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Advantages of Getting a Car Loan

Have you ever wondered how your best friend was able to afford a new car? You have almost the same monthly salary. Both of you have a family to support. Do you want to know his secret? He got a car loan and is now reaping the benefits. If he can do it, why can’t you?

Nowadays, owning a car has never been as easy. You do not have to empty your savings account to buy one or make drastic changes to your budget and lifestyle. Many car dealership companies and financial institutions now offer car loans that would allow you to drive your new car home following completing all the paper works.

Some people might commit themselves to buy everything in cash for fear of getting neck-high debts. However, there are several advantages to getting a car loan that can help you avoid unnecessary expenses so that you can save.

Access to Show Rooms

When you are planning to buy an automobile through dealership finance or auto loan, you have the pleasure of visiting a showroom and choosing the vehicle that you want. The dealership company would let you test drive several cars to help you make your final choice.

Easy and Quick Processing

Most people that apply to have a vehicle financed can come in the morning and leave in their new car on the same day. Minimum documents are required to approve the deal. As long as you can show that you are capable of paying, getting a car through financing is quite a breeze.

Leave Savings Untouched

One advantage of getting a car loan is not having to use your savings to buy a vehicle. Many people save money for emergencies, their children’s education, a bigger house, and a trip or vacation. Nowadays, many financial institutions offer fast and easy car loans. You can keep your savings and still get a new car for your daily use.

No Need for Collateral

When you buy a car through financing, it serves as collateral for the amount that you borrowed. If ever you miss several months of payment, the financial institution that extended the loan can seize the car. If you still fail to pay, the company can take possession of the vehicle and would have the right to sell it again. It can also forfeit all the payments that you have made. Pay your instalment payments regularly to get the most benefit from a car loan. Neglecting your obligation can make you lose the car and your money.

Come with Several Perks and Bonuses

Car financing companies offer several bonuses along with the vehicle. They could come with free road tax and free servicing for one year or two years, depending on the terms and conditions stated in the contract. You can also drive out of the garage with a full tank, courtesy of the auto financing company. Other car dealership businesses would offer a cash return for prompt payments.

Help Build Good Credit History

Build an impressive credit history by making on-time instalments until you have paid off your car. You shall need an excellent credit record to get approval for a loan application for larger amounts. You can make these big purchases without touching your savings.

Aid in Proper Budgeting

When you have monthly payments to make, you learn the proper allocation of your income. You would learn to control your expenses to allow monthly payments for your auto loan. Setting aside an amount for the instalment payments would help you spend money wisely. Before you know it, you have paid up in full, and you are now the owner of your car.

While paying cash for your dream car is the best way of owning one, you might not have money on hand to pay for it. Your next best choice is getting a car loan. Some people would benefit more from having their means of transport. If you work far from your residence, taking public transportation can take time and might cause you to arrive late for work. Tardiness can give your work performance negative points.

If you are in a profession that requires a lot of traveling, having your vehicle can be a great plus. Some careers would require you always to look your best. Arriving late to an appointment with wrinkled clothes and dusty shoes because you took the bus or train can make you look inadequate for the job. There is always a big difference between driving a shiny new car and alighting from a train or a bus to meet clients.

When a vehicle becomes an essential part of your job or profession, having no cash to buy one is not an impediment. Car dealership companies are always prepared to sell a car on credit to people who honour their commitment and obligation to pay.

The Easiest Way To Get A Loan From Home

Whether it is due to medical reasons or the absence of bank offices in your area, you may not always be able to go to a bank in order to get a loan. Unexpected medical or utility bills that must be paid quickly can make the whole situation considerably more difficult.

Luckily, there are several platforms that allow you to get loans without having to physically go to meetings with bank representatives or wait in endless queues just to submit the documents that are required to borrow money.

Submit all documents digitally

Online money-lending platforms operate entirely over the internet. This means that the entire process of borrowing money, from submitting the required information, to the actual transfer of funds is done using web-based services and software, such as smartphone apps and websites.

In order to get online loans, you will have to digitally send in all of the required personal details and information. This can be done in several ways:

  • Take photos of your physical documents – Most services will allow you to take photos of your documents and submit them like this, however, you must make sure that all information is clear and easy to read;
  • Send digital copies – Certain documents can be sent as PDF files, provided that you have them. These can be bank statements, tenancy agreements issued by your landlord or other types of documents that may exist in digital form;
  • Fill in a form – You will also be required to enter personal and financial details when filling in the loan request form. This can be done using the website of the service or the smartphone app;

Use the app to make things easier

The fact that most money-lending services also offer smartphone apps can make the process of borrowing money extremely easy. The software will ask you for all the needed information and may also be used to access all the details of the transaction, such as fees and taxes that you may be required to pay.

All apps are usually free to download and install and will be compatible with both Android and iOS devices, giving you the ability to easily sync information between multiple phones and tablets. They will also send you notifications when you are due to pay the monthly installments.

Borrow money without worrying about your credit score

It is important to keep in mind that smaller, short-term loans do not require credit score checks. You will be able to submit your request and have it approved in under 24 hours, regardless of how bad your credit score may be. The online service may request that you also submit your credit score, however, it will not be checked and the information will not play a part in determining if you are eligible or not to get a loan.

Most financial information that you provide will only be used for marketing purposes in order to further develop the platform’s services.

Depending on the period that you set for the loan, you may not be required to have a guarantor. However, most companies may ask for one if you want to repay the loan over the course of more than 36 months.

Get loans without having to leave your home

Online services regulated by the UK government, making them just as secure as the ones offered by banks. They are required by law to fully disclose all information related to the taxes and fees that you will have to pay in order to borrow money.

It is also important to note that all the agreements that are made using the smartphone app or the website have the same legal value of the ones that are signed at a bank, ensuring that all transactions are legal. Generally speaking, the main difference between loans given out by banks and the ones from online platforms is that you do not have to leave your home for the latter and that your credit score is never an issue.

Once your loan is approved, you may transfer the money to any bank you choose and use it for any legal purpose. Unlike the services offered by banks, online platforms will not impose restrictions with regards to what you pay for with what you loan.

Conclusion

Overall, using an online money-lending platform offers you, as the name implies, a way to borrow up to 5000 pounds, using only the internet. These services do not require you to go to the bank, wait in a queue to submit ani documents, or pay fees and taxes that are not disclosed beforehand.

The only limitation is the fact that most companies will only allow you to get a single loan at a time, making it important to accurately determine how much money you need when making the request.