Within the complex world of vehicle financing, quick auto loans have their own place in common product lines offered by the general community of lenders. Quick auto loans are a general category of car or truck financing agreements that don’t involve a lot of lender research, paperwork or time spent waiting on loan approval. The money will often be in your bank account within 24 hours of your application.
The speed of approval depends on your credit score and your income, as they are the basis of all loans. The higher your credit score and the greater your income, the faster you’ll be approved. These are unsecured loans, meaning there will be no liens on any of your property.
There are so many companies offering these loans that the choices seem endless. You obviously need to pick one with a good reputation, though this doesn’t necessarily mean that it advertises a great deal or vice versa. Do a little research first to establish that the company is reputable and reliable.
When you apply, you’ll need some basic information including your social security number and other personal details. Fill forms out completely and with honesty, since it will be the basis of your application.
Based on your credit score and your income, you’ll receive a call or e-mail by a company representative. They’ll tell you what type of quick auto loan your income and credit history qualifies you for. If you have bad credit, expect to pay a higher interest rate than someone with good credit and a high income.
There is also a limit on the amount of your loan, which will depend on your income and ability to repay the amount.
Quick auto loan companies often say they specialize in loans for people with bad credit, and this is often true. However, if you have a low credit score and a troubled credit history combined with a low income, you’ll find that the loan you’re offered will be for a low amount and with a high rate of interest.
It’s important to make all your payments on time and pay off the loan promptly. Not only will it avoid problems with the loan company, but it will help improve your credit score. This is important for the next time you want to borrow money and can result in a lower rate of interest.
Although companies will offer loans of up to 60 months, depending on the vehicle you’re buying, it’s better to take a loan for a shorter period because you’ll end up paying a lot less in interest. Generally, a 60-month loan only applies to a new vehicle and lower periods are for used cars.
You’ll also find a difference in interest rates between new and used cars, with the interest rate noticeably lower for new automobiles. This is because lenders offering quick auto loans may not have time to do the more thorough research mentioned above, they may simply assign much higher interest rates to a loan. The interest rate will determine how much the car buyer will pay over the term of the loan, and ignoring the interest rate can result in a lot more debt for a car buyer.
Quick auto loan lenders also tend to include a great deal of fees and conditions in order to protect their investment in loans that are made without thorough research. Keep an eye on these terms and always look for how they may impact your financial situation later on.