Posts Tagged ‘Car Loan’

Chase Bank car loan- what you must know before taking a loan

car loanWhen you dream of your new car, nothing seems so important in front of buying it. Having a loan for your car can become really easy with Chase Bank, particularly if you have a personal savings account or checking account with the bank. This can help you lower the rate of interest up to 0.50%. To get the best deal for your car loan, you can keep the following points in mind:

  1. Shop for the car and loan separately

Prior to beginning the negotiation for the price or car, begin the process of loan application with the banks, credit unions, reputed online lenders, auto insurance company, etc. The credit unions may offer almost 1- 1.5% lower rate of interest than the bank, but if you are a loyal customer of Chase Bank, you can get a great deal too on Chase online login. When you have a pre-approved loan, you can negotiate with the car dealer much more strongly as you can sign the blank check instantly.

  1. Restrict the loan shopping period to two weeks

When you apply for a car loan, your credit score lowers whether you use the loan amount or your loan is approved. It makes it a little difficult to procure a loan at prime rates. However, if you apply for all the loans within two weeks, it is counted as just one enquiry.

  1. Know your credit history

You can know your credit history free of cost from some agencies. Else, you can also pay a small fee to know your credit score. Most of the times, the credit score you know and the one that your lender uses are same or close. A car loan can be purchased even at a lower credit score.

  1. Shop for the total amount of loan, not the monthly installment

When you shop for an auto loan, you should concentrate on the total amount of car loan rather than the monthly installments. Some lenders may induce you to have lower monthly installments for more number of months so that they can earn more interest for a longer period of time. On the other hand, when you focus on the total loan amount, you can calculate the installments later.

  1. Select the shortest tenure of loan you can afford

You do not have to extend the tenure of your loan if you do not need to. Since the car loan does not count as a productive debt, you must repay it as soon as possible. While a longer car loan may mean lower EMIs, but you have to pay it for a long time. A shorter car loan, if affordable, is the best option in the range of 4-5 years. A shorter car loan also means that you have to pay lower rate of interest.

  1. Shun the extras at the dealers

The accessories for a car may add a lot to the total car cost such as a music system, gear lock, center locking, etc. These accessories are essential and you must calculate their cost in the total expense.

Factors To Consider Before Obtaining A Car Loan

car loanThe choice to purchase a car comes with many considerations. Consumers usually think about features for their new selections or performance over a long period of time but ignore other concerns that could be just as important. Car financing is crucial to obtaining any vehicle. Understanding the factors involved in obtaining a loan can mean significant savings. Keep in mind that savings may be different for each potential buyer.

Employment
Many buyers fail to consider their ability to pay back an auto loan over a period of time. Certain jobs may be temporary or part-time which could lead to less income. Another possibility is job loss which often means missed payments. Thoroughly examine the current situation to determine if an auto loan is something that can be completely repaid at this time.

Credit Score
Low credit scores could be a significant reason why someone is denied a car loan or receives a high interest rate. There are three major agencies that maintain credit reports for each individual. Free access to these items are available several times each year. Obtaining as well as repaying auto loans is also a great way to improve lower scores.

Vehicle Price
Higher priced vehicles can mean that buyers are more scrutinized by financing companies. This can also lead to higher rates on these loans as dealers attempt to gain more profits. Always consider repayment options before selecting a certain make and model. Prices could change at certain times during the buying process. Anyone can look at cash for old cars for more vehicle options.

Deals
Special deals on car loans could include incentives or low financing rates for consumers. These offers vary based on many considerations, such as location. Buyers with a poor credit score as well as other issues could be completely denied involvement in the program or face much higher rates than others. Ask the dealership what their policies are concerning specials and their involvement with financing companies.

Where To Apply For Loans
Dealerships have many programs in place with specific financing companies. These may not be the best deals for consumers. Look at banks as well as credit unions to see what is available for consumers. Many institutions present special deals or low rates for new buyers. Ask about any current incentives in place which could lead to great offers.

Scams
Be aware that some scams are on the market that target shoppers. Scammers present themselves as able to offer loans to anyone or change current terms. According to the Federal Trade Commission, [AUTHORITY URL:http://www.consumer.ftc.gov/articles/0255-auto-loan-modification-scams], this type of scam often involves people behind on their payments. If you’re unsure of a company or individual, ask for references as well as contact information for someone at their company that can verify details.

Many factors go into accepting and establishing the rate for a car loan. Each one can lead to higher or lower rates for buyers. Certain options may vary due to issues such as location. Check with companies to see if these considerations will influence any part of the process.