Auto Financing Tips

If you are looking to buy a new automobile no doubt you have already started doing your homework. Comparing vehicles and models, accessories and mileage and checking out an abundance of dealerships to see who has the best price for the exact vehicle you want to drive.

You need to do the same thing when it comes to getting financing for your new vehicle. Financing options abound, and everyone has a slightly different rate with slightly different terms. It is up to you, the consumer, to find the deal that is right for you.

The process of finding a financing option which is best for you can seem daunting but there are at least a few things you can do to make the process a lot less painful and lot more effective in the long run.

Dealer financing

In many cases the dealership will work to help you find an option that you can handle. Remember, they want to sell you a car, so it is in their best interest to help you buy it, but there is only so much they can do. The rest is usually up to you.

Start by comparing financing options available at institutions other than the one your dealer recommends. Don't be afraid to search online, visit your bank, the neighborhood credit union or anyone who makes new auto loans. Everyone will have different interest rates, terms and options. The more options you have the better the deal you can secure for yourself.

Leasing might be better for you

You might also want to consider a leasing option rather than a straight purchase. With leasing you can often get a much lower monthly payment and also not have to worry about maintaining the car month after month because dealer provided maintenance is part of the agreement. Of course at the end of the least the car belongs to the dealer, not you, so be sure you understand how that will impact you in the long run if you decide to go with that option.

Your credit report

If you do decide to purchase you vehicle there are a few simple steps you can take to make certain you get the financing options that you need.

First, get a copy of your current credit score and credit report and start checking it for errors. It is not uncommon for credit reporting companies to use outdated or completely wrong information. It is up to you as the consumer to make certain the information in your credit report is accurate.

Every lender is going to use your credit report and credit score to determine whether or not to loan you money and what terms to offer you. Making certain this information is correct will go a long was to getting you the deal you need.

Compare lenders

Don't just settle for the financing option offered by the dealer. Start comparing rates of as many lenders as you can. Visit your bank, local credit unions and even internet lending agencies. Collect a list of the top five deals offered then revisit them and start negotiating. Don't be afraid to haggle for the best possible deal. Lenders, if they want your business, will be willing to fight for it and will adjust the terms of their loan to better suits your needs in order to get you to deal with them.

Don't be late with your payments

Once you get the loan you want, make your payments on time and pay off the loan in full so you can further improve your credit and get an even better deal the next time you buy a new car.

Mike McTigue is an Automotive Journalist and former Car Dealer with a unique insight into the auto financing industry, and special financing.

Looking to buy a new or used car? Learn more about Auto Financing from the experts, and get a car loan today!

Article Source: http://EzineArticles.com/expert/Mike_McTigue/1246808

Tips to Pay Your Car Loan on Time

Because the world we live in now has become very fast-paced, cars have become more of a necessity than a luxury. A car would make it easier for you to get around the city. Commuting to work can be taxing and even dangerous at times. Cars are great for families as they do not only provide security for each family member they are also very convenient for them. Having your own car would also come in handy during emergency situations.

However, a car doesn't come cheap and most people aren't lucky enough to buy their own brand new car. Though people have their reasons, most of the time it's because of financial problems. In such situations, applying for a car loan is a great solution.

Of course you can't just get a car loan and go. Getting a car loan would require certain responsibilities. The most important responsibility would be to pay your debt on time. You don't want to risk lowering your credit score. It's not always easy to pay back a car loan. To help you out, here are some friendly tips you can use:

· Choose the Right Car Loan Financing Company

The key to paying back on time doesn't start when you have your car. It starts before you even get the loan to buy one. This is the first and probably the most important step to take. A good way to search for one is by searching the internet. If it doesn't have a website, then it's probably not worth your time.

Take advantage of the information given on their websites and browse through important and useful stuff like their policies and services. You can also find out certain requirements you need to accomplish, learn about their rates and payment options. Knowing all these can help you better prepare for paying back your loan and can even save you from unexpected situations.

· Pay Attention to Interest Rates

This is particularly important to you as interest rates basically determine the extra money you pay the company apart from the actual principal you owe.

It would be wise to know the interest rates of different companies so you can compare them and find the best one for you-the one you can pay with no trouble.

· Choose a Practical and Realistic Car

Yes, car loans can help you get the car of your dreams quick and easy. However, it would be a wise decision to go for a car that is practical and realistic-one that meets all your needs in a car yet is also easy to pay back. If you live on a shoestring budget, it's unpractical to go for a Mercedes Benz. You will most probably regret it later on.

· Set your Priorities Straight

Remember that a car loan is a responsibility. You have to be serious about it. Learn how to budget your money wisely so you will always have enough money to pay. Do not take it for granted just because you are given a lot of time to pay back. Most people make the mistake of not preparing for their payments in advance because they think that they still have tons of time to pay. They spend on unnecessary things and when the time comes for them to pay, they aren't ready and they panic.

· Get Help from a Loan Calculator

If you're bad with dates and deadlines, you can use a loan calculator to help you keep track of everything. This device can help you remember due dates and other important payment details. This allows you to know how much you have to pay ahead of time. It's better to be prepared.

Buyacar specializes in selling brand new and used cars. And we all know that cars are quite the necessity for people nowadays. Without them, it would be hard to get around town. Not everyone can afford one, though. For those who are in dire need of a car yet do not have the financial resources to get one, they can opt to apply for a car loan from reliable financing companies like Capitalife.

Article Source: http://EzineArticles.com/expert/Janah_M_Legaspi/1161461

Before Buying a New Car, Why Not Rent It First?

Buying a new car can be a difficult and worrisome event. Trying to decide what model and style car you want, what options you need, and how much you want to spend can take a significant amount of time and effort. Then once you decide on all those factors, now it's time to go to the car dealership lots and talk to the salesperson and take a test drive. Once around the block and you have to try and make up your mind if this is the car for you. Why not try renting a few models first and give them a more complete test drive? A car is something you are going to have to drive for a few years, so it should be the one that fits you best, not necessarily the one the salesman is trying to sell you.

Rental Strategy 

Wouldn't it be nice to try out your normal commute to work as a test drive? If you rent the car for a few days, you can certainly do this. It's a good way to get a feel as to the gas mileage associated with your new car and commute. Since most people spend a significant amount of time in their car commuting to work, now is also a good time to determine if you can be comfortable in the car. Is the road noise too much while on the highway? Is the ride too rough or stiff for you to be comfortable? Does the seat and steering wheel adjust properly to your height and weight? These are all factors that should be considered when test driving your potential new car. This is the advantage of renting for a few days first.

Model Selection 

In the past, most US based car rental companies would only have US model cars. So, if you were looking to rent a foreign model, you wouldn't be able to. More recently, the US car manufacturers have reduced the number of cars they sell to fleets. This means that the rental agencies have to supplement their fleet vehicles with foreign models. So you are more likely to find Toyotas, Nissans and Hondas on the rental lot than ever before. Most rental agencies also try to keep their fleet up to date, so your chance of finding the car you are looking to buy available for rent is very high.

The easiest way to find the model you are looking for is to call your local agent. Ask if they have the year model you are looking for on the lot today. If they do, be prepared to make a trip to the rental lot. Once you are in the car, you can compare the features of the car you are driving versus the car that you are looking to buy. There may be some minor cosmetic differences between the two models. Minor differences such as cloth versus leather seating can be a factor you can overlook in the rental. However, there is a significant difference between a 4 cylinder and a 6 cylinder and it should be a deciding factor that you can experience firsthand while renting.

If you can, you should definitely rent a variety of vehicles before purchasing anything. You may determine that a particular style of vehicle, while it may look good on paper and have all the features you want, might not fit into your daily driving needs.

Ashley Lena is a Business Consultant, Philanthropist and she runs a Think Tank, as well as do a lot of Traveling, Writing, Cycling, Flying, Volunteering & enjoy life to the fullest. Have dabbled in local and regional politics.

Article Source: http://EzineArticles.com/expert/Ashley_Lena/1450629

Tips for Applying for Car Loans

Whether you're an adult or a teenager, owning a car is very important especially these days when everything seems so fast-paced. Going to work or school, dropping the kids to school and rushing to the hospital for an emergency are arduous tasks when you don't have a car. Problem is, not everyone can afford their own car right away. Luckily, financial institutions offer car loans to such people.

Most people aren't familiar with the process and they tend to get lost and confused along the way. Here are some great tips anyone can use when applying for a car loans:

· If you have a bad credit history, don't fret

A bad credit rating is becoming a common problem for people nowadays. If you have a bad credit history, you don't have to worry. There are some financial institutions today that offer car loans to people in your situation. The only catch is that the interest rate that you have to pay will be higher. Understand that the company is only trying to mitigate their risks.

· Take your time and do your research

Getting a car loan is not a joke. In fact, it's a responsibility. You will be spending your hard-earned money on this so you have to do your research to ensure all goes according to plan.

Look for car financing companies online. Read about them and check out their policies, interest rates and payment scheme and periods. Compare companies and choose the best one for you. You can even contact them online if you have any questions.

· Read everything there is to know-even the fine print

Knowledge of your rights and what you're getting yourself into is very important. Most people take this for granted because they believe that knowledge of the basic things is already sufficient.

Avoid getting yourself in sticky situations. Before signing anything, read the documents meticulously and that includes reading the fine print. It may be taxing work but it is for the best.

· Be Financially Realistic

As mentioned earlier, a car loan is serious business. Apply for one only when you truly believe you can afford it. Don't go around getting loans for high-end cars when you can't even afford to feed yourself every day. If you don't think you can pay for the loan on time, it would be best not to apply at all. Not being able to fulfil your responsibility of paying on time may force the company to repossess your car.

Buyacar specializes in selling brand new and used cars. And we all know that cars are quite the necessity for people nowadays. Without them, it would be hard to get around town. Not everyone can afford one, though. For those who are in dire need of a car yet do not have the financial resources to get one, they can opt to apply for a car loan from reliable financing companies like Capitalife.

Article Source: http://EzineArticles.com/expert/Janah_M_Legaspi/1161461

Don't Spend Another Minute Trying To Understand Car Title Loans

You have probably heard of car-title loans but don't understand them. How do they work? Are the a safe financial option? Are they the best option for you? Car title loans are also known as auto title loans, pink slip loans or simply "loan title".

A car title loan is a collateral loan where the borrower used his car or truck to secure the loan. The car will have a lien placed against it and the borrower will surrender a hard copy of the title to the lender. A copy of the car key is also necessary. When the loan is repaid the keys and the title will be given back to the borrower as well as the lien being released. If the borrower defaults on the loan payment, the car will be reprocessed.

A car title loan is a short term loan that carries a higher interest rate than a traditional loan. The APR can get up as high as 36% or more. The lender does not usually check the credit history of the borrower but will look at the value and condition of the car in deciding how much to loan.

Being that a car title loan is considered a high risk loan for both lender and borrower, the high interest rate is assessed. Many borrowers default on this loan because they are in financial trouble to begin or were not in the position in the first place to take out the loan. This makes it even riskier for the lender.

The car tile loan will only take about 15 minutes to achieve. The borrower can receive anywhere from $100 to $10,000. Because of the risk involved with some borrowers, traditional banks and credit unions may not offer these kinds of loans for many people.

With that being said, borrowers are still required to have a steady source of employment and income. After this is verified the borrower's vehicle will be appraised and inspected before any funds are received. The lender will usually give the borrower 30% to 50% of the value of the vehicle. This leaves a cushion for the lender should the borrower default on the loan and the lender need to sell the borrower's vehicle to regain his profit.

The amount of the loan depends on the car.Kelley Blue Book values are used to find the value of resale. The car that you are using for collateral must hold a certain amount of equity and be paid in full with no other liens or claims. It also needs to be fully insured.

Loan repayment is usually due in full in 30 days but in the case of a borrow needing more time to repay, the lender may work out a separate payment schedule. If the borrower is unable to pay the balance of the loan at this time, he can rollover the loan and take out a new loan with more interest.This can become very costly while putting the consumer in jeopardy of getting in way over their head with loan repayment obligations.

The government limits the amount of times a lender can rollover the loan so that the borrower is not in an endless cycle of debt. If the borrower defaults on this payment the car will be repossessed if the lender has clearly tried to work with borrower and isn't getting paid back. Car title loan lenders can be found online or at a storefront location. When applying for one of these loans the borrower will need a couple forms of identification such as a government issued ID, proof of residency, proof of a free and clear title in your name, references and proof of car insurance. Just a quick note, the borrower is still able to drive the vehicle for the duration of the loan. The funds will also be available within 24 hours either by check or deposited in your bank account.

Texas Auto Title Loan is a great option for those who need fast money. TATL is state regulated following all rules and regulations. Visit http://www.texasautotitleloan.com to find out more on title loans.

Article Source: http://EzineArticles.com/expert/Laura_J_Solomon/1474944

Best Tips to Get the Best Auto Loan

Are you in pursuit of buying a car? Are you confused about the auto loan process? Is the problem of money obstructing your car dream? Leave your worries because here's a perfect way to support your auto dream. You have the luxury of owning a new car with the help of auto loans. The auto loans program can help you in fulfilling your dream of driving a luxurious car. Read this article to grab the very best of the auto financing world.

Prepare Yourself for the Best Auto Loan Program

Before opting for car loans, you must know your financial situation. It will help you in knowing the kind of car you can afford. Also, do not restrict yourself to dealership financing. There are many alternatives for you to explore. Today, people have multiple options of getting car loans because there are many financial lenders, credit unions, banks, private party lenders, and online auto financing companies in the car financing business. Also, there is a tough competition in the auto financing industry which makes it easier for Americans to get cheaper interest rates.

You must be prepared to spend some time in research. Remember that negotiation is important and you shouldn't feel shy about it.

Credit Score Information

You need to have a better idea of your credit score before attempting to get an auto loan program. So, get your current credit ratings as well as your credit report. If you have bad credit history, work on it. It will have a positive effect on the auto lender. Remember that you don't have to worry about getting approved because there are many sub-prime lenders and online auto financing companies who offer second chance car loans.

Fixed or Floating?

Interest rates are important criteria. There are basically 2 types of rates: Fixed interest rate and floating interest rates. The former does not fluctuate with the market forces and will remain fixed for the entire loan term. The floating interest rates will vary on the basis of market changes.

Cautious about Clauses

Auto loans are available to every individual irrespective of the credit score. Even if you have great credit score, you should be cautious of certain things. There might be many clauses in the auto loan contract that could force you to make heftier monthly payments. So, it is advisable to read the contract thoroughly so that, you don't get deceived by fancy offers.

Do not choose an automobile loan that has an unnecessarily longer repayment term. Making higher payments than required will increase your financial burden. So, look for a loan whose payments can be easily handled. It is good to repay the auto loan with ease and speed.

How to secure the Best Auto Loan Program?

1. Work on your credit score 

2. Keep Income and Employment Proof ready 

3. Down Payment in the form of cash, trade-in or rebate will be helpful 

4. Co-signer can be advantageous

These points will help you in getting quick approval on auto financing program. Remember that getting a car loan is an important decision and so, you must think well. It will aid in easy car buying and will also assist in building your credit score. All the best!

Rapid Car Loans is a major online auto financing company that offers 100% guaranteed auto credit approval. It provides amazing car financing program with lowest possible rates. Bad credit and zero down payment is not a problem. Apply to get zero cost zero obligation auto loan quotes!

Article Source: http://EzineArticles.com/expert/Rock_Watson/171256

Car Loans for Poor Credit Score

When buying a car, having a bad credit history and low credit score often creates problems. Lending institutions are wary of giving car loans to those with poor credit score. Bad credit has become a bane to the society these days. It is a fact that to get an auto loan with favorable terms and condition you need to have a good credit score. However, if you have a poor credit score, it would be an opportunity to improve your credit ratings before you apply for a loan. Else be ready to pay high rate of interest and a huge down payment.

Car Loans for People with Bad Credit

In reality if you have a bad financial past, it may be difficult to get approval for a car loan. But that does not mean that you cannot avail of auto loans. If you have a stable income and you are on the path of improving your credit score, then the best available option is to apply for bad credit car loans.

For this you will need to speak with a reputed car agent. This will give you an idea about the various options available. When you go to meet your car dealer, remember to carry your financial documents such as bank statements, pay slips, etc. which would give the dealer a clear idea of your financial situation, and the amount you would be able to pay each month.

Now you need to understand that the interest rates of poor credit score car loan are bound to be high. But it is worth pointing out that as your credit scores improve due to regular repayments of your previous loans and the current loans, you can apply for refinancing your car loans. Here you need to pay only a lower rate of interest.

When you are applying for a poor credit score car loan, you would have to pay a huge amount in terms of down payment, because then the lender will not lose much amount if you default on your repayments. Not only that the repayment term is shorter for a person with very bad credit score, and this period ranges from 24 to 48 months.

Loan Options Available for People with Bad Credit

If you have a bad credit history and still want to opt for car loans with longer payment durations, moderate interest rate and lesser down payment, then you need get a co-signer or a guarantor to sign the financial document. When there is a co-signee with a good credit, you are giving the bank a guarantee that their money is not lost and at the same time it gives you an opportunity to improve your credit ratings. The co-signee can be your spouse or parents.

Another option is to apply for a secured loan. Here you would have to provide collateral as a security.

There are several options for car loans with bad credit, but you need to remember to make payments on time to avail the benefits at a later stage. Read the terms and conditions before you sign on the dotted line.

Auto Dealer Leads - 4 Steps to Success

Are you reliant on the age-old practice of using large billboards and print advertisements to grab the attention of a potential car buyer? You are spending thousands of dollars on such marketing strategies but with no results! If you wish to give your automobile website a competitive edge over your nearest competitors, it's high time that you revise your current marketing strategies. To increase auto dealer leads, you need a smart game plan. Have you ever thought about it instead of the old, conventional ways?

Buying a vehicle is not like purchasing a television or computer. That's because a car buyer is very specific as to the choice of model, color, mileage, engine performance, oil, and things like that. Some inbound marketing tactics can do wonders for your dealership. Quality content, paid search, social media, and email marketing are some of the strategies that will help you get an edge over your competitors.

For online car dealerships, quality content creation is a must. Make your website informative for prospective buyers by publishing engaging blog posts, creating infographics, and eBooks. The content should accentuate on the kind of products and services you are offering to attract prospective buyers. It should focus more on your expertise in the automobile industry than anything else. Make sure that your blog posts, web content, or eBooks are useful, informative, and relevant to your targeted audience. You can refer car lead sites, and see what strategies they are embracing to assist dealerships.

As far as paid search is concerned, you need to know what you want out of your paid search. In simple words, what you want your prospects or site visitors to do. Are you going to place a call-to-action button on the page that contains information about your dealership and services? Is that page going to be the home or the landing page? And, will the activities of the page be tracked easily? This means you have to build a structure for your campaign that can be easily understood and managed. It's better if you keep things easy and simple.

A smart way to attract the attention of prospective car buyers is by making your presence felt via the social media sites. When all businesses are improving their online visibility using platforms like Facebook, Google+, and Twitter, why you should lag behind? Create a fan page for potential customers and grab their attention by announcing special services, offers, and deals. You can also share all the great content that you have been creating to improve auto dealer leads. Remember that social media is that platform that helps you connect with prospective buyers, and build trust.

Email marketing is yet another strategy to trigger inquiries, registration, downloads, and sales. If this strategy is properly implemented, cars dealers can develop their client base and improve customer loyalty by sending newsletters concerning new products, offers, and services. In such newsletters, you can mention about the customer relationship management (CRM) tool that you are using to ensure the level of convenience for each transaction that takes place.

What are your views on the subject? Feel free to comment.

Matthew S Barredo is an automotive industry expert who specializes in auto dealer leads. He educates on feasible methods to generate quality auto leads and new car lead sites through sharing his knowledge and expertise.

Article Source: http://EzineArticles.com/expert/Matthew_S_Barredo/1593153

Things to Consider Before Opting for Guaranteed Auto Loan

Losing your night's sleep due to poor credit scores? Willing to buy a used car but have financial constraints? Borrowing from traditional banks and institutions is out of the question as they will reject your application on grounds of bad credit rating. In such a situation, guaranteed auto loan is the right option for borrowers. So, car buyers can choose online loan providers. However, you need to consider certain essential aspects to before choosing a provider.

Lenders

When you are researching on the internet for providers, do not be too choosy. Instead, approach the companies that are reputed and have been in business for quite some time. Look for as much as loan programs as possible. Look for providers, whose down payment and interest rates are attractive. You need to explore all used car loans options and choose the one that best works for you.

Consider Good Down Payment

Consider you are a salaried person; and entitled to a huge pay packet, why not make a substantial initial payment? This will help you level up with an automotive dealer so that you get the amount that you are looking for. For example, if you are intending to buy a plush and swanky model, making a huge down payment will put you in an advantageous position. That's because it will lessen the risk that the seller is keen to take.

Rates of Interest

When you are in a position to make a huge initial payment, the interest rate will lessen. In order to get the best interest rate, it's prudent to search for as many programs as possible. This is important so that you can compare and opt for the deal that is apposite for your vehicle buying needs. Then, stay away from providers who charge abnormal rates. These are dealers who will trick you into a plan that will rip you off financially. Fortunately, if you have a healthy credit rating, you will benefit in terms of less interest rates.

Therefore, it is advised that you research on loan providers. Take your time. Else, there are unscrupulous dealers waiting for opportunities to take advantage of your financial situation and persuade you to shell out more.

Documentation

When you have a poor credit score, or have a past bankruptcy history, keeping all papers is imperative for an easy and hassle-free guaranteed auto loan approval. The lenders ask for papers for a reason. It is not to make you feel embarrassed or to harass you. They want to ascertain how much money you can afford to pay to repay the outstanding amount. This is the reason they ask for current salary slips, financial papers, credit reports, and documents related to tax clearances. All such documents give lenders a true picture of your present financial situation. And, in case you have a bankruptcy history, it's essential to ascertain whether you are permitted by the trustees to bear new debts. That's why having all papers in place is essential, and will put you in a convenient position to avoid last minute rejections.

Do you have any questions to ask? Please comment.

James G Fredrick is a market research analyst in the automobile industry, who insists that it is not tough to get guaranteed auto loan if you choose the right service provider who guarantees to get your loan approved. In his articles, he educates readers about how these companies help people to get used car loans.

Article Source: http://EzineArticles.com/expert/James_G_Fredrick/1563427

Getting Your Best Car Loan - Tips and Tricks

Getting a car loan could be very daunting, emotional and often times an expensive experience. When you are buying a car - new or used - there are usually not one but three micro-sales happening under one sale roof. Subsequently there are three points to negotiate:

1. Car Price
2. Car Trade-in Value
3. Financing

Most salespeople in auto dealerships will try to merge them in one and negotiate with you only ONE final price making their additional money on margins of each of the three micro-sales listed above. Make sure that you understand this sale trick and counter act it properly.

Car Price

Check for the Right Price

If you are buying a new car - always check the Car Invoice Price not the MSRP (sticker price). The invoice price is usually much lower than the MSRP.

If it is a used car - make sure to check CarFax, CarChex, or VinAudit services first to get a car history report to confirm that you are not buying a lemon. For example, there are plenty of recent flood damaged-and-repaired "like new" cars in the market with astonishingly low price which you won't want to buy. Make sure that you are not getting one of them.

Finally, check KBB (Kelly Blue Book) for the objective market price of that used vehicle. Once you know your future car's value - move to step #2.

Check for Consumer and Dealer Incentives

Ask for the first-time-buyer discount, manufacturer-sponsored discount or dealer specific discounts/programs such as a reduced pay rate or cash back values (do you remember that famous - "put down $4K we will add $4K from us"?). Don't make any financing decisions at this stage - keep in mind that dealer financing, being very convenient isn't necessarily the cheapest.

Car Trade-In Value

Know Your Old Car's Trade-In-Value

Make sure to check Kelly's Blue Book or anything similar for the re-sell value of your car. Some dealerships offer car buy-back programs promising you a price for your car better than KBB value in exchange for selling you a new car. That over-the-KBB-delta is usually 10% of KBB value and could sound attractive for many car buyers. However don't get over-excited here - there is a law of nature: "something never comes from nothing" - car manufacturers often offer a solid discounts for each new car sale. These manufacturer-backed discounts usually are not publicly advertised by auto dealers. Many dealers simply take a part of that manufacturer-backed incentive and make this part a 10% discount for you. Check if the manufacturer-backed incentive taken separately is greater than the 10% KBB discount the dealer offers to you. If you ask your dealer the right questions and act correctly you can save a couple of thousand dollars here.

Car Financing

Know Your Credit Score

While there are always ups and downs in the loan market, the better credit scores always lead to better loan rates. To get a better understanding of the score-rate dependency check the following real data table from Year 2012:

FICO Score... Interest Rate

720-850 ------> 5.73%

690-719 ------> 7.37%

660-689 ------> 9.40%

620-659 -----> 12.76%

590-619 -----> 17.68%

500-589 -----> 18.50%

As one can see from the table the interest rate paid by the customer with a FICO score in 500-589 range is more than 3 times greater than for customer with FICO score of 720-850.

Once you know your FICO score you can get your expected up-to-date interest rate - there are a lot of free loan calculators in the internet.

Shop for the Best Loan Around

Don't Buy a Loan Based on How Close the Lender's Office Is to Your Location

Don't forget - you are shopping for money not for geographical convenience. Besides that - many loans are available online nowadays, so location really doesn't matter anymore.

Choose the Right Rate

Never work with one single lender - shop around and get at least three offers from different lenders. Choose those lenders from different lending categories - let banks, private lenders and other financial institutions compete for your business.

Choose the Right Loan Term

Normal loan term is usually from 36 to 72 month. Some lenders will try to sign you off for a very long term loan of 7 or even 10 years - don't go over 6 years unless it is absolutely necessary for you.

Make sure that there is no pre-payment penalties in your loan offer so you would be able to re-finance your loan in the future for a better rate if needed.

Get Your Loan Pre-Approved First

Knowing what you are eligible for will help you a lot in choosing the right car to buy. When asking for a loan amount know your affordability limits. There is a rule of thumb: all your loans together, i.e. - home loan, student loan, auto loan etc. - should not be greater than 25% - 35% of your gross income before taxes. If you already have a mortgage for your house ask your mortgage provider about joined mortgage + auto loan option - this option is always much cheaper than two loans purchased separately.

Know the Real Cost of What You Are Buying

Your real cost isn't just the car cost only. Don't forget auto insurance: the real price you will pay is the monthly auto loan payments + monthly insurance payments where the insurance premiums can be even larger than your auto loan premiums. Cars which are still in financing or in lease will likely require a Full Coverage in your insurance policy which can be very costly.

Choose the Right Loan Type

If you buy a car from the individual and need a loan - you might need to go to bank as many small lenders usually won't provide auto loans for that type of purchases. Personal loan (not the auto loan) could be another solution here. Many private lenders can lend you money for any kind of purchase as long as you are a "lendable" person. Those loans are usually of higher rate and are for smaller amounts than ordinary auto loans but they could be a viable solution for you here.

Once you have all the pieces together - make your final purchase decision. Driving is a very enjoyable experience, so enjoy your new car and drive safely.

Alvin Borsinger - web master and marketing manager at CarGalaxies.com "One Stop Place for All Drivers".

Confused and intimidated by abundance of businesses offering loan for your car? Not sure where to go and how to start? Don't be confused - learn from the knowledge and experience shared by others. CarGalaxies.com Auto Loans Center will help you with proven practical advises from auto financing professionals coast to coast. Learn tips & tricks auto lenders don't want you to know.

If you are a first time auto loan shopper - get yourself familiar auto financing FAQ first http://www.cargalaxies.com/Car_Financing_Q_and_A.aspx - you will know how to avoid many innocent but costly mistakes.

And finally - always get several competing quotes from different lenders before making your final decision. For example, get instant online quotes from recommended auto financing providers at http://www.cargalaxies.com/Car_Financing_Compare_Quotes.aspx.

Become a savvy buyer and save thousands.

Article Source: http://EzineArticles.com/7807163

Bad Credit Auto Loan - Smart Approval Ideas and Tips

Do you think that getting a car loan sanctioned with poor credit history is just a formality? If so, you are mistaken. Then, if you think that approval of such amount is extremely difficult, you are mistaken again. There are bad credit auto loan providers online who help borrowers having tainted credit reports. However, there are certain aspects to remember before submitting your application. The first and foremost thing to do is to enter the correct details in the online form.

However, there are other aspects besides filling up the form. Therefore, for easy and fast approval, you need to:

Know about Your Rating

First of all, it is important that you know your present score, as well as the particulars of the credit report. Car loans are approved easily if you know where you exactly stand as far as your financial situation is concerned. This implies where you need to improve and what chinks in your armor you need to mend.

When it comes to score, it's not a killer blow to your application. For instance, if the score is 620 or less, conventional banks are sure to reject your application. This is where the significance of online lenders comes into play. With these providers, chances of getting the sum sanctioned are maximized. This is the reason you must study your credit report meticulously and improve on it.

Improve Score

Bad credit rating can be improved within a short period of time provided you know how to clean up the financial mess. It can be improved by clearing dues or paying off a part of your debts. These small things will improve your score and the possibilities of getting approved increases.

You can consider a small consolidation loan to pay off bigger debts. When a substantial amount of your existing debts is cleared, your score improves. The fact that you are borrowing another small amount doesn't matter as each of the credit transactions are regarded separately.

However, make sure that you are in a position to opt for a consolidation loan and repay it quickly. Since a single interest rate is more affordable than 4 different interest rates on 4 different loans, a lesser monthly payment is secured, and an improved auto loan is achievable.

Study and Evaluate Options

Last but not the least is understanding what type of loans are available and whether they are suitable for your car buying needs. Beware of dealers who leave no stone unturned to take advantage of your financial situation. These unscrupulous dealers know that a bad credit auto loan is not easily sanctioned by traditional bankers and financial institutions. I am not saying that all are dishonest but there are some. This is the reason you must study and evaluate all options carefully before making a decision.

So, before applying, know the lending company well, and the options offered. Make sure that the power of negotiation is in your hands.

Do you have any questions? Or, wish to suggest something? Please share your valuable comments.

James G Fredrick is a market research analyst in the automobile industry, who insists that it is not tough to get bad credit auto loan if you choose the right service provider who guarantees to get your loan approved. In his articles, he educates readers about how auto credit approval companies help people by providing information about car loans.

Article Source: http://EzineArticles.com/7863755

3 Simple Steps for Poor Credit Car Loans at Low Rates

An unusual report by CNN Money mentioned that Americans avoid marrying people with credit troubles. Never has poor credit had such an impact on American lives! But, don't worry if your credit report says poor credit. You can improve your credit score while buying a car.

Don't think it's a far-fetched dream. You can definitely get a low rate poor credit car loan. Affordable rates will ensure regular payments. This way you will be able to repair your credit ratings.

Don't worry about getting approved for a poor credit auto loan program. This article will provide three simple steps to get lowest rates.

Simple Steps that guarantee Success

1. See your Score before you Shop

Even if you know that you have poor credit score, check it before applying for any loan. Do not worry about negative hit on your credit score because checking your own report doesn't affect your ratings.

Benefits of checking your credit score:

A. It gives you the opportunity to make improvements by removing errors.

B. You can increase score by paying-off few debts.

C. As you know your accurate score, chances of fraud become zero.

D. You can know the average auto loan rates that are available for your score. This will help you in selecting the best possible car financing deal.

2. Unwise to Select a Car

Most experts will suggest you to search for a car at your nearest dealer. The logic is that it saves time after auto loan approval. But, you must refrain from doing so. It is because many bad credit lenders and sub-prime auto financing companies want their applicants to buy the car from a list of specific dealers. This means there is absolutely no point in choosing the exact car make and model. All your hard work will go down the drain. So, get approved for such loan and then search for a car.

3. Online to avoid Lines

With the advancement in technology, the extremely tedious process of car loans has become extremely easy. You can get every kind of auto loan at the click of mouse. There are many online auto financing companies that offer poor credit car loans. The main benefit online auto loan is that you can easily compare and calculate loan rates. Many car financing websites provide online calculators to help you calculate accurate monthly payments and interest.

Ideally, you must apply with more than two websites. It will give you a better chance of comparing rates. This way will you will be able to choose the best rates.

When you want low rates on auto loans, you must optimize your time. Spend it wisely on improving your credit score and searching reputed lenders. It will ensure that you get affordable rates.

Use these simple suggestions to uproot poor credit from your life. The problem of poor credit history can happen to anyone but these suggestions can help you deal with it. Start working on securing lowest rates on poor credit car loans and improve your score today!

Fast Auto Loan Approval is ideal for getting poor credit car loans. It has wide experience in dealing with bad credit history. So, it can provide low rate auto financing very easily. Apply now for quick approval.

Article Source: http://ezinearticles.com/expert/Kaitlin_Miller/1534331

Auto Loan: Buyers With Poor Credit Rating Getting Approved

The recession has affected many individuals and families across the U.S. They are finding it difficult to meet their daily expenses. However, the situation should not compel us to comprise our necessities of life such as buying a home or for that matter a car. The USA car dealers are making it easier for people to purchase vehicles of their choice on an auto loan in spite of having a poor credit rating.

To begin your search for a reliable auto dealer, you no longer need to visit the 'brick and mortar' stores. You can use the internet to look for the most trustworthy dealerships in your locality. You will find all kinds of relevant information you are looking for about a dealer, its way of doing business, customers' feedback, etc. online, 24/7. It will be easier for you to then judge the competency of various dealers before selecting one to do business with.

Individuals with an almost zero bank balance and a poor credit history can happily apply for a car loan being provided by a car dealership. There is absolutely no need for any credit verification or deposit of money at the time of applying for an auto loan. People who have the desire of purchasing a dream vehicle can easily get in touch with a well-known dealer to visit their showroom and apply for a loan to buy the specific car model at the earliest.

Almost all the US dealers are known to provide a guaranteed auto credit loan to people in need of the same on an urgent basis. Visit a dealer's website to fill up and submit an online loan application form. The officials of the dealer will go through your form and call you up for a face-to-face meeting. The meeting is called to know better a potential customer and about his requirements. Based on the end-result, the loan is sanctioned at most with a week. Thus, as you can see, it is far more easier to get a car loan from a dealership than from a bank. The bank officials take a lot of time to examine your requirements and sanction a loan. Besides, they does a thorough background check to find out whether you have a debt or not.

With the auto dealerships lending money for the car purchasing purpose, people with a bad credit score are getting approved to buy a new car of their favorite brand. The rate of interest charged on a new car loan is usually more than a used car. However, almost all US car dealers are understandable enough to charge you a small rate of interest on the lending amount. They also ask for a low down payment which you need to pay at the time of booking a vehicle of your choice.

For borrowers who are unable to repay the lending amount at the end of the contract period, they can easily ask for an extension of the repayment time to pay back the remaining sum of money along with the interest amount.

James G Fredrick is a market research analyst in the automobile industry, who insists that it is not tough to get auto loan if you choose the right service provider who guarantees to get your loan approved. In this article, he educates readers about choosing a guaranteed auto credit loan.

Article Source: http://EzineArticles.com/?expert=James_G_Fredrick

Auto Loan Calculator: Easily Measure the Amount of Money for Repayment Purpose

Buying a car of your dreams can be a thrilling experience! However, what about getting to know the fact that you don't have enough money in your bank account to pay the price of the four-wheeler. A majority of people these days are on the search for a reliable financing organization to finance their car purchasing plan. An auto loan calculator can help a person easily measure the amount of money he or she needs to shell out to book a car immediately.

The traditional process of applying for a car loan from a bank or a credit union is suitable for people who has a substantial amount of bank balance. But what about the rest who don't have that much money as required for taking a loan from a bank? Well, for them the car dealers exist. Yes, it is universally known by now and well utilized as well. The auto dealerships operating in different cities of the world apart from selling cars are making it easier for people to buy a car against a loan. A potential customer can ask for any amount of money as an auto credit loan he is willing to take without giving a second thought.

Usually, the lending process is very simple and smooth. Only the essential documents are asked for. It is the dealer's men who will prepare the same instead of the borrower. As such, your involvement is not required in this matter. A person thus will have enough time and energy to spend on other important areas rather than to run here and there for preparing the necessary papers for a legitimate dealing transaction.

Almost all reputed car dealers have a website where comprehensive information plus images of different models of car made by different manufacturers are given. The prices of each car model are also mentioned apart from the essential features and technical specifications of each. A potential buyer looking to learn about the lending process will also get substantial information on such a site. The website also contains a soft-copy inquiry form plus an online auto credit loan application form for interested people.

Many of the dealers also have an online auto loan calculator uploaded on their site to let the potential borrowers easily calculate the amount of money they need to repay after the end of the loan contract tenure. These sites can be accessed anytime and from anywhere, 24/7.

The key advantages of taking a car loan from a dealer are as follows:

• Quick approval of loan 

• Simple documentation process 

• Loan approval to people with a bad credit 

• Low down payment and rate of interest 

• Extended repayment contract on request

One of the major benefits of taking an auto loan is the ease of a low down payment option. People with a bad credit score will have the option of giving a low down payment at the time of buying a car. The rate of interest charged on a new or a used car is also quite less compared to what a bank or credit union imposes on a borrower. Thus, from several aspects it can be quite a lucrative idea to apply for an auto loan from a dealer.

James G Fredrick is a market research analyst in the automobile industry who insists many dealer websites contain an auto loan calculator to make it easier for people to measure the repayment amount anytime. In this article, he educates readers about choosing auto credit loan.

Article Source: http://EzineArticles.com/?expert=James_G_Fredrick

Auto Credit Loans - Own a Car Easily!

In the US, most people are troubled by a bad payment history. They cannot pay off debts on time or miss mortgage payments. This leads to a bad credit score. As a result, traditional banks and lending institutions reject car loan applications. Then, does that mean that you cannot own a car? You can. There are several web based companies offering auto credit loans to people with a poor payment record. These companies are there to help out and do not reject your application on the grounds of a poor score. They have a simple application process so that you are pre-approved before walking into a dealership. Here some useful tips to get easy approvals. Keep reading this article to learn more.

Check the Lending Procedure

When it comes to these online lenders, they have an easy application procedure with least paperwork. However, you should check the process before signing the final agreement. The papers are prepared by the lenders so that you are spared the time and effort. This time can be utilized for focusing on more important matters. When it comes to guaranteed auto loan providers, they will approve your loan much faster than a traditional bank.

Get in Touch with an Authentic Dealer

This is most important. You need to contact a dealer who is honest and reliable. You should not be tricked into a deal that becomes lucrative for the car seller but expensive for you. It's true that you will get pre-approved but you should not fall prey to unscrupulous dealers. Ask the dealer to show a vehicle that is not overpriced. It should fit within your budget so that you are able to make regular monthly payments during the entire term of the loan. Easy installment facilities should be provided by the seller.

There are reputed dealers who encourage buyers to opt for used vehicles. This is useful if you have a very tight budget. A pre-owned vehicle costs lesser than a brand new one. Therefore, monthly payments will also be less.

Low Rates of Interest

Look for a lender who charges reasonable rates of interest. Since people with a tainted credit report have difficulty making payments, the interest rate should be low. That's because a customer has to pay the principal sum along with the interest within the specified period.

Down Payment

There are Internet based companies offering auto credit loans. They do not ask for a down payment from their customers. This is good in a way for those shoppers who are unable to pay an initial amount. However, if you have some savings, ask the dealer to accept a certain portion of cash as an initial down payment. If you are able to make a down payment, you will qualify for a low interest loan. The sum you are required to pay monthly will also be less.

Repayment Period

Opt for a dealer who has flexible terms and conditions. Good dealers allow enough time so that you are able to repay the borrowed sum. Negotiate and request so that the repayment period is extended for a year or two without any penalty. 

Hope this article proves useful for readers.

James M Fredrick is a market research analyst in the automobile industry, who insists that it is not tough to get auto credit loans if you choose the right service provider who guarantees to get your loan approved. In his articles, he educates readers about how guaranteed auto loans companies help people by providing information about car loans.

Article Source: http://EzineArticles.com/8115582

Why You Should Access an Online Auto Loan Calculator?

The importance of an online auto loan calculator should not be undervalued. People can easily calculate the monthly amount of money they need to give to a dealer as part of the repayment of the car loan he or she has taken. It is very easy to access a calculator over the internet. You just need to visit a car dealer website and access the same free of cost. Usually the home page itself contains the EMI car loan calculator. You need to select the interest percentage, type in the lending amount, and choose the maximum number of months within which you prefer to pay back the money to get the monthly equated amount with a single click of the computer mouse.

Auto dealerships selling brand-new cars as well as used ones usually offer new car loans plus used car loans, 24/7 whenever a person asks for. The process of loan application is also pretty easy and hassle-free. Whenever you plan to buy a car and for that matter need the required sum of money, what you can do is simply access the internet. For people who don't have an internet connection at their home, they can go to a nearby cyber cafe to open a couple of reliable dealer sites to go through the car loan application procedure.

Every website contains comprehensive information about auto loan rules and policies. One of the main benefits of applying for a new or used car loan from a dealer is that they don't hesitate to approve loans to people with a bad or no credit rating. A soft-copy loan form is available in these sites. A potential car buyer needs to fill up the form adding his personal details such as name, permanent address, age, gender, phone number, email address, etc. The data in each online form gets stored in the database of the dealer for them to access the same anytime of the day or night for getting in touch with the car leads for successful conversion.

The primary advantages of using an auto loan calculator are given below.

Measuring Per Month Payment - To make it easier for people to repay the lending amount, almost all car dealers of today have introduced the concept of EMI or Equated Monthly Installment. The borrowers should calculate the payment amount in advance to save money and also avoid confusion using an online calculator.

Saves Time - Of course you don't have to run after the dealers to know the amount of money you need to pay back. You can easily do calculate the amount yourself using an EMI car loan calculator.

Saves Money - You can become a better decision maker once you calculate the auto loan options that best suits your monthly budget and lifestyle. You should choose the car loan plus payment option that is within your budget.

Crack the Best Deal - Numerous auto dealers offer loans against different interest rates. However, you need to identify the dealership who is giving car loans against a small rate of interest and calculate the amount of money you need to pay every month. A car dealer who is giving loan against a small interest rate and for an extended period should be preferred.

James M Fredrick is a market research analyst in the automobile industry who insists that it is always good to take auto loan calculator from a reputed car dealer only. In this article, he also educates readers about used car loans.

Easily Get Auto Credit Loans Within 24 Hours!

Cars have become an essential asset for many individuals. Their life seems to take a halt without a car to take them to the office, their wives to a shopping center or their kids to the school. While a maximum number of people dream of owning a car, a significant section of such people don't actually have ready cash in hand to pay the price of their favorite model.

Banks have been the traditional lending institution for so long. However, the strict lending guidelines have made the banks a non-friendly entity to many individuals since they do not qualify for applying for auto credit loans from a bank. Those individuals either have a bad credit score or are in a debt or going through bankruptcy. Lack of the required amount of funds has therefore made them look for some other method to fulfill their dream of driving a brand-new car.

In such a situation, many of the individuals are getting in touch with a private car dealership who is offering car loans apart from selling a wide range of vehicles to the people in general. The lending process of the private dealers is quite simple and transparent. No hidden charges are involved and moreover, they assure you guaranteed auto credit approval whenever you approach them, 24/7 online or in-person.

Whether you have a poor credit rating or not, you will not face a problem getting a loan approved from the dealers. They do not carry on a lengthy inspection process but rather will ask you a few questions mostly general to clear all formalities and sanction you an auto loan within 24 hours time. Thus, unlike a bank, it doesn't matter whether you are jobless at present or is not getting your salary for the last few months.

Getting auto credit loans from a car dealership includes the following phases.

1. You visit a dealer's office or their website to read the information about car loan. In case you are not satisfied with the information, you will find a soft-copy inquiry form which you can fill up giving your name, address, contact number and posting the query to get a feedback quickly.

2. The website will contain an online loan application form for you to fill up your personal details along with the lending amount you wish to borrow from the dealer and submit the same for processing purpose.

3. Usually the processing time is short - within 24-hour you will get a call or an email to move forward with the lending formalities. You will be asked to meet personally as per your convenience for final discussion about the loan borrowing process, submission of papers, etc.

4. You meet the officials personally in the office and after a short meeting, you get your auto credit loan approved. The payment is done within maximum a week's time.

Thus, the entire process of application to approval is simple and hassle-free. All US-based car dealers also prepare the important documents for loan transfer, etc. themselves. You just need to submit your age proof, identity proof, etc. to get auto credit loans, easily and quickly.

James M Fredrick is a market research analyst in the automobile industry, who insists that it is not tough to get auto credit loans if you choose the right service provider who guarantees to get your loan approved. In this article, he also educates readers about the guaranteed auto credit approval process.

3 Tips for Obtaing a New Car Loan

It is not the population statistics of an American city. It is the total number of cars sold in the month of July. What is the reason of such an enormous increase in car sales?

>> Car manufacturers have started offering huge incentives on new cars and

>> Lenders have relaxed the lending norms

So, if you are an ardent car lover, this is the perfect time to bring home your favorite car. Do not worry about car loan rejection. Learn the three most important tips for securing new car loan.

1. Create a Car Budget

Cars are the next big purchase after a home. And, with the constant rise in car prices, it is very important to spend your money wisely. By creating a car budget, you will be able to manage your loan in a better way. You should start by listing down your monthly income and expenses. Ascertain the amount of monthly payment. You must decide on the loan term as well. It will help you in calculating the total car loan amount.

2. Plan for Down Payment

Down payment is ideal for a new car buyer because it lowers the loan amount and makes car buying affordable. Usually, 10% of the total car value is sufficient for making down payment. But, you can improve your approval chances by increasing the down payment amount.

Is it possible to buy a New Car without Down Payment?

Car manufacturers have made it easier for buyers without down payment. They are offering large incentives. You can use the cash incentives as down payment. This is the ideal way of making down payment without parting ways with your savings.

You can even trade-in your old car. Calculate the value of your old car and ask the dealer to reduce the same amount from the total price of your new car.

There is one more way of making down payment. You can apply for personal loans and put money down. But, make sure that you get affordable rates on the personal loan.

3. Obtain Quick Loan Quotes

Along with the manufacturer incentives, the current interest rate on new car loan is very low. To take advantage of this situation, you need to find a quick auto loan. So, don't waste time in walking down to a bank or a lender. Apply online for instant quotes. Online auto financing companies have lenient lending criteria. Also, they believe in offering new car loans because new cars have longer life than used automobiles.

However, make sure that you approach a reputed auto financing company. The company's web page should be secure. Check for "https" in the address bar while submitting your personal information.

Once you submit your loan application, the online auto financing company will analyze your financial situation and offer you loan quotes. This process won't take more than three days. So, it is advisable to take help of online company for quick completion of the new car loan process.

Car Destination is a reputed online auto financing company. American car buyers trust the company for securing instant approval and low rates on new car loans. Apply now and get ready for no obligation quotes.

Car Title Loans: Choosing the Right Financial Service

How is this a good investment for both the borrower and the title loan company? It is an excellent investment for the borrower. This is why: at this point of time, let's assume the borrower is in some kind of financial disposition. That means the borrower may have lost their job, can't afford to pay their rent, may need money for their child's school tuition; there could be a number of possibilities why the borrower is in search for instant cash. Depending on the borrower's vehicle value, the borrower can receive up to whatever the maximum the loan company may offer. Some loan companies offer up to $100,000 and others may offer lower loans of up to $5,000. Obviously if the borrower is driving a Mercedes or BMW they will be looking at a larger loan value, but every title loan company is different.

Let's look at the other side of the spectrum. How is this a good investment for the loan company? If we scroll back to the first few sentences in this article, we can see that the title loan company "uses the borrower's vehicle title as collateral during the loan process". What does this mean? This means that the borrower has handed over their vehicle title (document of ownership of the vehicle) to the title loan company. During the loan process, the title loan company collects interest. Again, all companies are different. Some companies use high interest rates, and other companies use low interest rates. Of course nobody would want high interest rates, but the loan companies that may use these high interest rates, probably also give more incentives to the borrowers. What are the incentives? It depends on the company, but it could mean an extended loan repayment process of up to "x" amount of months/years. It could mean the loan company is more lenient on the amount of money finalized in the loan.

Back to why this is a good investment for a title loan company (for all the people who read this and may want to begin their own title companies). If by the end of the loan repayment process, the borrower cannot come up with the money, and the company has been very lenient with multiple loan extensions. The company legally receives the collateral of the borrower's vehicle title. Meaning the company receives ownership of their vehicle. The company can either sell the vehicle or turn it over to collections. So are car title loan companies a scam? Absolutely, NOT. The borrower just has to be careful with their own personal finances. They must know that they have to treat the loan like their monthly rent. A borrower can also pay-off their loan as well. There are no restrictions on paying a loan. He or she could choose to pay it monthly, or pay it off all in a lump-sum. Just like every situation, the sooner the better.

Car Title Loans: The Pros and Cons 

It is very helpful to analyze the pros and cons of a car title loan before you decide to take a loan out. Learning about your financial investment before you finalize anything is a great financial tool to success. A borrower must consider their options fully before making a decision.

If you go online to most car title loan companies and read their "about us", "apply-now", "FAQ" pages you will see how bias their information really is. This is called false marketing. Just like the terminology "false advertising" most of these companies never state the entire truth about their company. They may hire outsourced journalists and columnists to write their content. Read the content before you make your final decision. If the content is cheesy and uses imagery in their content, the company is probably bullshit. Writing jargon in articles, is not something to brag about, but come on? Really? This is 100% needed! An example of poor imagery content may be: "Tired of thunderstorms and rainy days, get a car title loan today, and turn your day into a bright-sun shiny day". The content shouldn't be a story, if the borrowers really wanted to read a story, they could take their "nooks" out and read an article from "Reader's Digest". The content should be straight to the point, to get the borrowers' to want to receive a loan from the car title loan company.

The Pros of Car Title Loans 

The most clear-stated pro would be the advantage of receiving instant cash. Anyone could walk into their local 7-11 or convenient store and purchase a state lottery ticket. That process is extremely easy; however the probability of receiving a large amount of cash instantly is extremely low. The probability of receiving instant cash at your local auto loan company is extremely high. Unlike traditional banks, and credit bureaus, another advantage of the car title loan industry is NO CREDIT CHECKS. Most of the time, borrowers come to tile loan companies because they're stuck in financial situations. Their credits scores are usually poor at this point, after collections have had to continuously made adjustments because they couldn't pay their bills on time. That is a major "Pro" for a car loan company. No matter what the borrower's credit score may be, the borrower is still qualified to receive a car title loan. Another pro of the car title loan industry (which was actually mentioned previously in the article) is since the borrower is putting their car loan as collateral, it is easy to convince the lender to extend the loan to you.

How does a borrower qualify? Like stated before, there is NO CREDIT CHECKS, therefore the borrower is already pre-qualified for a loan at this point. However, the borrower must meet the following requirements to receive a car title loan. The borrower must be over the age of 18 years old, the borrower must be the owner of their vehicle title, they must have already paid off their vehicle liens-free, and they must have a valid driver's license or state identification card.

How long does the application process take? The simplicity and speediness of the application process is another "pro" or advantage for the car title loan. The average online application just asks basic personal questions pertaining to the borrower's vehicle, and location. The application roughly takes about a minute or less to complete. Most companies get back to the borrower within a few minutes of submitting an application. Once the loan representatives read through the borrower's application information, they quickly give the borrower a call based on the number provided in the app, and go over the details and process of obtaining a loan.

How long does it take to receive the loan? Every company depends and probably has a different loan process, but it usually takes within 24 hours or less to receive the "instant cash". That is another advantage, or "pro" of the loan industry. Traditional banks, and credit bureaus, can take up to a few weeks to finalize the loans. By that time, the borrowers would have already lost their homes, been in serious debt, etc. Taking out a car title loan is the best financial choice. Check.

The Cons of Car Title Loans 

Now that we looked at the Pros, let's look at the Cons of car title loans. Honestly, no financial decision is 100% perfect. Nothing is perfect, but some things get close. If this article was based on telling the reader that the car loan industry is the best financial choice, then the article would be full of shit. That's why the title is "key-worded" "Choosing the 'RIGHT' financial service. Not the BEST. The "Right" financial service. Remember, nothing ever is perfect, especially in finances, but some things come close.

The cons of a car title loan are indeed straightforward. The borrower is basically handing the ownership of their personal transportation over to the car loan company as collateral in order to receive a cash loan. As stated before, the borrower can face extremely high interest rates- depending on the company. If you have poor to no credit because of your financial situation, and learn that you cannot pay-off the loan you will be stripped of your vehicle, and instead of being able to alleviate your debt, you will fall into even more debt. At this point, the collections agencies will be completely done with you. The saying "follow the directions, and it'll turn out right" is extremely important and accurate when obtaining a car title loan. A borrower may also be at risk of taking out a loan from a disreputable company that will charge extra fees on top of the accrued interest, or instant hidden feeds that were written in the fine print in the contracts, that are almost impossible to see, unless observed carefully with a magnified glass. Thus, a borrower must be careful before making a finalized decision in any financial situation, especially when their biggest ticket possession is being used as collateral.

Now that this article has closely examined the Pros and Cons of the car loan industry, it is up to the borrower to make the right financial decision. The final decision is the hardest part. The final step is always the hardest part because the borrower now has to make a final decision whether he or she wants to take out a car title loan or choose to use another financial recourse. Honestly, after everything stated in this article, it would seem to be that choosing a car title loan is the right financial service. Again, banks and credit bureaus take too long to process a loan, so why choose them? If the borrower is in need of fast cash, they might want to consider choosing a car title loan.