Auto Loan Secrets

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Bad Credit Credit Card - Tips On Improving Credit Score
Credit cards are often the first step for a consumer to build their credit score. When you make regular payments with a small credit limit, lenders will be more willing to lend you larger amounts. Before you jump out and open an account, make sure you don't have too many credit lines open or otherwise hurt your credit.

Pick A Good Card

Credit card companies offer several diff... Read loans article



Countrywide Home Loan
Mostly likely when you get ready to buy a home, you will not be able to just write a check or plop down a briefcase of cash to pay for it. You will want to borrow money and make monthly payments on it, right? Likely then you will be taking out a home loan, and it is a real possibility that you will do so from Countrywide. A Countrywide home loan is one you very well may end up with once you have g... Read loans article



Auto Loan Secrets
If you find yourself shopping around for an auto loan there is much to consider before you ever sign the dotted line.

The first thing to consider is if you want to pay a down payment on the vehicle. Many lenders today don't require a down payment but it is still a good idea to pay as much as possible, initally. The more you pay for a down payment, the lower your payments may be on the loan.

If you have a used vehicle you can trade-in, the money you get for the trade-in can be added into the down payment. Don't expect to make a lot of money on your trade-in unless your car is in absolutely perfect condition. Any cosmetic flaws or mechanical work needing to be done on your old vehicle can significantly lower its potential trade-in value.

The next thing to consider is what your interest rate will be on the loan. If your credit is good you may qualify for a loan within the 4-8 percent range. If you have subprime credit the interest rate on your loan could jump higher than 20 percent. The percentage rate you pay on the loan will play an important factor in how much your monthly loan payment will be.

You also have to consider how long you would like the loan term to last. Many auto loans are usually available with anywhere from 3-6 year terms. The shorter the loan term, the larger the monthly payments will be. On the flip side, the total price you pay for the loan will be cheaper than a loan with a longer term. You'll pay less in interest on a loan with a shorter term.

Never take out an auto loan with a term that's longer than the amount of time you plan to keep the vehicle. Otherwise, you'll end up throwing away money on a vehicle you no longer own. Also, if possible, try to get a vehicle with a warranty that runs throughout at least most of the term of the loan. You don't want to get stuck paying for costly repairs at the same time you're paying off your auto loan.

The most important thing to consider before taking out an auto loan, is how much you can afford to pay for the loan on a monthly basis. Kelly Blue Book and Capital One suggest no more than 15-20 percent of your monthly budget should go toward your vehicle. If you'll end up spending more than that, even with a longer loan term, you should consider looking for a cheaper automobile.

By considering the many factors that influence the true costs of an auto loan you may save money in the long run and improve your credit rating. If you do your homework before signing the dotted line, you'll find a loan that is right for you.

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John Campbell is the writer and editor of CashBuzz, A financial portal for the rest of us. Check out http://www.cashbuzz.com for the latest articles on money management and tips and tricks that can help improve your finances.

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Auto Loan - Beware of Shady Lenders

If you have a recent bankruptcy but need an auto loan, you may be surprised at how easy it still can be to get approved for an auto loan. Because the bank can protect themselves by using the vehicle as collateral for the loan, it's much easier to get vehicle financing with past credit problems than it is to get a new credit card or another kind of unsecured loan.

There are many finance companies online competing for your business, to finance your vehicle. Just beware of unethical lending practices. People with bad credit are often prey to lending scams. Bad credit borrowers have fewer lending options than other borrowers and some finance companies take advantage of that fact. Here are 3 things to do to protect yourself from an unethical auto finance company.

1. Compare Rates Among at Least 3 Different Lenders Online - If you have 3 or more loan offers to compare, you are much less likely to take an offer from a lender who is charging excessive interest rates. If you have 3 or more interest rates to compare, you will have a good idea of what the average interest rate is that is being offered to people with credit problems for auto financing.

2. Get Financing Before You Visit a Dealer - If you are going to buy your car from a dealer, make sure you get your financing before you actually visit the an auto dealership. Dealers and lenders often make agreements to work together to charge the borrower a much higher interest rate than they could otherwise get by shopping around. If you have your financing ahead of time, you won't have to accept the financing they offer you there.

3. Apply With Reputable Lenders - If you are applying with lenders who are established and reputable, you minimize your chances of being taken advantage of.

See our list of recommended auto finance companies online by visiting, Recommended Auto Loan Companies Online.

Carrie Reeder is the owner of ABC Loan Guide, an informational website about various types of loans.


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Auto Loan Secrets
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