Don't settle for the first auto loan quote that crosses your path. There are various methods now-a-days in which individuals can acquire an auto loan. Be sure to compare all the pros and cons of each method to ensure you are getting the best bang for your buck. There are four main ways to acquire an auto loan quote: dealer loans, credit unions, home equity, or with online quotes.
Dealership Auto Loan
Dealership loans are fairly common. In the past, a dealership loan was the only way to finance a vehicle. Times have certainly changed! One thing is certain, dealership loans are convenient. While you sit and fill out papers for the vehicle you will purchase, you might as well fill out papers for a loan to finance that car. Yes, dealership loans are quite simple, however, sometimes they are not in your best interest. Convenience doesn't come free. Many times, these loans have higher interest rates than if you were to find a loan by yourself.
Credit Unions
Credit unions are a great option for auto financing. They can quote much larger loan amounts for a lower interest rate that an auto dealership. Also, the extra time you will spend with a credit union is not overwhelming. Many times credit unions can approve you for a loan in mere minutes. Although one extra phone call needs to be made, there is not much effort on your end.
Home Equity
A home equity loan is another option for car financing. Using a home equity loan allows you to purchase your vehicle while using your home as collateral. On paper, home equity loans may appear to have a higher interest rate than standard car loans. However, the fact that the interest you will pay is tax deductible may present significant advantages.
Online quote
One of the quickest growing industries online is the financing industry. Now, you can simply go to a credit website and compare quotes and loan terms. There are even websites where banks and lenders will compete for your business. This is beneficial to you because it means lower interest rates and shorter auto loan terms.
The moral of the story is: be sure to check all options before signing an auto loan. There are many different methods to get auto financing quotes. Depending on your situation, each auto loan method can present certain advantages and disadvantages.
Source: www.isnare.com
| Janet has a FICO score of 780 and: | |
| Has six credit accounts, including several active credit cards, an active auto loan, a mortgage, and a student loan | Has ten credit accounts, including several active credit cards, an active auto loan, a mortgage and a student loan |
| An eight-year credit history | A fifteen-year credit history |
| Moderate utilization on his credit card accounts (his balances are 40-50% of his limits) | Low utilization on her credit card accounts (her balances are 15-25% of her limits) |
| Two reported delinquencies: a 90-day delinquency two years ago on a credit card account, and an isolated 30-day delinquency on his auto loan a year ago | Never has missed a payment on any credit obligation |
| Has no accounts in collections and no adverse public records on file | Has no adverse public records on |
| Joe | Janet | |
| Current FICO score | 680 | 780 |
| Score after one of these is added to credit report: | ||
| Maxing out a credit card | 650-670 | 735-755 |
| A 30-day delinquency | 600-620 | 670-690 |
| Settling a credit card debt | 615-635 | 655-675 |
| Foreclosure | 575-595 | 620-640 |
| Bankruptcy | 530-550 | 540-560 |
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