Car Loan Pre Approval Enables One To Save Money In The Long Run
Car loan interest rates for blank check auto financing differ for people with good and bad credit. An individual with good credit history will be offered low interest car loans whereas one with poor credit or no credit will be offered high interest car loan rates. Car loan pre approval assures the lender that you are serious about purchasing a car and so the lender usually tries and approves the loan as soon as possible keeping in mind factors like ones credit rating, source of income, proof of income and residency and other parameters.
Blank Check Auto Financing:
Blank check auto financing is done to avail pre approved loan from banks or lenders prior to purchasing a car. In this type of loan the bank or lender pre approves a specific loan amount based on ones credit history and few other factors and then provides a blank check to the car buyer with which the car can be purchased from the dealer. Blank check auto financing is advantageous for everyone because of its benefits which are:
* When an individual applies for pre approved car loans chances of securing low interest car loan suiting your financial and credit situation becomes easier. Car loan interest rates on this type of loan will be lower and a pre approved amount will help you in bargaining a better deal on your car with the dealership.
* Blank check auto financing will enable you to try your hand at availing an even better and more attractive deal on your car.
* Since you have already pre qualified for fixed rate auto financing you can formulate a monthly payment plan in advance.
* There is no doubt that to secure low interest car loans one has to qualify for blank check auto loans. When a car buyer approaches a dealer he already has an approved check with him which means he need not go through the process of applying for a loan and other hassles involved with it. All he needs to do is select the car as per the budget pre approved by the lenders and secure the loan to purchase the car.
Auto Loans For No Credit:
Auto loans for no credit is provided to people who haven't got a chance to build on their credit rating and are suffering from no credit history or individuals who have a poor credit rating due to late payments or default in payments or any other reason affecting the loan repayment schedule. People with no credit history need to gather and prepare documents which will prove that he is capable of paying back the auto loan secured from lenders providing auto loans for no credit. Proof of employment and proof of residency are the other documents necessary to apply for auto loans for no credit. However, the car loan interest rates on auto loans for no credit or poor credit is higher as compared to low interest car loans provided to people with good credit rating.
Source: Free Articles from ArticlesFactory.com
ABOUT THE AUTHOR
Shelin Michel is a regular writer on AutoDriver.com, a US based portal, which provides detailed information on blank check financing from subprime car loans lenders, Auto Loans for No Credit and other car loan related issues.