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Advice For Securing A Loan by Peter Trenton http://www.loansoffer.com The tips below are sound advice when looking to secure a loan for, say, the purchase of a car. Most of the loans that are taken out are for car purchases and you should always remember that it is your responsibility to pay off any existing loan when you embark on a new one. Some unscrupulous dealers will promise to pay off the loan and then fail to do so and you can find yourself in real trouble with your bank and the old loan company. Make sure that you have it in writing that the dealer will pay off the loan within ten days if you leave it up to them. If there are any manufacturer deals or rebates on offer, they are often very beneficial but watch the long term interest rates. Very often they shoot up after the 'honeymoon' period but if you're on the ball you can benefit from the initial offer and then transfer the loan to a company that offers a lower rate. If you're concerned you can discover your credit rating yourself and then you will know if you're eligible for the best rates of interest (only about 7% of the population are often able to claim the advertised rates that some companies advertise. There are always companies who will take you on, but beware of the interest rate; sometimes it can be exorbitant and you must weigh up the need for the car (or whatever). Some dealers try to insist that you fill in a credit application form even if you're paying cash. They will quote the Patriot Act and try to intimidate you into giving them a lot of personal information and this is what they're after because they can sell it on to other companies. Don't become so emotionally attached to whatever you are wanting to buy that you feel you can't walk away. It's almost always a buyer's market. Be prepared. Have figures of new models and comparable deals that you've seen in magazines and papers. You need to be happy that you're getting a good deal and you will be in a stronger position to negotiate if you have your loan in place before you go in to buy the car. If, however, you decide to use the loan arranged by the dealer and you need to wait a few days to hear if you've been successful, then don't be tempted to pay the deposit with cash as the dealer won't always be too happy to refund this if for any reason you are turned down. Lastly, always look at the length of the loan. A dealer's repayments may look more attractive than, say, a bank, but they might be for a period of seventy two, rather than thirty six months, meaning that you would be paying almost twice as much overall. |