Search for cash? Top car loan companies for bad credit are here
April 16, 2020
Car loan companies: we can help you get money
Very few consumers can pay for their new car in cash. Fewer and fewer consumers can put their salary aside and save. More than half of buyers, therefore, choose to take out a loan from car loan companies.
New cars or good used cars, in particular, have their price. Car buyers have to calculate with a five-digit amount that not everyone can pay from the current budget. The car buyer can now take out a car loan from the dealer or choose a bank. The customer has several advantages for this. Of course, the loan from the dealer is easy and convenient, but it is often not as cheap as taking out a car loan online. The so-called free loans bring many advantages that the trader cannot offer.
In the meantime, customers not only find their house bank but also contact the many direct banks on the Internet. When taking out a car loan online, the buyer can save a lot with a loan comparison. He enters the purchase price or the loan amount in the field provided and the term. It is often worthwhile to enter an installment that may have to be paid. With one click, the buyer receives all low-priced providers with their cutting-edge offers.
The buyer can not only see the conditions but also see the conditions that the individual banks offer. Ultimately, the buyer only has to decide to take out a cheap car loan online. The loan application can also be made directly via the comparison. Based on the data entered, the buyer will receive a preliminary loan approval after a very short time.
However, the bank then needs the creditworthiness documents, which consist of salary statements from the past three months and bank statements from the same period and a copy of the employment contract. At Swiss Post, the buyer carries out the Harrison procedure, which must be carried out on the basis of the identity card in order to identify himself. With this form and the creditworthiness documents, they are sent to the lending bank.
What to do if your credit rating is bad?
If the credit rating is not so good and the income is insufficient, a second borrower or a guarantor could increase the credit chances. If the buyer already knows this, he could include this collateral with the loan application. Real estate or other valuable property security is also recognized by the banks as security. However, the customer should know whether he can also pay a loan. To find out, he can draw up an income/expenditure plan.
He compares his income to expenditure and then sees whether there is financial scope for payment in installments. As already mentioned above, a long term should then be chosen to make the rates affordable.
Car loan approval
With the loan approval for the car loan online, it takes about 5-6 working days until the buyer has his money in the account. However, like all other banks, these banks require a good credit rating. This consists of a sufficiently high income, which should be above the garnishment-free limit and shows a tarnishable share. The buyer must have a permanent job, the employment contract must not be limited in time and not be given a trial period.
The bank will query the Credit Bureau for the car loan online, which should be clean. If there are serious features such as loan cancellations, disclosure oaths, bankruptcies in the Credit Bureau, the loan is rejected. However, if there is only a minimal entry because an invoice has been forgotten and has already been reminded, it can happen that the loan is rejected due to the automated verification process that many banks use.
The customer should then contact the bank by phone and try to explain the entry credibly. The bank will then check again and approve the car loan online if necessary. However, the loan approval will then take longer because the loan application will then be checked by an employee.
Car loan installment
If the customer now takes out an installment loan like a car loan, this loan will not be earmarked. The customer then does not have to deposit the vehicle letter as security with the bank. However, if a special car loan is taken out, the bank requests the vehicle registration document as security. For the buyer, this means that he cannot sell the car during the credit period without informing the bank about it. Since the bank is practically co-owner of the car, a sale must be registered.
If you want to take out the car loan online, you have the advantage of the cash payer over the dealer. under certain circumstances, he can negotiate discounts or discounts. This can often save several thousand euros. In addition, the buyer can freely decide which provider to use. Unlike the dealer who only has one offer.
The installment loan is paid in constant installments every month. The customer thus has the necessary transparency for his financial projects. As far as the interest rate is concerned, it is very different from provider to provider. Not all customers always get the stated interest rate, since the interest is calculated depending on the creditworthiness. If you have a good credit rating, you also get good interest, the rules of the banks are that simple.
In addition, the focus should not only be on the interest rate, but also on special repayments and installments. Employees in particular often receive bonuses or special payments from the employer each year that could be used in the loan. The advantage of the loan being paid off faster. But that is not always possible if no free special payments have been agreed, the bank can calculate a prepayment penalty due to the loss of interest.
For the future car loan online, the customer should definitely include these special agreements in the loan agreement. One or two installments are not to be dismissed from the house. Financial bottlenecks can occur over the course of the credit period, which could compensate for deferrals.
It is also important to know that the longer the term of the loan, the cheaper or lower the rates. The shorter the term, the higher the rates. If you have a good income and can pay high installments, you should do this because the loan will then be paid faster.