subject: Beware Of Car Loan Traps [print this page] With the popularity of internet as a source for car loan, getting a loan approved has become much easy but several hazards are also being noticed. The cases of frauds and traps are increasing everyday and many buyers are falling prey to such frauds. There are hundreds of companies offering car loans to buyers at terms and conditions which are just too convenient and seem to be tailor-made for them the result is that buyers are getting trapped in such lucrative offers.
If you are also taking help of online sources to get your car loan you have to be careful and alert always. Here are a few things which you should always be careful about.
Loan amount:
Make a budget! When you start looking for car loans or used car loans you should have a budget in mind. You should be sure about how much you would like to borrow and try to stick to it under all conditions. Banks and financial associations wish to make money and will always try out tricks so that you are lured to maximise your borrowing. They want to squeeze as much as they can. Thus, you should have a strong mind and never move beyond your budget no matter how much lucrative the terms of offer seem to be. Thus, before approaching car loan companies and organizations do your research well.
Bad credit car loan borrowers:
If you have a bad credit in your history you need to be extra careful because everyone will be trying to lure you. Getting car loan approved might be a bit difficult when you have a bad credit but this does not mean, you will have to agree at sky rocketing rates of interests. We all know that bad credit car loans carry high rates of interest, but they shouldn't be too absurd. In order to escape such a situation and ensuring that you are not being duped you need to do a little research before looking for bad credit car loans. Find out what about the interest charged by most companies from borrowers who have a bad credit history this way when someone approaches you with an interest rate which seems to be too high, you will at least know that you are being cheated or not.
Loan calculations:
You should do all loan calculations yourself when you are planning to borrow money. If you find calculations confusing and complex take help of a car loan calculator or any other online tool which shall help you with the figures. Do not let anyone else do calculations for you remember this is a financial decision and you cannot trust anyone.
Loan terms and conditions:
When you have finally decided and chosen your car loan company, your last task is to sign car loan agreement. Do not rush in this crucial process. Slowly read all the terms and conditions of the loan and understand them fully. If you find any clause unacceptable, talk about it straight and if possible get it changed. Never sign car loan agreements if you have some doubts in mind.
