Best Car Loan

Hunting for the best car loan offer?

There are some issues you should keep in mind. They influence the interest rates and approval decisions.

Secured Loan

Secured loan means that the property you’re acquiring (car in our case) also serves as the collateral. If you fail to make payments or default, the bank has the right to seize your car. People go for secured loans because of their low interest rates despite the fact that the car itself serves as the security.

If you’re applying for secured loans to get a used car, make sure you read all the details of the offer. Sometimes banks do not accept a used car for collateral, as a result you end up paying a high interest rate on your loan.

Loan Term

Many banks offer lower rates for a long term loan period. If you are planning to repay your loan within four to five years, do the price comparison of banks for this precise span of time. This way you can do a correct apples to apples comparison.

Long term loan can be tricky. People get the wrong idea that by extending their loan term, they get to pay a lower interest rate. That is true but that’s not the complete picture. You keep paying interest payments for a very long time and the net effect is, you pay a far bigger amount than the regular one.

Caution: If you are trying to pay off your loan in full when you have made a prior commitment of a longer term loan, you might face fines and charges for eating up the interest payments of your bank. Do contact your bank and ask all details about such consequences beforehand.

Credit Quality

Even though it is not a common practice among lenders, your credit history can influence your loan approval and its rate. You can understand this by thinking about the pool concept of insurance. Individuals who bring more risk to the insurance pool pay their premiums accordingly. More risk means higher premium.

Same case applies in car loans. If you have a great credit history, you will be charged a lower interest rate and vice versa. Some lenders even charge you a low interest rate just because the majority of their customers have a very low probability of default.

Featured Personal Loans

Personal Loan	Details	Min Interest Rate	Min Comparison Rate	Min Loan Amount	Min Loan Terms	Apply Fee
ME Bank Personal Loan	A low rate personal loan from ME Bank with no application fee for a limited time.	13.59%	13.81%	$5000	1 year	$0
Aussie Personal Loan	A smart way to consolidate your bills to save time and money so you can pay for your holiday, a wedding or renovate the house.	13.90%	14.84%	$3000	1 year	$199
Sugar Money Personal Loan	Fixed rate personal loan with flexible options to get you funds when you need it.	13.99%	15.00%	$3000	2 years	$250
bankmecu Personal Loan	A convenient and fast way to purchase a car or debt consolidation with affordable rates and fees.	13.49%	14.55%	$1000	1 year	$150

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