Have planned to buy a brand new car? Or, have you decided to purchase a new set of expensive wheels? Or, did your personal loan application get rejected? As a loan advocate, I have come across many people, who are confused if they should pick an auto loan or personal loan. If you are bewildered with such questions, trust me, you are lucky! As you read on, you will get a quick insight into the differences between car and personal loans.
Selecting a Car, Applying for Loans!
Did you know that you can apply for an auto loan, even before selecting a car? Patrons with firm requirements can apply for auto loans, without a second thought. Thus, you should analyze your needs and shop around for auto loan lenders. However, remember to check if your requirements are within the lender’s criterion. For instance, certain lenders would have restrictions on the kind of vehicle and brand they mortgage for. Thus, it is wise to know more about the lender; before making a loan application.
A pinch of flexibility
On the contrary, personal loans can be treated as flexible options with many possibilities. You can use the mortgage to buy anything! If you wish to buy a car and another sizable product, you should opt for a personal loan.
Are you financially strong? Need for a Cosigner!
Personal loan or car loan, you should be aware of your credit score. Perform a credit check and verify if your financial status has to be improved. Sometimes, it is wise to find a cosigner. This is because lenders tend to search for customers with a sturdy financial background. If you have a rich cosigner, who agrees to act as your collateral, trust me, the loan application process would become easy.
Decide Between Fixed and Variable Interest! The wise pick!
Car loans and personal loans have different interest rates. In most cases, car loans can be acquired for fixed and variable interests. When compared against fixed interests, the latter will help you save more! However, the amount you pay will depend on the loan, your income, the premium and time!
Avoid Hidden Charges! Act Smart!
Before you decide to incur a loan, remember to verify if the loan application process has hidden charges. Private lenders tend to surprise borrowers with unforeseen or unstated fees. So, to be on the safer side, you must act smart and remain alert at all times!