantially full disability for 90 days

If any of the above apply, you can pursue financial remuneration against the at-fault party, either through the driver’s insurance company or with a personal injury lawsuit.

New York Doesn’t Allow Occupation or Education to be Used as Underwriting Criteria

Under a law passed in 2017, New York prohibits the use of a driver’s education or occupation as criteria for determining the acceptability of an applicant or the premium rate in auto insurance policy.

These are common criteria used by auto insurance companies across the country, but they are specifically prohibited under New York law. The law is intended to eliminate penalizing drivers in low-wage occupations, or those without college degrees.

New York State Car Insurance FAQs

If I get into an accident in another state, what happens if my liability exceeds the New York State minimum requirements?

If the minimum liability requirements in another state where you are operating your vehicle are higher than those of New York, your policy will provide coverage for the minimum required in that state.

Why is car insurance so expensive in New York?

The statewide average premium in New York is nearly twice that of the national average. There are several reasons why this is true. First, New York has a very high population density, particularly in New York City and the surrounding suburbs. Close proximity produces more accidents. The state has a higher risk for both vandalism and theft. New York City also presents a problem on the parking front. Tight spaces and on-street parking increase the likelihood of accidents. Still, another factor is that New York is a high cost state in general, which is also reflected in auto insurance premium rates.

But one of the biggest single contributors is the state’s high premiums is its no-fault status. No-fault is designed to minimize litigation, but it often results in higher premiums. Because of the no-fault law, you’re required to have personal injury protection (PIP), which results in a higher premium.

What happens when your car insurance lapses in New York?

First, midterm cancellation is not permitted once a policy is in force for 60 days, or anytime during the renewal period, except for revocation or suspension of your driver’s license, non-payment of premium, or fraud or material misrepresentation. If you fail to pay your premium when due, the insurance company can either cancel your policy midterm or refuse to renew it. And you may be subject to a $300 fine.

Summary: Best Car Insurance in New York

Company Best For  
Best Overall Get Started
Cheapest Overall Get Started
Cheapest After DWI/DUI Get Started
Highest Customer Satisfaction Get Started
Teen Drivers Get Started
Young Drivers, Drivers With a Violation Get Started
Customized Coverage Get Started

 

The post The Best Car Insurance in New York State appeared first on Good Financial Cents®.



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What Are the Best Car Loans When You Have Bad Credit?

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If you have bad credit and need a car loan, there are some challenges when compared to obtaining a standard car loan. However, pick your head up because there are a handful of great lenders that specifically tailor their programs to people with bad credit. We researched the landscape of lenders that can help you get a car loan even if you have a below-average credit score.

Based on our study, OneMain Financial and LightStream are two of the top lenders offering bad credit card loans. This is due to factors including loan options, requirements to qualify, and interest rates offered. Of course, we offer in-depth reviews of all the top lenders who offer bad credit car loans further down in this piece.

 

In this guide we also help you understand the factors that go into selecting the right auto lender, and how to get the best rate you can.

IN THIS ARTICLE:

 

Most Important Factors for Bad Credit Car Loans

If you’re in the market for a bad credit car loan, there are a plethora of factors to consider and compare. Here are the main loan details we looked at in our study, and the ones you should prioritize as you select the best car loan for your needs.

  • Check your credit score. And understand what is in your credit report.
  • FICO scores under 579 is considered ‘poor’. But you may need a bad credit loan with a score as high as 669.
  • Interest rates and fees matter. These can make a huge difference in how much you pay for an auto loan each month.
  • Compare loan terms. Consider your repayment timeline and compare lenders with this in mind.
  • Getting prequalified online can help. Some lenders, including ones that made our ranking, let you get prequalified for a loan online without a hard inquiry on your credit report.
  • Watch out for loan restrictions. Some lenders impose restrictions on what car you can purchase. Keep this in mind to avoid unpleasant surprises later.

The Best Bad Credit Car Loans of 2020

The best bad credit car loans make it easy for consumers to qualify for the financing they need. The following lenders made our list due to their superior loan offerings, excellent customer service, and reputation in this industry.

Car Loan Company Best For… Get Started
Best for Flexibility Apply Now
bad credit car loan upgrade Best Personal Loan Option Apply Now
autocreditexpress logo Best Loan for Bad Credit and No Credit Apply Now
myautoloan bad credit car loan logo Best Loan Comparison Site Apply Now
capitalone logo Best Big Bank Loan for Bad Credit Apply Now
lightstream logo Best for Fast Funding Apply Now

Why Some Lenders Didn’t Make the Cut

While the lenders we are profiling are the best of the best, there are plenty of bad credit car loans that didn’t quite make the cut. We didn’t include any lenders that only offer auto loan refinancing, for example, since we know many people need a car loan in order to purchase a new or used car or truck. We also stayed away from bad credit car loans that charge outrageous fees for consumers with the lowest credit scores.

Bad Credit Auto Loan Reviews

We listed the top companies we selected in our study above, but we also aim to provide readers with more insights and details on each. The reviews below highlight the highlights of each lender that made our list, plus our take on who they might be best for.

OneMain Financial: Best for Flexibility

OneMain Financial offers personal loans and auto loans with interest rates that range from 18.00% to 35.99%. You can repay your auto loan in 24, 36, 48, or 60 months, and you can use this lender to borrow up to $20,000 for a new or used car. You can apply for your auto loan online and from the comfort of your own home, and it’s possible to get approved within a matter of minutes.

While OneMain Financial doesn’t list a minimum credit score requirement, it’s believed they will approve consumers with scores as low as 600. You should also note that auto loans from OneMain Financial come with an origination fee of up to 5% of your loan amount.

Sign Up With OneMain Financial Today

Why This Lender Made Our List: OneMain Financial offers a lot of flexibility in terms of your loan terms, including the option to repay your auto loan over five years. OneMain Financial also has pretty decent reviews from users for a bad credit lender, and they have an A+ rating with the Better Business Bureau.

Potential Downsides to Be Aware Of: OneMain Financial charges some pretty high rates for its bad credit loans, and don’t forget that you may need to pay an origination fee that is up to 5% of your loan amount. Their loans are also capped at $20,000, which means this lender won’t work for everyone.

Who It’s Best For: This lender is best for consumers with really poor credit who need auto financing but can’t get approved for a better loan.

Upgrade: Best Personal Loan Option

Upgrade is an online lender that offers personal loans with fixed interest rates, fixed monthly payments, and a fixed repayment timeline. You can borrow up to $50,000 in an unsecured loan, which means you won’t actually use the car you purchase as collateral for the loan.

You can repay the money you borrow over 36 to 60 months, which makes it possible for you to tweak your loan offer to secure a monthly payment you can afford. Upgrade has a minimum credit score requirement of 620 to qualify, although they’ll consider additional factors such as your income and employment history.

Sign Up With Upgrade Today

Why This Lender Made Our List: Upgrade lets you “check your rate” online without a hard inquiry on your credit report. This makes it easy to shop around and compare this loan offer to others without having to fill out a full loan application. Also note that Upgrade has an A+ rating with the BBB.

Potential Downsides to Be Aware Of: Upgrade charges APRs as high as 35.89% for consumers with the worst credit, and an origination fee of up to 6% of your loan amount might also apply.

Who It’s Best For: Upgrade is best for consumers with decent credit who need to borrow a larger loan amount. This loan is also best for anyone who wants an auto loan that isn’t secured by their vehicle.

AutoCreditExpress.com: Best Loan for Bad Credit and No Credit

AutoCreditExpress.com is an online platform that lets consumers with bad credit and even no credit get the financing they need. Once you fill out some basic loan information, you’ll be connected with a lender who can offer you financing as well as a dealership in your area. From there, you’ll head to the local dealership and pull the pieces of your auto loan together, including the purchase price of the car you want.

Sign Up With Autocreditexpress.com Today

Why This Lender Made Our List: AutoCreditExpress.com has an A+ rating with the Better Business Bureau. This platform also makes it possible for consumers with no credit at all to finance a car, which is a welcome relief for people who are building credit for the first time.

Potential Downsides to Be Aware Of: This website is a loan platform but they don’t offer loans directly to consumers. This means you won’t have any idea on rates and terms until you fill out an application and get connected with a lender.

Who It’s Best For: This loan is best for consumers with no credit or minimal credit history who cannot get approved for a loan elsewhere.

MyAutoLoan.com: Best Loan Comparison Site

MyAutoLoan.com is a loan comparison site that makes it easy to compare up to four auto loan offers in a matter of minutes. You can use this website to apply for a new auto loan, but you can also utilize it to consider refinancing offers for an auto loan you already have. You can also use funds from this platform to purchase a car from a dealer or from a private seller.

Sign Up With OneMain Today

Why This Lender Made Our List: Comparing auto loans in terms of their terms, rates, and fees is the best way to save money and wind up with the best deal. Since MyAutoLoan.com is a loan comparison site, they make it easy to shop around and compare competing offers.

Potential Downsides to Be Aware Of: Loan comparison sites connect you with other lenders who have their own loan terms and minimum requirements for approval. Make sure you know and understand all the details of loans you’re considering before you sign on the dotted line.

Who It’s Best For: MyAutoLoan.com is best for consumers who want to do all their auto loan shopping with a single website.

Capital One: Best Big Bank Loan for Bad Credit

Capital One offers online auto loan financing in conjunction with a program called Auto Navigator®. This program lets you get prequalified for an auto loan online, then work with a participating dealer to coordinate a loan for the car you want. Capital One also lets you search available vehicles at participating dealerships before you apply for financing, making it easy to figure out how much you might need to borrow ahead of time.

Sign Up With Capital One

Why This Lender Made Our List: Capital One offers the huge benefit of letting you get prequalified online without a hard inquiry to your credit report. Capital One is also a reputable bank with a long history, which should give borrowers some comfort. They have an A+ rating with the BBB and plenty of decent reviews from consumers.

Potential Downsides to Be Aware Of: You should be aware that Capital One auto loans only work at participating dealers, so you may be limited in terms of available cars to choose from.

Who It’s Best For: Capital One auto loans are best for consumers who find a car they want to buy at one of the participating lenders that works with this program.

LightStream: Best for Fast Funding

LightStream offers online loans for a variety of purposes, including auto financing. Their auto loans for consumers with excellent credit start at just 3.99% with autopay, and even their loans for consumers with lower credit scores only run as high as 16.79% with autopay.

You can apply for your LightStream loan online and get approved in a matter of minutes. This lender can also send your funds as soon as the same business day you apply.

A minimum credit score of 660 is required for loan approval, although other factors like your work history and income are considered.

Sign Up With LightStream

Why This Lender Made Our List: LightStream offers auto loans with exceptional terms, and that’s even true for consumers with less than perfect credit. You can also get your loan funded as soon as the same business day you apply, which is crucial if you need auto financing so you can get back on the road.

Potential Downsides to Be Aware Of: With a minimum credit score requirement of 660, these loans won’t work for consumers with the lowest credit scores.

Who It’s Best For: LightStream is best for people with decent credit who need to get auto loan financing as quickly as possible.

What You Need To Know When Applying For A Car Loan With Bad Credit

Interest rates and fees matter.

If you think your interest rate and loan fees won’t make a big difference in your monthly payment, think again. The reality is that rates and fees can make a huge difference in how much you pay for an auto loan each month. Consider this: A $10,000 loan with an APR of 35.89% will require you to pay $361 per month for five years. The same loan amount at 21.99% APR will only set you back $276 per month. At 9.99%, you would pay only $212 per month for five years. The bottom line: Make sure to compare auto loans for bad credit so you wind up with the lowest possible APR you can qualify for.

Take steps to improve your credit score before you apply.

It’s not always possible to wait to apply for a car loan, but you may be able to secure a lower interest rate and better loan terms if you can improve your credit score before you borrow money. The most important steps you can take to improve your score include paying all your bills early or on time, as well as paying down debt in order to decrease your credit utilization. You should also refrain from opening or closing too many credit card accounts in order to avoid new inquiries on your credit report and maintain the longest average length of your credit history possible.

Compare loan terms.

Some lenders let you borrow money for up to 84 months, while others let you repay your loan over 36 or 60 months at most. If you need to repay your loan over a longer timeline in order to secure an affordable monthly payment, make sure to compare lenders based on this factor. If you’re having trouble figuring out how much can you can afford, gauging affordability based on the monthly payments you can handle can also help in that effort.

Getting prequalified online can help.

Some lenders, including ones that made our ranking, let you get prequalified for a loan online without a hard inquiry on your credit report. This makes it considerably easier to compare rates and shop around without formally applying for an auto loan. Getting prequalified with more than one lender can also help you determine which one might offer the lowest rate without having to fill out a full loan application.

Watch out for loan restrictions.

As you compare the lenders on this list, keep in mind that not all lenders extend loans for any car you want. Some only let you finance cars with participating lenders in their network, which can drastically limit your options and make it impossible to purchase a car from a private seller. If you hope to purchase a car from someone you know or a website like craigslist.org, you may want to consider reaching out to your personal bank or a credit union you have a relationship with.

Bad credit car loans don’t have to be forever.

Finally, you should know that a car loan for bad credit doesn’t have to last forever. You may need to borrow money for a car right now regardless of the interest rate and terms you can qualify for, but it may be possible to refinance your loan into a better loan product later on. This is especially true if you focus on improving your credit score right away, and if you use your auto loan as an opportunity to prove your creditworthiness.

How to Get the Best Rate

1. Check your credit score.

Your credit score is one of the most important defining factors that dictate loan costs. Before you apply for an auto loan, it can help you check your credit score to see where you stand. Your score may not be as bad as you realize, but it could also be worse than you ever imagined. Either way, it helps to know this important information before you start shopping for an auto loan.

2. Improve your credit over time.

If your credit score needs work, you’ll want to take steps to start improving it right away. The most important steps you can take to boost your credit score include paying all your bills early or on time and paying down debt to decrease your credit utilization. Also, make sure you’re not opening or closing too many credit accounts within a short amount of time.

3. Check your credit reports.

Use the website AnnualCreditReport.com to get a free copy of your credit reports from all three credit bureaus. Once you have this information, check over your credit reports for errors. If you find false information that might be hurting your score, take the steps to have the incorrect information removed.

4. Compare loan offers from at least three lenders.

A crucial step to get the best rate involves shopping around and comparing loan offers from at least three different lenders. This is important since lenders with different criteria might offer a lower APR or better terms than others.

5. Be flexible with repayment terms.

Also consider a few different loan terms provided you can afford the monthly payment with each. Some auto lenders offer better rates for shorter terms, which can help you save money if you can afford to repay your loan over 24 or 36 months instead of 60+.

How We Chose the Best Auto Loans

The lenders on our list weren’t plucked out of thin air. In fact, the team behind this guide spent hours comparing auto lenders based on a wide range of criteria. Here’s everything we considered when comparing the best bad credit car loans of 2020:

Interest Rates and Loan Terms: Our team looked for loans that offer reasonable rates and terms for consumers with poor credit. While higher APRs are typically charged to consumers with a low credit score, we only considered lenders that offer sensible rates that don’t seem out of line for the auto loan market.

Ratings and Reviews: We gave preference to lenders who have decent reviews online, either through Consumer Affairs, Trustpilot, or another third party website. We also gave higher marks to lenders who have a positive rating with the Better Business Bureau (BBB).

Online Availability: Lenders who offer full loan details online were definitely given top priority in our ranking, and lenders who let you get prequalified online without a hard inquiry on your credit report were given the most points in this category. But since not everyone wants to apply for a loan online, we also included some lenders that let you apply over the phone.

Approval Requirements: Finally, we looked for lenders that extend credit to consumers with low credit scores in the first place. Not all lenders offer specific information on approval requirements, but we did our best to sort out lenders that only accept borrowers with good or excellent credit.

Summary: Best Bad Credit Card Loans of 2020

The post What Are the Best Car Loans When You Have Bad Credit? appeared first on Good Financial Cents®.



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Someone Local Has My SSN

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A few weeks ago I was checking my credit via a credit app, like I regularly do, and also because I received a notification that my address had been updated. I moved a while ago so it was a little late, but I figured, why not just look and see what's going on.

In the alerts, I noticed that I had an inquiry for a Target credit card – the day prior, in fact. I call them up and ask questions (they give me some details), let them know it's fraudulent, etc. I took all the necessary steps to ensure that this doesn't go beyond what happened (fraud alerts, ftc, etc). The application didn't go through – thank goodness.

Anyway, I'm really perturbed by what has transpired. I reported this to the police and luckily, they are taking this so seriously it makes me want to cry – they have been awesome. We have pictures/videos of these women (two) and it was so eerie seeing them because they're so calm about committing a crime.

I have been obsessed with figuring out how they got my information; this is what is so jarring to me. They used my name (obviously), previous address, and my social security number. The detective said this is somewhat unusual because they are local, so he implied that this probably wasn't something they got on the dark web.

I was thinking about the possibilities…and I came up with something odd that happened the day prior to the attempt. I attended a college nearby years ago, like 8 years ago, I think. I received a text from them letting me know that I should evaluate the online classes that I am taking. The message is cut off so I can't see the whole thing. I called the college and they said that I am not showing as enrolled so I dropped it there.

But it then occurred to me that I had just applied for income-based repayment for my student loans late last month. My email is full of all the messages sent and they're all circling the time when the identity theft took place. The place managing my loans is located nearby, even though I did all this online. I called this organization and asked them if they regularly see social security numbers and they told me that this is the case. They just aren't allowed to have pens, paper, or their cell phones on the floor. But they have lockers to use.

Could this be the cause? I haven't used my SSN for anything except taxes and I got a new vehicle early last year. I'm wondering if someone at this organization managing student loans gleaned information from my file somehow and triggered something at my school to send notifications, but maybe that's a bit far-fetched.

I called a lot of places I typically do business with and none of them come as close as this organization in theory, of course, but I'm wondering what you fine people think of this. Have you had something like this happen?

There is also something else I can't quite wrap my head around and that is her driver's license. The last 4 digits don't match mine, of course (?). But I was thinking, since they scanned her ID at the time of the application, how did the person processing this not notice that her information doesn't match what she wrote down? Or was it a fake ID (are they even "scannable")? Or…could she possibly have access to fake the information so it matches like working at the DMV? I don't know.

Obviously, I want these two people caught and I am confident that they will be. In the interim, anyone have any ideas? Who I should call? Try something else to protect my identity (I think I thought of everything, but I could be wrong)?

Thank you; sorry if the post doesn't quite fit here – I don't post really.

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The First Progress Platinum Prestige Mastercard® Secured Credit Card Review

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The is designed to help cardholders build or rebuild their credit. Instead of tying card approval to your credit score, First Progress uses a refundable security deposit to establish your credit line. With no minimum credit score or credit history required, this card is a great option to help manage debt and improve financial health.

This card is backed by Progress Credit, which helps cardholders steadily build or rebuild their credit scores. The company also offers two other secured cards — the and the — which features slightly lower annual fees but higher interest rates.

The First Progress Platinum Prestige Mastercard® Secured Credit Card can’t compete on rewards or annual fees when it comes to secured credit cards, but it offers one of the lowest purchase APRs available.

What we like about the First Progress Platinum Prestige Mastercard® Secured Credit Card

  • 9.99% (Variable) APR for purchases, which is significantly lower than most secured and unsecured cards
  • No minimum credit score or history required, making it easy to start building credit with a cash deposit of $200
  • Deposits are fully refundable once your balance is paid
  • Credit scores are reported to all three major credit bureaus monthly to help build credit

Things to consider

  • $49 annual fee: If your cash flow is limited, this fee can be frustrating
  • No balance transfers: This card doesn’t offer the option of balance transfers
  • Potential payment fees: If you choose to use outside payment vendors rather than your bank account to make balance payments, you maybe be charged additional fees
  • Late payment fees: You’ll be charged up to $40 for any payments not received by the statement due date

First Progress Platinum Prestige Mastercard® low APR details

While the defining feature of this card is secured credit, what sets it apart from competitors is its low purchase APR. Making the most of the means leveraging these features in tandem to maximize your purchasing power and boost your credit score.

To get approved, you must deposit $200 into a deposit account at Synovus Bank. While it can be refunded if you pay your credit balance and close your account, it can’t be removed while your card is active. Once your card is activated, the automatic credit reporting each month means that you’re constantly building credit to eventually gain a higher credit limit.

The low APR offered by First Progress Platinum Prestige Mastercard® Secured Credit Card makes the path to better credit easier. At just under 10% (variable with the prime rate), you’ll pay less in interest for purchases each month, in turn reducing the amount of time you’ll spend paying your card down. This is what credit bureaus want to see — cards that are used but also consistently paid off.

First Progress Platinum Prestige Mastercard® fees

The biggest fee you’ll pay for the is the annual fee of $49 per year. You also pay $10 or 3% (whichever is greater) for any cash advances, and a 3% fee also applies to any foreign transactions. It’s also worth noting the card’s late and returned payment fees, which are up to $40 and up to $29, respectively.

While foreign transactions and cash advances probably won’t be your first priority when building credit, the cost of yearly fees combined with fairly substantial late and returned penalties can negatively impact your overall financial footing.

How does it compare to other secured credit cards?

Although the offers the benefit of low APR for purchases, it’s not the only secured credit option on the market. For example, if you prefer secured credit with no annual fee, the may be your best fit. If you like the idea of getting cash back while also building your credit, opt for the to earn while you spend.

Card Ongoing Purchase APR Annual Fee Intro Bonus Credit Needed Key features
9.99% (Variable) $49 None No Credit History
  • No credit score or credit history required
  • Low purchase APR
  • Security deposit is fully refundable
26.99% (Variable) $0 None No Credit History
  • No annual fee
  • Access more credit with a larger initial security deposit
  • Increase your credit line after making your first five monthly payments on time
24.49% Variable $0 Discover will match all cash back earned at the end of your first year No Credit History
  • Earn 2% cash back at gas stations and restaurants up to $1,000 each quarter, plus unlimited 1% cash back on all other purchases
  • Review your FICO credit score for free each month
  • Late payments won’t increase your APR

The bottom line

The is a great fit if you’re looking to build or rebuild your credit, thanks to its easy approval process and low APR. If cash back rewards or having no annual fees are your biggest priority, however, consider other options like the or the .

Editorial Note: Compensation does not influence our recommendations. However, we may earn a commission on sales from the companies featured in this post. To view a list of partners, click here. Opinions expressed here are the author’s alone, and have not been reviewed, approved or otherwise endorsed by our advertisers. Reasonable efforts are made to present accurate info, however all information is presented without warranty. Consult our advertiser’s page for terms & conditions.

The post The First Progress Platinum Prestige Mastercard® Secured Credit Card Review appeared first on The Simple Dollar.



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