The most logical way to get that oh-so-necessary car is to take out a loan. In the case of an auto loan, there are a number of decisions you will need to make before finding a lender and ultimately signing on the dotted line. Most of these decisions relate to the terms of the loan, such as payback period and interest rate. Others have to do with your choice of lender, the amount you choose to put up as a down payment, and how much research you do before moving forward.

Here are 5 tips for financing a car that can help you be smarter about choosing your auto loan:

1. Learn Your FICO Score

The single most important factor that influences how good of an interest rate you qualify for - and even whether you qualify for a loan in the first place - is your FICO (or credit) score. Your score is calculated independently by at least three different major credit-reporting agencies: Equifax, Experian and TransUnion. Each agency uses the same formula to calculate your credit score. However, given that they each have access to slightly different information about you, the scores vary. Make sure to learn all three of your scores.

2. Compare Offers From Multiple Lenders

Many people seeking a car loan make the mistake of just contacting one bank or credit union and going forward with them. This is a mistake because, as with anything else in life, more choices is better than fewer choices. By contacting multiple lenders, you have a much better chance of receiving multiple loan offers at different interest rates. Bottom line: competition among lenders is good for you!

3. Consider Your Local Credit Union Or Bank

Before walking into an auto dealership and asking them for a loan, stop by your local bank or credit union first and talk to their loan officer. Many credit unions, in particular, have set up special auto loan programs for their members. Having a potential loan deal in hand before visiting the dealership is a great confidence builder, and it gives you more leverage when negotiating with the dealer.

4. Do Not Accept The First Offer You Get

When applying for loans from multiple lenders, be careful not to just accept the first offer that you receive. Even if you think you have found the best lender for you, it is likely that their first offer is not their best offer. Remember, their goal is to make money, so they are working with a range of possible deals for you. Be bold and ask if they can do better. What do you have to lose?

5. Buy A Car Within Your Means

This last tip may deserve to be at the top of list: make sure you are buying a new or used car that is within your financial means to afford. It is always tempting to buy a car that you cannot quite afford. However, every $500 or $1,000 you can shave off of the purchase price will mean significant savings for you in terms of monthly payments and overall cost of the loan.

Article Source: http://EzineArticles.com/?expert=Marie-Claire_Smith

Tags: Auto

     Auto title loans are a handy option when you have expenses to meet and you’re short on cash. In this type of loan, a lender will lend you money using your vehicle as collateral. The best part of auto title loans is that you can continue using your car during the loan period, i.e. while you are still paying off the loan.

     Auto title loans are available to anyone who owns a car or other type of vehicle. The kind of loan you can get will depend on the type of ownership you enjoy over your vehicle. These are the different loan options available:

     Option 1: You own the vehicle fully
     For a person with a clear title on a vehicle, getting auto title loans is a breeze. You can simply walk into a loan agency and walk out 30 minutes or so later with the loan amount in hand. In fact, with no loans pending against your vehicle, even your local bank may be willing to lend you the money.

     Option 2: You haven’t paid off the existing loan on your vehicle
     If you own a vehicle but haven’t paid off the existing loan on it, do not worry. You are still eligible for an auto title loan. In such a situation, your lender will simply refinance the loan for you.

     Refinancing means that the new lender will buy out the remaining balance on your loan and then give you the additional money you require. For payback, both loans are clubbed together so you don’t have to deal with the hassle of making payments to different people and keeping track of them. Read the rest of this entry »

Tags: Auto