The Best Way for People to Use Loans to Finance a Car

So you are in the market for a car, but you've got bad credit, or your cash flow is hurting from the debt you've built up over the years. We will take a look at a couple loans you might be familiar with and see which one would be best for your needs. Although your number one goal is to own a car, you ideally would want a loan that serves two purposes. One is a loan you can actually afford, and the other could be one that might help improve your credit score.

·         Guaranteed Auto loanFinancing of Cars are direct from an auto lot. They consist of a down payment and a fixed number of loan payments over time. These payments are due every week and are made by you in person at the lot you purchased the car.

·         Bad credit auto loans are also called second chance car loans. They are usually only available thru a franchised new car dealer. Although the dealership sells you the car the financing usually takes place through a lender. In this case you will be making payments to the lender once a month through the mail or an electronic payment from your bank account.

·         Deciding between these two types of car financing options is really up to you and your situation. Would you like to work directly with a dealership to finance a car, and make smaller payments on a weekly basis, or would it be preferable to work with a lending company, improve your credit score and pay on a monthly basis.

Advantages and Disadvantages of Bad Credit Auto Loans

The biggest advantage of a bad credit auto loan is that your lender will report your payment to the credit bureaus. The selection of new cars will also be better. You can get loan terms starting at 24 months and can extend to as a many as 60 giving you a much wider choice of vehicles to choose from. However not all franchised dealerships offer this service. Because you are dealing with newer vehicles the selling price of the cars will be generally higher. Remember too that any problems with your payment history will be reflected in your credit score as well as your Fico score. 

Click Here Know About Three Steps to Take  Refinance Of Car Loan  

The Advantages and Disadvantages of Guaranteed Auto Loans

The advantage of guaranteed refinanced auto loan rates is that the cars are usually less expensive. Many people actually prefer to make a payment on a weekly basis. You are making your payment face to face with your agent and you will know each other personally. Guaranteed auto financing often requires no credit check before selling a car, so you might be able to have bad credit and still take out a loan to own a car. However, most dealerships don't report your payment history to credit bureaus. The cars you will be offered are typically older with a higher mileage. For most people it is not convenient to visit the dealer every week to make a payment and the rental terms range from 12-24 months limiting your options for available vehicles.

You can find great auto loan online refinancing options at credit-yogi.com. After you've purchased a vehicle remember to always make your payments on time. If run into trouble down the road don't hesitate to call credit-yogi.com at 1-866-964-9644 to learn more about financing cars and bank repossession. They are available any time for a free consultation.

Some Awesome Benefits to Refinancing an Auto Loan

You've come across some money problems lately. With just a bit of cash in hand many of those problems might go away, but how will you find this money? Why not take out a loan? Are you worried about your low credit score? Many people think that a credit score is the ultimate determining factor towards getting any kind of loan. However what most people aren't aware of is that auto loans are cheap and easy to get for anyone regardless of a credit score.

• Auto loan refinance rates are at an all time low. Just like you would when you visit dealerships, you will want to visit several lenders and get several quotes. We’ll explain more about that later.
• Many lenders won’t bother with a credit check when you visit them. However a good credit score always helps. If you can work to build up your credit score it will only help in the long run.
• Go online. With the internet available you can research many companies before you ever walk into their office. You can look up customer reviews and even inquire with the Better Business Bureau about a company’s history.

You will save money in the long run

If you are currently paying a high interest rate on a loan try to refinance an auto loan. There could be some costs associated with the transfer of title or a prepayment penalty. However because you will be paying lower monthly payments, the long run prospects for saving lots of money is great.

How does it work?

When you refinance an auto loan your new lender will pay the original lender whatever is left on your current balance and creates a new loan right there for you. Obviously before you go and take out a new auto loan, make sure that the newly reduced monthly payments will cover everything that’s left from that previous loan such as the insurance. If the difference in the monthly payments is minimal, what’s the point of refinancing?

Online autorefinancing is a great way to apply for loans. Auto loans through the internet are faster, and might help you obtain a lower interest rate. From the convenience of your home, internet cafe  or local library, you will be able to request multiple quotes from several different online lenders at the same time. Within 24 hours you will have a number of quotes to work with.

Be a Price Shopper!

Once you've gotten your quotes in front of you choose the one with the lowest annual percentage rate. This is where you will want to do your homework and research further online to see if what you have been offered is fair. By getting to know the world of guaranteed finance for cars you will get to know how it all fits into your personal economy. Just remember that once you make the decision to get a car and use a refinanced auto loan to make your payments on time every time. By missing even one payment you will be in danger losing your car to repossession. Avoiding car repossession is a process you want no part of.

To learn more about financing an auto loan visit credit-yogi.com. They have many credit and debt related answers to your financial problems and are available any day of the week for a free consultation when you call 1-866-964-9644 today.