These days, owning a car is a necessity. Without your own car, it will be a lot harder and more costly to go to work, get your kids to school, or go from one place to another. However, owning a car also requires a big sum of money. Fortunately, getting a car loan is not only limited to those with good credit. There are now car loan types for good or bad credit that people can choose from.
Instant Auto Loans
For those in need of a car in a hurry, they can avail of instant car loan types online where they can apply for a car loan and get approved at once. All you have to is to get online, fill up the online application form, submit it and receive instant approval. Online auto loans may be secured or unsecured.
Secured auto loans require the borrower to submit a proof of property such as land title as collateral. Secured auto loans generally come with lower rates of interest and a repayment term of 5 to 25 years. With an unsecured auto loan, since it does not require a security, a borrower must be able to show his proof of income and a solid financial status. Unsecured loans have higher interest rates and usually offers lower loan amount.
Choosing Your Car
Whether you choose to apply for a regular car loan or an online auto loan, take your time in planning. If you will not have a plan, you might get easily enticed by a certain offer without considering other options. For instance, have you already decided on the type of vehicle that will buy? Choosing a type of car can also be a difficult choice so make sure you give ample time in studying your choices before deciding on one. Check out reviews on different brands and models of vehicles. Make sure that you’ll choose a car that is most suitable for your lifestyle.
Of course, you need to consider the price of the car. A price of the car depends on the manufacturer, the dealer and the car type. Older models are priced lower so you would also like to consider if an old model which has great features is more practical than getting a new model at a higher price.
Choosing a Car Loan
When you have decided on the type of car you would like to buy, it’s time to select an auto loan lender. Various lenders offer different rates of car loans. It is best to compare each type car loan and opt for the one which has lower interest and easier payment terms.
If you have bad credit, perhaps it may be possible to try to increase your credit score by paying your unpaid bills. If you can wait a little longer until your credit score improves before submitting that car loan application, then you’ll certainly get better rates on your car loan. However, if you really need the vehicle right away, there are auto loan lenders that offer loans for people with bad credit.
Once again, don’t forget to compare rates of different lenders even if it’s sub prime car loan.
If you have good credit status, you should have no problems in getting an auto loan approval. Lenders are also more likely to give you better rates and price quotes. This is why it is so important to check on your credit report before applying for a car loan or any type of loan for that matter. Lastly, always negotiate with your lenders especially if you know that you have good credit.
