Danger Spots When Getting Car Finance

28 Feb

Car financing may seem the go-to option if you want to own a car but do not have enough money to pay the cash up front. However, there are certain traps along the road that you need to look out for, even before getting into that car of yours.

Do Not Invest in a Long Term Deal

Dealers often trick their customers into getting a car finance scheme extended over a long period of time, as they claim it will help us with lower monthly payments and hence better handling of the budget. But this is so not true. With a long term deal, you not only end up paying more in the interest but you also have to cover more in maintenance as your car gets older. Furthermore by the time you are done with your payments, the brand value of your car may have dropped, leaving you with a deal that resulted in a loss.

Deals for the Sub-Prime

People having a credit score below 660, often tend to be fooled by dealers who promise a car financing scheme that won’t be based on their credit ratings and thus helping them to get a car even with an average credit score. The thing to look out for in these deals is the large down payment they may require and revolve around interest rates that could be too high to afford, leaving you in a mess over the course of the deal.

The Cost of Extras

When you approach a dealer for car finance option, they offer you extras like tinted windows and rust maintenance. Getting everything under one roof seems convenient and you end up subscribing for these extras. Usually the cost accrued over these extras is “significantly” higher than what you would get at some other place. So always research your neighbourhood before committing to these extra charges.

The Roll-Over Policy

People like to switch their cars frequently and car finance dealers exploit this. By offering a car update over the previous one, even before the deal is paid off, they end up tricking customers into rolling over their remaining payments onto the new deal. This ends up increasing the cost that the customer initially had to pay.


Sometimes the dealer would package more than one deal into a single deal, telling you that through distribution you would be able to save on your monthly payments. But the reality is far from it. Packaging the financing deal of a person having a bad credit along with someone who has good credit ratings, help dealers to secure the deal and earn some commission for themselves. The person with higher credit ratings end up paying higher interest.

Removal from Blacklist

Dealers often tell you that you are enlisted in a credit blacklist and then offer help by having to pay you extra charges. Some of the people falls prey to this technique without knowing that there is no such thing as a credit blacklist.

There are plenty of traps and danger spots that lie in your wait when you try for a car financing scheme. You may not be the smartest of all to avoid them, but educating yourself and questioning thoroughly what you are in for, you can surely avoid these danger spots.…

Remembering vital points when Applying for First Payday Loans

26 Oct

consumer-loansMoney is an important aspect of human life. Though there is a saying that the best things in life are for free, things in the modern world are fast changing. People need money for everything, be it education, food, clothing, entertainment or medical facilities. It is important to have a good amount of cash in the savings account to meet the uncalled for expenses. Life is very uncertain and no one knows when danger might show its ugly face. Things must not stop for the dearth of money. This loan has gradually become an integral part for the USA citizen in respect of Finance.

But what if you suddenly find yourself out of cash in the hour of need? The answer is simple. Just apply for first payday loans and get the amount that will help you to recover.quick-10-second-loan-630-x389_20150923211620_pf

Payday is a short term loan that will provide you with the needed amount. There is a certain rate of interest that you must pay in addition to the original amount, which you have borrowed. There are different time slabs too, within which one needs to pay back the entire amount. The main aspect is that you need to pay the stipulated fee only when the payday arrives.

The first thing that strikes a person, before applying for a loan is the credit score. Many banks decline from providing loans to people who have bad credit score. Applying for first payday loans is the only way out for people like that. The money lenders will not judge you on this parameter. When you make the refund of the borrowed amount, on the payday, your credit score will develop.

unsecured-personal-loansBanks require a lot of documentation while sanctioning a loan. This can be a cause of worry for many who do not have authentic documentation. In the case of payday loans, you will not need to produce many documents. All that the money lender needs to know whether you have a job under the government, and you get a fixed salary, on a specific day.

Banks and other financial institutes will take a significant amount of time for processing the unsecured loan application. This is because they need to verify the documents, which the applicant has provided them with. With this loan, the applicant will not have to wait for long in order to receive the cash. Due to the lack of detailed documentation, the request can be passed within a few hours.absa-loans-loan-banking-financing

If you are incapable of going to the banks or other money lending institutes then fear not. With the advent of money lenders, who offer their services online, one can get hold of the loan from the comfort of their living rooms. Payday loans have come as a boon for many. It is easy to get and offers lot of conveniences as well. So, next time, apply for this loan, when you are in dire need of money.