Car Loans- Things you may need to consider

You can get a car loan from several places. Car loans are provided by banks, credit unions, building societies and private lenders. Many car yards offer car loans as well or alternatively you can contact a broker who will do the searching for you. Over recent years people are finding the convenience of applying for online car loans. Whichever way you choose there are some things that you may want to consider beforehand.

Pre Approved Car Loan
If you know how much you can spend it may help in negotiating a better price for the car. Another good thing about pre-approval is that you won't be able to spend more than you have.

Check out the application fees
These fees range from lender to lender. The thing to be aware of is that you are not paying a higher rate on interest for the sacrifice of no application fees.

What are the ongoing fees?
Often lenders will charge you an ongoing monthly fee. Many call this an account keeping fee and could be up to $20 per month.

Interest Rate
Make sure you know the interest rate. Over the term of a loan a lower rate can save you hundreds of dollars, even if it only .5 percent.

Can you choose between a fixed or variable interest rate?
People who would like to have the option of making extra payments on their car loan may favour a variable rate of interest. On the other hand a fixed rate may give some people the peace of mind in knowing exactly how much each monthly payment will be.

What if I repay my loan early?
Make sure that you know the penalties for early repayment of your car loan. These should be clearly outlined in the contract and understood before signing.

What if I miss a payment?
There are likely to be penalties if you miss a car loan repayment. Make sure you know how much they are although it is best avoided and can have a negative impact on your credit file.

Direct Deposit Payments
Loan repayments are often directly debited from your account on a specific date each month. Make sure you always have enough money in your account to cover these repayments. It is a good idea to have a least 2 months of payments sitting in your account at all times.

Car Loan Info Australia is a reputable online lender that can assist you with any car loan needs regardless if you have good or bad credit.

Links and Resources

Credit Reports- How did I get Bad Credit?

We often hear people mention the term Bad Credit but many of us are a little unsure of its true meaning.

What is Bad Credit?
Bad Credit is when negative listings or lack of credit history on your credit report cause a low credit score. This may result in denial of credit completely or in some situations only qualifying for a loan at higher interest rates. Low credit scores may be the result of a previous loan default or even from not paying a bill on time. Banks and other lenders are also know to deny people with a bad credit file from opening up a cheque account. This would especially make things hard for potential business owners.

What is in a Credit Report?
In much the same way that a resume displays your work experience to a prospective employer, a credit report provides prospective creditors (and in some cases employers and insurers too) with a detailed picture of your credit history. And like a resume, your credit report can influence whether you receive what you are applying for.

You can almost guarantee that if you have ever made a credit card, personal loan or insurance application that there is a credit report about you. This report contains information like your address, the way you pay your bills and also if there have ever been legal proceedings against you. Bankrupts will definitely appear on this report.

The credit report agencies then sell this information to creditors, insurers, employers and other businesses. The information is then used to work out whether you will be approved for a loan, credit card, insurance a job or even real estate.