Student car loans : Unsecured Student Loans for buying a Car
January 26th, 2008
Owning a car is every student’s dream. It is true that the urge to drive one’s own car is a strong one and with the current boom is student car loans; it has only become easy to buy your own car sooner than you ever imagined. What is more is the fact these loans are easily sanctioned and the entire process takes a very short time. Let us look at what the entire loan process is all about.
Before you consider taking up a car loan, check for different interest rates that the banks offer. Not only this, also look for their terms and conditions for payment. The institution that offers you the maximum pay back time need not necessarily be the best one to take a loan from for they may have some hidden terms. Look at the fine print in any financial matter. Do not be in a hurry. You must remember the fact that you are opting for the student car loans because you do not have the necessary funds to buy the car without a loan. The loan in any case must be repaid with interest. So make sure, you have also planned as to how you would repay the loan.
To start with, the student who wishes to take a loan must first apply for the loan. This is called the application process. Application can even be done online. Many banks offer assistance in this process. A representative from the institution from which you intend to take the loan will help you in filling up the application. The application may require some documents as proof of identity. Keep all such documents ready. History of debts may also be asked for. Be honest when filling the form. Once the form has been filled, it is sent for checking by the concerned officials.
Checking the application form may take five days to a week. Once it has been checked, it may be sent back for the corrections to be made be you. If there are no corrections, the loan may be sanctioned. This step however takes some time and a lot of documents are asked for various reasons.
Student car loans may be paid all at once or in installments depending on the mode in which you purchase a car. If you are buying a new car and paying for it in installments, you may opt for receiving the loan also in installments. Interest rates on some loans are fixed while some may change with the market dynamics. The bank issuing the loan will generally notify you of any such changes.
Repaying the loan is no easy job. There are two modes of repaying the loan. One involves the payment of the interest on the student car loans only in the first few months after which the capital has to be paid. This is called interest only loan. The other method involves the repayment of the total sum in installments along with the interest. Choose the method wisely keeping in mind your financial situation.
Bad credit car loans : Are car loans possible with a student’s poor credit history?
January 26th, 2008
Is your credit history coming in the way of your dream to purchase a brand new car with the help of a loan? Are banks turning you down because your poor credit? This article must give you good respite from the same old excuses for not granting you the car loan to buy your dream vehicle. Bad credit car loans do not consider the history of credit when lending. They, in other words, these institutions which offer bad credit loans consider the people first and go ahead to give them a chance. There have been numerous cases where people have benefited from obtaining bad credit car loans and have also managed to build credit at the same time.
Like in any other loan obtaining procedure, here too it starts with the application process. Before applying, do the necessary homework. As far as money matters are concerned and you are the person with more stakes in the dealing, it is better to be safe than sorry. Read all the terms and conditions of the institution granting the bad credit car loans. Look for hidden meanings. Discuss it thoroughly with a financial counselor if possible. Get all your doubts cleared before you apply for the loan.
Filling the application is child’s play. There are some details that need to be given at the time of application. These may include documents as proof of identity or for the want of proof of address. A driving license of a copy of the passport will suffice. You may have to attach these along with the application form. The application form may be filled online too. Many banks offer this service which is a lot more convenient.
Once the application has been submitted, it is scrutinized by the concerned officials and most of the cases the loan is sanctioned if certain conditions are satisfied. Going through an agent also turns out useful when it comes to obtaining student car loans. These agents are in touch with many lenders in the regions where they operate. Once your application has been filed, depending on the requirements, they will find a suitable lender for you. You would however be dealing with the agent only.
Sometimes when banks turn down your application due to poor credit history, such agents come in useful. There are many agents who operate online too and can be easily contacted. It is however advisable to be a little more careful as chances of being cheated in this case is more. If you are dealing with an agent to obtain your car loan, make sure he is a trusted one and has enough proof to show the same.
The interest rates on bad credit car loans are slightly higher than the normal car loans. Beware of rates fluctuating due to change in economy and make sure that you will have the necessary funds to repay the loan when it is time. Make sure that you are well prepared to repay the loan with the interest because the failure to do may lead to some unpleasant consequences. Do not take a chance.