What You Need to Know to Find the Best Car Loan

To help you find the best car loan you need to understand how APR and loan terms work.

- APR - this is the interest rate at which the lender is offering funds

- Loan Term - this is how long you have to pay the money back which you have borrowed.

One of the most cost effective ways to borrow money is to balance APR and a loan term. Many low APR offers are only available on long term products or are subject to many underwriting conditions. At first these seem like a good deal but when you calculate how much interest you are paying over the whole loan, especially once you have confirmed the true APR, you may find that it is actually better to take advantage of the fixed rate offered to you through the dealership.

Setting Your Budget

The best car loan is not just about finding the cheapest APR. You also need to make sure the product can work for you and this means setting your budget. Too many people get carried away and take out finance deals that they cannot really afford. You must never borrow more money than you can afford to repay out of your monthly income. This just puts a huge strain on your finances and makes it very difficult for you to meet your financial obligations. Here are a few tips for helping you to set your budget:

- Existing Repayments - look at your existing credit products including credit cards, store cards, personal loans and mortgages. Calculate how much you need to meet these repayments each month.

- Essential Bills - make a list of all your essential bills such as utilities, groceries and fuel.

- Extras - also make a list of any extras you spend on during the month such as gym memberships, meals out, clothing etc.

- Income - calculate exactly how much money you have coming in each month to fund your spending.

Once you have made a comprehensive list of all your incomings and outgoings you will be able to calculate how much you can afford to repay comfortably on your new car loan.

Deal Comparisons

One of the most effective ways to find the best car loan is to shop around and compare deals. If you don't have a lot of spare time for this then you can use an online comparison websites. These offer a quick way to compare estimated quotes. You will be able to put in how much money you want to borrow (and for how long) and search through suitable products.

It is important that you compare deals across the market before you make any decisions. If you already have personal loans or a mortgage then your current lender may be able to offer you a good deal to finance your new car. You may also find that local dealers can provide some very competitive rates. If you shop around you should find a finance option that is right for your needs and circumstances.

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Why You Should Look Into Car Repair Financing

If you have had a significant breakdown on any of your vehicles, you know how costly car repair bills can be. The worst part is that virtually nobody is prepared for the costs when they arise. Fortunately, there is always the option of Car Repair Financing to ease the strain on your wallet. So why should you choose to finance your repair bills?

Peace of mind

I have been using Car Repair Financing for quite a long time now, and can tell you personally it is the only way to go. The best part about it is the peace of mind. It is quite comforting to know that if and when your car does break down, you will have a resource that you can fall back on for financial support. This allows you to stay on your budget from week to week, because if you do need a repair, you won't be paying for it all up front. I don't know about you, but before I started using car repair financing, those looming repair bills were always in the back of my mind. Now I live and drive worry free.

Easy on the wallet

This is obviously where you will see the biggest impact. Some repair bills can get really outrageous. I once had a bill for a transmission for over $5,000. But when you break that $5,000 dollars over a period of time, and make monthly payments, you really don't feel the strain on the wallet. So even if the kids need new gym shoes, or the roof has sprung a leak, you can take care of all your responsibilities when you take advantage of Car Repair Financing.

Decide Your Own Terms

Some lenders will work with you to set your own terms for payment that work best with your budget. Lets be honest, there really isn't a point to financing if you can't even afford the monthly payments. Setting my own terms is really what made this whole thing come together for me. It's just a tremendous luxury to have when your payments are worked around what you can afford. This might be the coolest thing about all of it, but I do want to make you aware, this isn't available with all lenders.

If you decide to go with Car Repair Financing, just remember that it is an important decision and should not be taken lightly. You should always do your homework on the lender, and if you don't feel comfortable, stay away.

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You Should Consider Financing Your Car Repairs

Financing car repairs is a tremendous idea when looking to save on repairs, but you do have to be smart in your decision when shopping for the loan. Often times you will find that some lenders like to take advantage of their customers, so proper research is required when financing car repairs.

Usually the single most important determining factor in getting approved for a loan is your credit score. The quality of your score will determine the interest rate you receive, and obviously the better the score, the better the rate. Unfortunately if you have a bad score, the interest rates can be inflated to unfair levels, and make taking out a loan difficult.

You can avoid these ridiculous interest rates by doing a couple things. If you can, always go with an asset based lender. These lenders focus very little on your credit score, therefore the interest rates are fair and equal for all applicants.

If you are not going with an asset based lender, make sure you only apply for what you need. When financing car repairs, every little bit you finance is going to affect your payments, so only apply for what you absolutely need. If you have any amount of money to pay a portion of the repair before taking out the loan, do that. This will lower the principle amount that you must borrow, therefore lowering your payments.

Another option to look at when financing car repairs, is to negotiate. If you are unhappy with your interest rate, simply talk to a loan officer and see if they will budge at all. Often times that officer will shop around for you to find the lowest rate and payments. The only drawback to this is that sometimes they will charge a commission on the loan for their work. If after paying the commission you still have a better rate than before, go with it and be happy.

If you are financing car repairs, and still having trouble getting the rate and the payments you require, don't be afraid to go elsewhere. Remember this is your money, and you never need to feel pressured into accepting a loan. If you feel you are being pressured, simply walk away and look to another lender. The key in financing auto repairs is to be patient, but diligent. If you adhere to these principles you will find the process going smoothly and you should be on your way to financing car repairs.

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Understanding Long Term Bad Credit Loans

In the age of the internet and the variety of choice that this medium offers, there are a lot of options out there for those with bad credit who are looking for some financial relief through a personal loan. Though many people associate bad credit loans with short term, payday-style loans, there are actually long term bad credit loans available online as well.

However, despite the availability of these long term loans, there are also many factors that as a borrower you need to consider in the research process. This article will review the basics on long term personal loans for those with bad credit to help you get the best deal possible.



Long Term: A Definition

The idea of a long-term personal loan is especially appealing to those with little wiggle room in their monthly income. Oftentimes, the money that we need to provide financial relief is not as simple as a getting an advance on a paycheck or taking out a small amount of cash for a month or so. If you are in a position where you need a larger amount of money, then you will also need a longer term to pay it back - think years, not months.

The problem that this presents is the interest rate that a loan will accumulate over time. The longer that it takes to repay a loan, the more interest it will accrue. Therefore, shopping around via the internet is essential in this search.

Bad Credit Lending: Special Circumstances

The idea of a good interest rate is even more complicated for those with bad credit. Basically, your credit is a major factor used to determine the interest rate that a lender will offer. It is important to know going into any lending process that any advertised interest rates for those with good credit will not be available for you. You do have additional options, however.

1. Take Your Time

First, if your need for money is not immediate, you can take steps that will improve your credit over time. This will help with your loan application in two ways. First, your credit will be better. Second, your efforts will reflect well on you as lenders see you as responsible.

2. Compare Options

Another option, for those more pressed for time is to make sure that you contact more than one lender. A general rule is to generate a list of 3-5 potential lenders and compare the rates and terms that they offer. Some may be willing to negotiate if they know what their competition is offering. Either way, you get a better picture of your ability in the lending world by talking to more than one person.

3. Use Collateral

Finally, you have the option of opting for a secured loan as a means to generate a lower interest rate. Secured loans are those that leverage the money that you borrow against real property such as your home or car. This way, if you default on the loan, a lender can fall back upon the value of your collateral. This means that they can repossess your vehicle or home.

Final Thoughts: Lending and the Internet

As I have clearly emphasized throughout this article, the most important tool that you can use in looking for a long term loan is the internet. There are so many lenders available today who will help you out depute bad credit. Use this variety to your advantage and make sure that you get quotes from many different lenders before deciding upon the long term bad credit personal loan right for you.

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Advantages and Disadvantages of Online Loan Application

Getting a loan from the bank or other institutions can take a while before you get an approval. If you are in need of fast cash, then you may take into consideration getting an online loan application. You will no longer need to wait for a week or a month's time to get an approval for your needed loan.

It may feel like an online loan is such a great way to have money fast. However, together with the many advantages, it also has its downsides. So what are the advantages and disadvantages of an online loan?

Advantages

Let us first look at the benefits that you can enjoy when getting this type of loan.

1. Easy approval - Compared to other types of loan, it is much easier to get an approval. Online lenders often have low criteria which you can easily meet in order to get an approval. This can include having a stable source of income, a bank account and being of legal age.

Even if you have bad credit, there are online lenders that offer online loan services that are tailored for your needs. If you apply for a loan from the bank with a negative credit rating, your application will most likely end up rejected.

2. Less hassle - The tiring part when applying for a loan from banks and other institutions are the paper works that you have to submit and fax to them. You will need to submit the right credentials in order to get a loan approval. However, when you apply for an online loan, you don't have to undergo the same tiring tasks. You will only need to fill up an online form and you're done.

You no longer have to wait in line or travel personally to the bank or other institutions in order to apply for the loan. This saves you both time and energy, as you can do it comfortably in your own home with your computer.

Disadvantages

Although there are a lot of advantages that may make an online loan application very attractive, it also has its downsides.

1. High fees and interest rates - Professionals would advise you not to get this loan, unless the need is urgent. Online loans have higher interest rates and fees, compared to normal loans.

Aside from the high interest rates and fees that you have to pay as you apply for the online. You will also have to pay a fee if you are late in your payment. Most late repayment fees that are charged by online lenders are quite great that they can reach up to double or triple the amount that you have borrowed.

2. Short repayment course - Normal loans from banks and other institutions can give you a repayment plan that divides your debt payment in a long span of time. Repayment can be done within the span of a year or two when getting a normal loan. An online loan however, requires you to settle your debt within a shorter span of time. it can be within two weeks or a couple of months.

3. Vague terms and condition statement - In some loan services, there may be certain terms and conditions that place you in a high risk situation. This is often intentionally hidden or made unclear, since they don't want you to know about it.

Although useful, there are things that you need to take into consideration before getting an online loan application. You should always weigh the pros and cons before deciding on anything.

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