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Sat, Feb 5th - 2:28AM

Which Factors Affect the Auto Loan Rate?

With new models of cars coming out every month, temptation is easy. The desire of owning your own vehicle may reach a peak even when you know you don’t have the money to buy it. Getting an auto loan is not an easy task and there are various things that are considered by a lender before your loan is sanctioned. Even if you do get a loan, a too high interest rate can cause trouble in your monthly budget. The factors that affect the Auto Loan Rate are as follows.

>> There are basically two different kinds of car loans, secured and unsecured. In normal cases, the rate of interest for an unsecured loan is higher than a secured loan.

>> Deciding on a used car will get you a higher rate of interest than a new one, though it may only be by a margin.

>> You can decide on a fixed or a flexible interest rate. A fixed rate is where you have to pay the same interest throughout your loan term. In case of a flexible loan, the interest rate depends on the rate prevalent in the market at that moment. The latter may get you a lower interest if you are bold enough to take a risk.

>> Usually you will have to pay a down payment when you get the loan. It is usually about 25% of the total amount of the loan. If you can increase that amount, your interest rate will automatically go down.

>> The rate of interest is also dependent on the actual price of the car. The higher it is, the higher the rate of interest.

>> The credit score of a person is perhaps the single most important factor that decides the rate of interest. A person with a stellar credit history will be able to enjoy a much lower interest than a person with bad credit. This is because the auto lender presumes that the latter may again default in payments which lead him to increase the rate to cover his risks. If you have bad credit, its better to wait for sometime to apply for an auto loan and clean up.

>> You can choose to pay back your auto loan in 36, 48, 60 or 72 months. The lower the time period you choose, the lower the interest you will be offered.

>> Lenders also look at the location the person is residing in while deciding the rate.

>> If you are a person with a bad credit history, ways to offset it would be to make a big down payment upfront for your auto loan, showing large cash reserves and increasing your income to debt ratio. Making regular payments on your credit liabilities will also reflect well on your credit score.

Shopping online for your auto loan is a very good idea. You will not only find many options from which to choose from, you will also find tips on how to get a low rate auto loans.


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Sat, Feb 5th - 2:28AM

How do Blank Check Car Loans Work?

For most people, a car is going to be one of the most expensive items they are ever going to buy. Few people have the kind of money required to buy a car. Getting a car loan is necessary. There are many lenders who are willing to offer loans for buying cars. If you are looking for a blank check car loan, you must know how it works and how you can get one that will suit your requirements. The few points below will help you know more.

1> A blank check car loan is a pre-approved loan from a bank or other lender which you get before you go to the dealership to choose a car. You have a specific amount of money as loan which you can spend and you even know the rate of interest you will be paying. You can choose any car within that range. This gives you power to choose and also keeps you from over-enthusiastic salespeople trying to up-sell you.

2> Experts will tell you that it is better to have a blank check car loan in hand before you start looking for the car you want to buy. It will prevent you from settling for something more than you can afford and getting rejected for a loan.

3> A blank check car loan will give you power. You can not only choose the car you want without worrying about auto financing BUT you can also bargain better with the car dealership when you have a specific amount of money in your mind.

4> But not all lenders will give you a blank check car loan just like that. They will want to know the specific model you want along with the VIN number and the year of manufacture. But still you will have a pre-approved loan in your kitty before you go shopping.

Now that you know more about blank check car loans, how do you go about getting approved for one? Here are a few tips you need to keep in mind.

1> Clean up your credit history: One of the most important deciding factors for getting a car loan will be your credit score. If you have an excellent credit history, you can negotiate with the lender for a lower interest rates. If you have bad credit for 6 months before you apply for second chance auto loan, making timely and regular payments on your credit debts will bring up your credit score.

2> Loan term period: It is better to get a higher interest for a short-term loan than a lower interest for a long-term loan. You will not want to pay for your car for the next 6-10 years of your life.

3> Contact your local bank, credit unions and online lenders and find out whether they offer blank check auto loans. Compare quotes and settle for one that suits you.

4> Once you have been approved, just do the paperwork and wait for the check. Shop for your car with confidence once you have it in your hand.


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