Time to Drive Credit-Free: 7 Types of Easy Loans for Cars
Are you looking to apply for a car loan?
No matter what the situation is, it’s important that you get yourself a car. You can use it for emergency situations like taking someone you know to the hospital in the dead of night. While public transportation is reliable, you can’t count on them arriving in time for certain emergencies.
If you’re looking to be a part of the 88% of people who own a car, the best way to do so is by looking for easy loans for cars. You’ll find a lot of options available for you by doing so.
To learn the best types of loans available, check out what’s below. We’ll detail the different loans that you can apply for. There are even options for you to go for even with bad or low credit scores.
1. Secured Loans
This is the best option you can go for if you’re confident in your ability to fulfill each payment they come. These loans are the most common option you’ll find presented to you by the lenders. This is because it’s the safest option for them when it comes to car loans in general.
With this option, lenders can opt to seize the car at any time if you’ve fallen behind on payments. What’s great is that these often have lower interest rates compared to other loans. This makes it a great choice for you if you’re looking to save money in the long run.
Once you’ve paid off the loan, you then claim the vehicle as your property. Interest rates aren’t fixed, though. There are some factors that can still increase the rates, like the make and model of a car.
Your credit score also affects the interest rate placed on the car. The lower your credit score is, the higher the rates will be. This is why it’s important to improve your credit score before making any big purchase.
2. Unsecured Loans
Compared to secured loans, unsecured ones aren’t liable to get repossessed if you miss a payment. This is a great option for you if you find your income isn’t as stable as you want it to be. This is why it’s a great option for people working commission-based jobs.
However, because of this, they tend to have higher interest rates than other loans. This is to encourage you to meet payments on time whenever you can.
This is also often used in a local setting. This is so the lenders can approach the borrowers much more easily to ask for updates about the payment. Expect this option to pop out a lot the next time you search for “quality used cars near me” on the Internet.
3. Simple Interest Loans
Simple interest loans are a unique type of loan in that the way they accrue interest. While it’s periodic like any other loan, simple interest loans are much more flexible and diverse. Lenders have the option of increasing or lowering the interest rates as they see fit.
Often, they go for lowered interest rates to attract more buyers. However, they can set it to increase the outstanding balance every day instead of every month. Despite this, monthly payments are still the only way for you to pay it off.
What’s great is that you have the option to pay off more than you need to when you can. This will lower the outstanding bill, lowering the total interest rate of the car.
It’s a great option to go for if you’re expecting to have an increase in cash flow soon. This can cause you to pay far less than you expected to pay in the first place.
4. Pre-Computed Interest Loans
Pre-computed interest loans are a great option for those who look to make fixed monthly payments. When applying for this loan, the interest for the term will get calculated on the spot.
Once that’s done, you’re presented with the total and are then shown a plan for when you should make each payment. All you have to do now is meet each payment on the dot.
Since the total was already computer beforehand, making advanced payments here won’t affect it. You’ll only be reducing the total of the next payment. It’s a great option if you’re looking at a limited budget with each payment.
5. In-House Financing
If you’re having trouble securing a loan, you always have the option to opt for in-house financing. This is when the dealer supplies the car and the loan for you. You’ll see this loan type in local dealerships, yet again, for flexibility for both borrowers and lenders.
If you’re exploring a local car dealer in Janesville, for example, they’ll give you this option first. It’s profitable for them since they can set the interest rates as they please.
What’s great about these loans is they apply to people with bad credit scores. This is great for those who want to improve their scores through high-value payments.
6. Direct Financing
Direct financing is among the easiest loans you can apply for to get quality cars for sale. These are loans provided by banks and other trusted financing options. Because of the nature of these loans, it’s easier for you to find the best loan deal in any dealership.
These loans mean that you have a good credit score and a reliable source of income. You won’t have trouble securing a good car with this type of loan.
7. Lease Buyout Loan
This is a great option for those who want to keep their cars by the end of their lease terms. In this loan, the lender pays a buyout fee upfront. You then make fixed payments over a set term to pay it off.
Once the payments are complete, the lender lifts the lien, and you have ownership over the vehicle. This is a great way to pay for a vehicle if you have little car credit to go around.
Check Out These Easy Loans For Cars
With these loans, you’re guaranteed to find yourself a suitable car no matter what. Look for the ideal loan to apply for and get the best car for yourself today!
Part of being successful in applying for your chosen loan is looking for the right dealership. Contact us here, and we’ll help you find a suitable car for your budget! We also accept auto credit in Janesville if you’re looking for a good option for the area.