Unsecured Car Loans
Are you not a happy owner of a four wheeler? Do you often miss out the bus while going to office?
You’ve always wanted to go with your family or friends on a long drive, but you don’t own a car, or you don’t have enough money to purchase a car.
Don’t worry! your tensions will be eradicated by Car Loan. Taking a Car Loan and owning a car will help you in almost every aspect of your life. A Car Loan is basically a loan which helps you to buy a car. In simple words, you borrow money from a bank or a particular lending firm, they pay for your desired car as a whole and in return you have to repay them in monthly installments with interest accrued.
Car Loan is of two types basically:-
1. Unsecured Car Loan- For this type of loan, you need to have a good credit score. Car finance company will go through your accounts and check your credit history and will make sure there is no consolidated debt left. Once you are all cleared, you will be given hold of this loan and monthly repayments will be cut from your salary with interest.
2. Secured Car Loan- This type of loan is basically for people with bad credit, and as the name suggest ‘secured’, your car will be taken as collateral. And you need to repay a certain amount monthly with interest. If failed to do so, your car will be taken under the possession of the lender and he may sell it later to cover up the expenses. People with bad credit score will have chance to improve their score by doing monthly payments timely.
So it’s better to have a good credit history to own a car then to have a car with a bad credit. You should always check your income and expenses before taking such a loan as there are maintenance, taxes and registration cost also. Basically, you should always pay high down payment, so as to decrease interest rate and monthly repayment amount.
Various steps for a car loan:- Credit check- You should usually check your credit before taking a particular loan. If you have any debt left, you should try to clear those first and then opt for loan for a car, as it will be another burden on you.
Decide your fixed monthly payment- After going through your salary and various expenses, you should decide the monthly payments to be made. You can decide the term for the full repayment and can pay installments monthly. Longer the term, lower the monthly payments. You should also insure your car from an insurance company.
Choose a suitable loan company- You should always compare companies who all are providing loans and select a suitable one with low interest rate. Make sure it is reliable. Finalize a car- After finalizing company, you should opt for a car. If there is no problem with the credit, you can go for your desired car. Complete the paperwork- Once you are done with everything. Complete other paperwork and go home with a brand new car. Benefits of Car Loan- You don’t have to pay whole amount. Pay monthly installments Once your income is increased, it will lessen up your burden. You can take as much as time you want for repayments. Car Loan lessen up your tensions, you can drive on your own and go where ever you want either with your family or friends. Car Loans are basically for middle class people and lower income groups. Nowadays, it’s possible for people to own a car and process for procurement of a car is easy too. Good luck and drive safe!
Take action now. Apply for an unsecured car loan today.