Get yourself a
car with car loans
If you want to purchase a new car then, there is more to keep
in mind than just the model, make and features of the car you
want to buy. You also need to work out how you are going to
pay for it. Buying a car needs lots of finance which becomes
difficult to avail through personal resources and hence it calls
for a loan option. Car loans provide sufficient opportunity
for owning a car of your requirement. You can purchase a new
model or buy a used car with car loans.
Car loans are offered to borrowers
as secured car loans or unsecured car loans. Under the secured
car loan option, a large amount can be borrowed at a low rate
of interest for a longer repayment period. Lower interest rate
is the most important reason behind opting for secured car loans
by many borrowers. The interest rate can be further reduced
if the borrower bargains hard with the lender. Secured car loans
are provided against any property which is in the name of the
borrower. The property is pledged as collateral and if the property
has higher value then higher loan amount can be availed with
ease at a reduced interest rate.
On the other hand, an unsecured Car loans
comes without the borrower pledging collateral to the lender.
The lender checks the repayment capacity of the borrower by
reviewing his credit history. He may further ask for income
certificate, proof of employment etc., to ensure safe return
of his money. Unsecured car loans are however given for a smaller
amount and at higher rates of interest. The loan repayment duration
is also kept shorter. People who have bad credit history face
no difficulty while availing a secured car loan. However, to
get unsecured car loans, repayment capability and a lot of convincing
Before you start looking for car loans from lenders it would
be beneficial for you if you decide on the requirement of loan
first. You should be very clear about the car you want to purchase.
Decide whether you want to buy a brand new car or a used one.
A used car will come at a much lesser cost than the new model.
Therefore, make out whether, you can afford a greater loan amount
with your earnings. If you can arrange a portion of the cost
of the car from your own pocket then you will need a smaller
amount as loan. Moreover, if you want to finance the entire
cost of the car then it will put additional burden on you.
Most people end up taking car loans at a much higher rate than
what is available. But then who has the time to shop around
and research all the loan offers available in the market
To save your money and valuable time, do your research on the
Internet. Many lenders are
available online and are displaying their loan products on the
Internet. Check into a lenders website. Select the type of
car loan you need: a new car or a used one and then fill your
postal code. On the next screen you will have to give some personal
and occupational details. Once you have filled up the required
information, you will find all the relevant data like maximum
loan amount you can avail, interest rate, repayment period of
the loan, extra charges if any and the documents required.
Once you are clear in your mind regarding your car loan requirements,
compare car loan packages offered by various lenders. Carefully
compare different loan offers before applying for a car loan.
Select the lender who is offering you loans at lower interest
rates and on easier conditions. Once you have chosen a loan
package apply online by visiting the lenders website. Applying
online is not only convenient but also expedites the loan approval
If you still feel that you might have trouble qualifying for
car loans, here are some things you can do to improve your loan
Fix your credit score: - A credit score reflects the
past performance of the borrower when it comes to repayments
of debts. Your credit score will be an important consideration,
when your loan application will be processed. More so, if you
are applying for unsecured car loans. Therefore, it becomes
compulsory that, your credit ratings are correct. Contact any
credit rating agency and request for a copy of your credit history.
Review your credit history and see whether, information provided
on it is correct. If you find any errors get in touch with the
concerned authorities and rectify it immediately. A correct
credit score is not only important for the approval of the present
car loan but also for approvals of loan in the future.
Know what interest rate you deserve: - Like every other
borrower, you would also want a car loan at the best possible
rate of interest. But to select the best deal, you need to know,
what interest rate you deserve. Consult your friends, office
colleagues and relatives. Talk with somebody who already has
taken Car loans. You can also take
benefit of professional services like of credit counselors and
Close unwanted accounts: - Redundancy in financial
operations does not give the right impression to the lenders.
Therefore, close all unwanted bank accounts if you have more
than one. If you have credit cards which you are not using,
then return them.
Be ready with the documents: - Check whether you have
all the documents ready with you which the lender has asked
for. If not, then talk to the lender and get the alternative
documents. If you are applying for secured car loans see whether
the title deed of the property which you are placing as collateral
is in your name and if it needs correction, get it done at the
Request for a review: - If unfortunately your car loan
application is rejected, do not panic. Ask the lender for the
reason of rejecting your application. Request him for the review
of your loan application.
Car loans give you an opportunity to own your dream car. By
availing car loans wisely, you will move around the city in
All the best!
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