Many of us are aware about how home equity loans work. However, people have yet to discover more about auto loans and their benefits. If you live in San Jose, Ca and are looking for an auto lending facility, then you be happy to know that you can easily get a loan for the value of the equity of your vehicle. This means you can obtain fast and easy cash to take care of expenses such as home improvements or personal expenses. Here are common myths about auto lending debunked:
Auto Loans Have Gouging Interest Rates
Are you guilty of confusing an auto loan with a payday loan? Since both involve lending fast and easy cash, it is natural to assume that an auto loan offers the same excessively high interest rates that payday loans offer to consumers. The fact is that auto lending is popular because it does not charge you an exorbitant amount of interest. As these loans are secured by the worth of your vehicle, they do not trap you in a vicious cycle of paying a huge sum in interests on even the smallest of loans. The borrower gets the money he needs and pays it off in an affordable manner.
All Auto Loans include Prepayment Penalties
This may be true for some lending facilities. However, a large percentage of these loans do not penalize borrowers if they pay before time. Borrowers can also pay off a bit extra with each installment or pay it all off with a huge sum. Make sure you inquire the lending service about any penalties before you receive the loan if you plan to pay back soon.
You will have to lose your Car
This is another common misconception regarding auto loans. What you should know is that you are handing over of your vehicle and not the car itself. No lending service will ask you to give away your car to get money against it. This makes perfect sense since the company that is lending you money wants you to repay the loan without getting involved with the seizing and selling your vehicle.
You Need Good Credit to Qualify
This myth is probably created by other financial lending services that do to not consumers benefit from auto loans. Unlike other conventional loans where you need to possess a good credit score to qualify, auto lending allows you to receive fast cash regardless of what your credit history shows.
In many cases, the lenders do not ask any questions about your credit since the loan is secured by the collateral in your car. Individuals are approved for the sum equal to the equity in the vehicle. However, if you become a defaulter your past credit score will not save you and the lending service will seize your vehicle. Thanks to the flexible terms of auto lending loans, this is rare to happen.
Auto Loan Companies are Unfair
One of the many myths about auto lending loans is that they discriminate among consumers. In reality, the only factor that decides the amount of money you can receive involves nothing but the value and condition of your vehicle. Make sure you do your research before partnering with a reputable company. Learn more at https://auto-loan-finance.wixsite.com/carloans/post/best-time-of-year-to-shop-for-a-car
You can easily find an auto loan company that boasts a proud record of helping customers, in the past. A legitimate company in San Jose, Ca will make sure that you get the most flexible terms and receive the best of treatment; whether you are unemployed, disabled or in debt.
