What to Watch Out For When Getting a Car Loan

Everyone needs transportation of some sort. Although the need is basic, the solutions to the need may vary from person to person.

Once it is determined that you need a personal vehicle, there are a number of factors that are vital for you to consider. Generally, when someone shops for a car, they are also shopping for a car loan. So before you even go out to shop, make a list of questions for yourself. Be honest and don’t allow yourself to be distracted by the idea of a shiny paint job and a big powerful engine until you have answered questions such as:

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What is your income each month? What are your housing costs? What are your other living expenses? Do you have some form of reliable transportation now? Why do you want a new vehicle? Do you need one? Based upon your budget answers, how much can you easily afford to pay monthly for a vehicle? Do you have a down payment saved up? How about a trade-in? Is your identity wrapped up in having a certain type of car or truck? If so, why?

Each of the answers to these questions will help you determine how much you can afford to spend on a car, if you need a loan, and if so, how much you need to take a loan out for. Once you’ve figured out your financial situation, it’s time to shop.

Bear in mind, when you go out to shop for the dream vehicle, car dealers are often fast talkers who are generally very good at telling you what you want to hear, so it’s important to go in with a clear head. There are a number of factors to keep in mind when you go out shopping for that new or pre-owned car, including:

– If you need to finance it, determine what the interest rate will be. Make sure it is not variable, and inquire about penalties for late or missed payments.

– If the lender makes special accommodations for deployed military personnel in war zones, and note any guarantees against repossession, should you be unable to send payments for an undetermined period of time.

– Always get all of their promises and assurances in writing, signed and notarized. They will have a notary public on their staff.

– Only sign if you are comfortable with all of their answers, the rates, the size of the monthly payments, and the condition of the vehicle itself.

Generally, lenders and dealers will act high and mighty, as though they are doing you a favor by making unreasonable accommodations just for you — They are not. Remember this: You are the one in power. All you have to do is get up and walk away, and they cannot stop you. There are many ways to obtain transportation, so don’t feel pressured to grab the first deal offered to you.

Requirements for Military Service in the U,S

In order to serve in the U.S. military, the candidate needs to possess the minimum qualifications of the five services. He or she has to be a U.S. citizen or a permanent resident alien, and at least 17 years old, with parental consent, or 18 years old without parental consent. A high school diploma and passing the physical, medical examination are the other things required to be accepted to any service.

Each branch has other specific requirements to be eligible for the military service. To join the Army, the candidate has to be between 17 to 34 years old, and he or she should have passed the Armed Services Vocational Aptitude (ASVAB) test with a minimum score of 31. The number of his or her dependents must not exceed two.

The Air Force, on the other hand, requires the candidate to be between 17 to 27 years old, with no more than two dependents. He or she should have passed the ASVAB test with a minimum score of 50.

To join the Navy, the candidate must be between 17 to 34 years old and should have passed the ASVAB test with a minimum score of 50. Except on the submarines or in the Navy Seals, women can join the rest of the occupational fields.

The candidate must be between 17 to 39 years old in order to join the Coast Guard. He or she should be willing to serve on or around the water, and the number of his or her dependents must not exceed two. The candidate should have also passed the ASVAB test with a minimum score of 45.

To enlist in the Marines, the candidate must be between 17 to 29 years old and should have passed the ASVAB test with a minimum score of 32. He or she should meet its mental, physical, and moral standards. Except in combat arms sections, such as amphibian tractor, tank and infantry, women can join the rest of the occupational fields.

How Can Companies Afford To Give Poor Credit Loans?

After the credit crunch, many banks and loan brokers have become stricter on the requirements of loans; many people found themselves in a situation where they were declined credit. Still, some companies are providing loans for any type of credit history, to help these people get back on track. While this seems to be a risky business, it is important to note that the companies are able to ensure that debtors pay the money back, so they continue to provide bad credit finance.

The availability of poor credit loans has increased after the financial crisis, as the demand increased as well. Many people were unable to get extra money for a car, home improvement, and emergency expenses. These loans are not approved the same way as bank finance, but there are still some important requirements to consider. In case you are wondering how these companies are able to afford giving out loans to people with bad credit, you have to look at the assessment criteria and the interest rates.

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Many financial experts say that the risk of bad credit loans is built into the interest rate. This means that people with poor credit history will get a higher interest offer. As they would need the money, and could not get it any other way, they often pay double the amount back. Some companies, however, are able to reduce the interest for customers who have a regular income and are trying to build up their credit rating. Secured, bad credit finance is there for those who would like to get approved for a higher amount of finance, but do not want to pay a high interest. In this case, companies ask for some security: a home, a car, or maybe valuable jewelry to back up the loan.

Poor credit financing is widely available today for those who own a car. Using the auto itself to serve as security will reduce the risk for the company, and they, in turn, will reduce the interest rate for long term loans. This way, customers who are sure to pay back the money can benefit from cheaper financing.

Armed Forces Loans Can Be A Lifesaver

Military personnel risk their lives for the country’s freedom on a daily basis, so shouldn’t something as simple as a car loan prove to be as easy and straightforward as possible for them? Service members can face multiple denials, or unfairly high interest rates, due to credit or base reassignments. Luckily, armed forces loans are available to help servicemen and women obtain an auto loan when other options have failed them; oftentimes there is even a loan guarantee. These loans are meant and provided only for military personnel and their families, as they provide terms and services specifically tailored to military life, with provisions to assist with common difficulties and obstacles, such as deployments or transfers.

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The primary benefit is a low interest rate that’s unavailable with many other retailers. Due to the viewed stability of a military service member’s career and income, the lender takes on less risk, and therefore can offer a better deal. This results in an easier payment, as well as savings. Often, these lenders will also provide flexible payment schedules or loan payoff possibilities. Delayed and missed payments could have a low, or even no, penalty. By offering adaptable terms, borrowers can make adjustments for deployments or other roadblocks they may face due to the nature of their employment.

Less than stellar credit score? It’s not an issue. Military auto financing works with a lower credit score benchmark than traditional automotive loan offers. Military personnel are subject to frequent moves that can affect their ability to achieve the longevity required for developing credit, but these loans make provisions for such situations, which means approval, despite a lower credit score, without the penalties.

In order to qualify for this special type of financing, the borrower must be able to present a proof of active service in the military, income verification, proper photo identification, and a social security number. Applicants can expect to have a credit check done whether they’re applying online or in person.

What’s Different About Military Auto Loans?

Military auto loans are made available to members from every branch of the military. Whether you serve in the Army, Navy, Air Force, Marines, Coast Guard, or the Reserves, they can help. Auto loans with low interest rates are hard to get, even with the best of credit, and if your credit is not where it needs to be, you can expect to pay double or even triple. However, unlike regular car loan companies, military auto loans don’t look too closely at your credit score.

 

Many military personnel don’t know that reasonable auto loans and financing are possible with no credit, bad credit, or limited credit. Millions of men and women serve our country, and this is some lenders’ way of saying “thank you.” Military loans are designed to assist military members with getting decent car loans, and in turn, getting the vehicle they deserve.

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There are many advantages to getting military loans — Military personnel can avoid paying high interest rates that most auto loans impose. Most loan companies look at your credit score and decide how much of a down payment, interest, and monthly payments you need, just to prove you are worthy of a loan. When it comes to military auto loans, providing lenders don’t make military applicants jump through hoops, or criticize them for trying to improve your credit; they understand that military life can be difficult, and provides different circumstances than most.

 

The goal of military auto loans is to offer applicants the best deal on auto loans, and to help them get their credit back on track. If you are active duty, retired, a veteran, or are married or related to a current or former military member, you qualify for a military auto loan. They also have a high approval rating, with the majority of loans accepting all credit types, and approval is instant, helping make the lives of military personnel and their families a little easier.