Buying a new car can be a time of great anticipation...until you try to get a car loan. There are so many fees, interest choices and time lengths that you can easily get fed up and decide not to buy a car at all! If you invest a little time learning the mysteries behind car loans you will find it's not such a confusing subject at all. Below are some helpful tips that will help you understand the ins and outs of car loans in no time.
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| Car Loans |
Most vehicle loan institutions mandate a minimum of $10,000 to be borrowed over varying amounts of time. You may or may not be expected to pay a deposit on the loan. Most car loans are available for used or new cars, purchased privately or for a business as long as they are less than seven years old.
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| Car Loans |
There are two main types of car loans you can apply for: secured or unsecured. Each have definite advantages and disadvantages, so make sure you read the details carefully so you know what you're getting into.
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| Car Loans |
These are car loans that take something into consideration as collateral against your loan debt in the event that you default on your payments. In this case, your car will be used as collateral.
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| Car Loans |
A car with bad credit, just like any other car, will give you the ride you want. Okay, they might not be served on a platter but if you need a car.... but they are worth the ride. Customers suffer from bad credit circumstances do not mean they are bad people. It only means things happened! And every loan lender that is providing you with bad credit car loans do understand that. With car loans for bad credit you not only get the car you want there are added surprises on the runway.
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| Car Loans |
Chances that you are getting Bad credit car loans are extremely bright. Banks, credit unions, finance companies all are providing loans for bad credit. People who would not qualify for bad credit car loans just five years ago can now easily meet the criteria.
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| Car Loans |
When a borrower has bad credit, it will be a good start to begin with credit report. Every borrower is assigned credit score based on his performance with previous loans. It is a three digit number that most of the lenders use to evaluate the risk while lending you car loans. Each one of the credit bureaus - Equifax, Experian and Trans Union will have a copy of your credit report. Most lenders use Fico score which ranges from 300-850. Fico score 580 -500 and less means bad credit. This means you are heading for bad credit car loans. Now knowing your credit score is important for many lenders can take advantage of your ignorance.
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| Car Loans |
Okays, assuming that you do know your credit score - let's talk about bad credit car loans process. There is not much difference, yet there is a significant difference. Interest rates and down payment is the place where real difference shows. Interest rates with bad credit car loans will be higher as is the case with any bad credit loan. So there is no escaping that. Interest rates for Bad credit car loans [http://www.easyfinance4u.com/secured_car_loan.html] would vary with credit score and will range from 5%-26%.
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| Car Loans |
Down payment depending on the severity of the bad credit can range from 20%-50%. Bad credit car loans are short term loans. A down payment is a good way of negotiating bad credit car loans interest rates in your favour. Even small down payment can open some seriously good options for bad credit borrowers. Bad credit loan term will range from 2-5 years. Extending it further won't be beneficial in financial terms.
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| Car Loans |
Not every loan lender will be offering bad credit car loans but there are lenders who are ready to take the risk. You will find many lenders offering bad credit car loans. Therefore, it becomes necessary for you to search. There are many lenders who would make false claims. Look around for interest rates and terms offered. Compare the various bad credit car loans and then opt for the best one
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| Car Loans |
The best way to protect your investments is knowledge. An uneducated lender will always pay more for bad credit loans. First know the real cost of the car you want to purchase and add the dealer's profit. This will be the bad credit car loan amount you will be applying for. Make sure you can afford it. Just because you can get bad credit car loans doesn't mean you have to take it. If you have hesitations regarding repayment refrain from borrowing until when financial condition is better.
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| Car Loans |
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