• Easy Car Loans: Just How Easy Are They?

    Many easy car loans are found via an Internet search engine. Many auto loans advertise themselves as being easy, implying the car loan process is simple and exactly what a car shopper wants in a financing option. However, one needs to examine if these loans are as easy as companies say they are.

    How the Loans Are “Easy”

    Lenders that advertise their loans are easy will state they do not charge any fees for applications, no down payments are required, and an auto loan approval is pre-approved, guaranteed, or takes only minutes. Lending companies may offer interest rates as low as 0% or state that good credit is not one of the important loan requirements.

    Easy car loan companies that can be found online or in a business office may state the only requirements they look for in a customer is that they only have a job, a phone and a social security number. They say they’ll grant a person a loan when every other lending company has rejected the customer as they do not use any banks or financial institutions for financing. The easy loan lender may also claim they are in the service of helping one reestablish good credit so one can get a better car in the future.

    The Reality

    Offers advertised and auto loan terms may appear to be just what one was looking for in an easy car loan. How could one not sign up for such a great deal? The great deal a few weeks later may look disappointing when one gets their auto payment bill in the mail and sees they are not paying the initial low rate promised. Many easy, pre-approved offers are declined after a credit check is done and it is found that one has poor credit. Some lending companies will then deny a loan or raise the awesome interest rate advertised to one that is disheartening.

    Auto financing companies have even been known to lie to a customer about their own credit rating, which can be found for free. A consumer knowing one’s own detailed personal and financial information can help them fight back against false or unfair changes.

    One may have great credit and qualifies for a low interest rate that will not change without a doubt.  That person may then discover on their first bill scads of fees: processing fees, application fees, customer services fees, fees for mailing the bill to one’s home, envelope-licking fees, tax fees, etc. Some of the fees may be one-time new service contract fees while others will reoccur during the length of the loan. The fees may take the place of the advertised low interest rates. If working with a dealership, the fees are revealed in the invoice and may add up to 10% of the total price.

    Some lenders that offer easy car loans are legitimate financing companies have a consumer’s best interest in mind, but many of are not. One needs to not be afraid to ask easy car loan companies the tough questions to make sure the auto financing experience is just that—easy.