I need a car to be able to get the kids to school and get a new job. I've just divorced my husband, and while I get some money each week, it's hard to save enough for a car out of that. I need to get a used car and a car loan to get us on our feet and start our new life. I don't really mind what a car looks like as long as it runs well. This blog is about getting loans for getting on with the rest of your life after a divorce and has tips for newly single mums.
Cars have become a necessity for most people today. One of the challenges you will face when buying your first car is saving up enough cash to buy the asset. In most cases, you will have other obligations that could prevent you from making sufficient savings. Well, taking a car loan is a viable solution for most people. The primary benefit of a car loan is that it enables you to own a vehicle and pay for it later. The extract below details some valuable tips to guide you when getting your first car loan.
Increase Your Credit Limit
Most lenders will expect you to have an excellent credit score. Check your credit score before applying for the loan. If you have a low credit score, the lender may be compelled to impose a high interest since they presume that you might default on the loan. The best way to increase your credit limit is by repaying old debts, taking and paying off small debts.
Consider a Higher Deposit
When taking your car loan, provide as much deposit as you can. A higher deposit means lower monthly instalments and a shorter repayment period. Therefore, you will pay less interest on the loan. In some cases, the lender will remove some of the extra charges if you have a good deposit.
Be Cautious When Choosing a Car
Your preferred car should meet the following eligibility criteria:
Choosing a Lender
Your preferred lender should have an excellent reputation from current clients. Additionally, examine the interest rates and extra costs such as the loan processing and valuation fees. Assess the terms of the loan. For example, check whether you will incur penalties for defaulted payments. Ask the lender to provide you with the loan repayment schedule. Ideally, the monthly repayments must be reasonable. Otherwise, you may have a difficult time repaying your loan. Besides, inquire if they allow you to restructure the facility. It enables you to adjust the repayment period and lower the interest rates.
When taking a car loan, increase your credit score, consider a higher deposit, be cautious when choosing a car and work with reputable lenders.
Share21 October 2021
