Getting Your Dream Car is now as easy as 1-2-3!
Gone are the days when getting your dream car remains nothing but a far-fetched dream. Today, you can look for the best car loans that will help you stop dreaming and start driving at the soonest time possible!
Two Types of Car Loans
There are two types of car loans available today, namely unsecured car loan and secured car loan. A secured car loan requires you to have your newly acquired car as a form of collateral. In case you failed to make the right monthly payments to the loan, the lender will repossess the vehicle, and sell it to recoup their loss. Such loans often come with lower interest rates and have flexible payment schedules. On the other hand, an unsecured car loan doesnít require any collateral. You can apply for this loan in a bank, car dealer, or lending broker. Most of the time, these loans come with higher interest rates, and these are usually more difficult to obtain.
Direct or Indirect
Aside from the choice of unsecured or secured, car loans can also be indirect or direct. A direct car loan means that the bank will give the loan directly to you. An indirect car loan means that the car dealership will serve as an intermediary between you and the lender.
Applying for Car Loans
When you apply for a car loan, see to it that you have all the important documentation with you. Make sure that you have your pay stubs, a copy of your credit history, your W-2, and other appropriate proof of income. In case you donít have all of these things, or if you have a bad credit history, you might want to look for a co-signor. Choose someone you can trust and has a good and clean credit history.
You can try our online car loan calculator to calculate your emi and interest rates.