Difference In Auto Loan Terms For Someone With Good Credit Or Bad Credit
Here is the good news! Whether you are someone with good credit or bad credit, you can get an auto loan. In the good credit scenario, you will be able to pretty much pick and choose the auto dealer and the terms while having a smile on your face even after they hand you the keys. You might even pay cash which should include a company discount or rebate. You will not need much skill since you have probably been online and know what you want. The salespeople will be all over you like bees to pollen.
Bad Credit Scenario
The bad credit scenario will be different but you can still get an auto loan. You will not be shopping at one of those fancy dealerships with the colorful banners blowing in the breeze, and the salesperson’s parlance will a bit different. You know your credit sucks because you got your credit score and in about five minutes, so will the dealer. This will expose the difference in terms for auto loans between someone with good credit and someone with bad credit. However, the dealer could care less. That is the bulk of his business. They will still try to get you a car but at high interest financing rates. You will have a nice, clean, cheap used automobile guaranteed for 30 days. You need transportation and this dealer is your answer. Beggars can’t be choosers.
Going back to the good credit scenario, if you are the buyer, not paying cash and considering 24 month terms, whatever you do, do not let the dealership finance your automobile. Usually good credit people already have financing arranged from their own bank and can sign the paperwork, hand the dealership a cashier check, and get the keys before the salesperson can offer them a second cup of coffee.
On the other hand, the bad credit person has no opportunity to walk into a dealership holding a check for a car unless they received some huge windfall of cash. This means you will have to depend on the dealer for financing. You won’t like it, but you’ll take it even if the interest rate is greater than 10 percent. Do not put yourself in this situation and start improving your credit now. Put yourself in a scenario where you can control the outcome of the transaction. Improve your credit, call beforehand to see if they can offer the car to you for your desired price and price compare among different dealerships.
Auto Equity Loan Approval Tips
Auto equity loans, also known as car title loans, are a form of credit where the borrower uses the value of their car in order to get money for almost any purpose. Typically, these loans take just a few minutes to obtain and the person can walk out with cash or check in hand. They are a great way to get emergency cash when you need it most. For extra convenience, these auto equity loans are also available via online submission.
Meeting The Auto Loan Requirements
In order to obtain an auto equity loan, there are several requirements a person must typically meet before a loan will be extended. Keep in mind that these can change based on your area and the specific lender. The general requirements are:
- A clear (or almost clear) vehicle title
- A valid driver’s license
- Verifiable employment
While some lenders may require proof of employment and income, others may not. It’s best to verify what you will need to bring with you by phone before visiting the store or do it at the comfort of your own home on the internet.
Before You Sign The Loan
The loan officer will go over the specifics of your contract, including the number of payments, finance charges and other fees associated with the loan. Carefully review this information before you sign anything to be sure you understand the loan terms. Be sure to familiarize yourself with your payment schedule, as it outlines how much you will have to pay each month to avoid late fees or repossession proceedings. If you apply online, you will simply fill out a form that will determine how much you can qualify for.
Helpful Tips For Auto Equity Loans
Eventually, everyone runs into some kind of financial hardship, and using this form of credit is a great way to overcome a temporary setback. However, these loans should be used for emergency purposes and not as a normal line of credit. Because they do not carry the typical low monthly payments of traditional financing options, the best way to avoid further trouble is to pay off the loan as quickly as possible. Paying above the minimum each month will help pay down the loan faster, and prompt payments are a great way to rebuild your credit if you have had issues in the past.
An auto equity loan can be a lifesaver when tragedy or a personal emergency strikes and someone needs cash fast. When used properly, they are a valuable asset to anyone with a clear car title. If you are looking for competitive auto equity loan rates with a set monthly payment, start applying online.