The Truth About Car 0% Financing Fees

Filed under Lending Money, Loans

Many people who are scouring the market for a car have seen an offer for car 0% financing fees at some point. First, someone may consider the deal to be really good, but only if that actually is the interest rate you will receive as a car buyer. The problem is that many advertised 0% car finance offers are also very hard to qualify for and most car buyers will have problems trying to get approved for this type of financing. The best tip to qualify for this kind of offer is to know the facts first.

Attract Customers with 0% Car Loan Financing

In truth, car makers and dealerships typically use 0% car finance deals as a way to attract customers. Most people, who even do follow up on these deals, usually will not have a good chance at securing one. The first major condition that sellers use to disqualify a person from getting these offers is the credit history. Many dealerships want you to have earned at least a 700 credit score before they can think about giving you one of these deals. They check the person’s credit and his or her complete credit history. If the record has any negative marks, it is likely to become disqualified. The same rules apply to people who try to find zero interest auto loans. So be sure to get your credit report and scores and know beforehand what low interest deals you can secure with your credit history.

If a potential car buyer ends up passing the first credit screening, they become eligible to follow the terms of the 0% deals, which are made to decrease the number of vehicles that can actually receive 0% financing. Usually, only specific makes and models can receive 0% financing in addition to cars that are present on the parking lot.

Many times, a seller will provide 0% financing along with other incentives and rebates. They might make it seem like you are getting all of the offers at once, but most people will not be able to receive one or the other. They must also know that a 0% deal is typically only made for car loans up to 1 to 3 years and not for car lending that is less than 3 years. Also, many times 0% financing does not apply to the entire duration of the loan and the interest rate can increase greatly once repayments begin.

People who want to follow up on car 0% financing fees should look at all of the qualifications and terms first. Even though these deals are quite attractive, they can be used by only a few people and most people will have trouble trying to qualify. Those who do qualify should pay attention to all the terms and conditions, how long the 0% contract will last and what are the monthly payments.

Tags: Attract Customers with 0% Car Loan Financing

Borrowing Large Sums of Money Advice

Filed under Lending Money, Loans

Borrowing money has consequences, especially if you are looking to borrow large sums of money. The credit market is tight these days and banks are wary about lending. However, if you need to borrow money, here are some things you should know.

Pay Attention to Interest Rates

Say you took out a 30000 dollar loan for a big ticket item. You have to be wary of the interest rate and repayment terms. If you bought a car with that money, the average payment is going to be around 600 dollars for 5 years.

A dealership might tell you that you can get a lower payment if you stretch it out to 6 years, but remember that the interest will also increase. Never go by monthly payments regardless of what loan you take out.

Finding Loan Cosigners

If you have less than perfect credit you can always get a loan cosigner. If you are the cosigner, be aware that you are responsible for the payment if the primary loan signer does not pay. This can affect your credit and will put you in the same boat as if you had actually signed the loan. Most student loans will require a cosigner.

Transfer Debt

What can you do about credit card debt? If you have $10000 in credit card debt, it can be tough to pay off. The best thing to do is to transfer that debt onto the lowest interest card you can find. Go to credit counseling if you need help with your debts. Make regular payments to keep your credit score up and to keep debt collectors from calling.

Be careful when you have to borrow large sums of money. Loans are meant to be repaid and are not free money. Only borrow what you can afford to repay and think strongly before cosigning a loan. Money management is important, so be smart with your finances.