Posts Tagged ‘Car Loan’

Bank of America Car Loan- Factors affecting the Loan and its Benefits

When you finally understand the working of auto loans, you would realize that the monthly payment also covers many costs over the cost of your car. In addition, paying lower amount in monthly installments does not mean that you are saving money. More than 80% of new cars and 50% of used cars are financed in the modern market for a period of three to six years. If you are planning to buy an auto loan, you can consider taking it from Bank of America, which also facilitates the Bank of America login for its customers. The three factors mentioned below affect the monthly installments and the overall amount of your loan.

The amount of loan: This is the total amount you borrow regardless of cost of the car. It means that you may choose to buy the add-ons and accessories. Depending on how much you like to spend, this amount may be less or more than the worth of your car.

The APR or Annual Percentage Rate: The APR is the effective rate of interest you are required to pay for the auto loan.

The term of loan: This is the term for which you procure the auto loan, which varies between 36- 72 months. If you choose to pay off your loan in less number of months, you may save some money. On the other hand, a longer term of loan may require you to pay more money than your car is worth.


Benefits of taking a Car loan from the Bank of America

Taking a car loan from the Bank of America offers a lot of benefits such as:

  • If you have an excellent credit history, you can take the car loan at a rate of interest as low as 2.64%.
  • The car loan is available for periods ranging between 12-60 months.
  • In some cases, the bank approves your car loan in just 60 seconds.
  • The amount of loan is funded in just 24 hours if you have urgency.
  • The bank finances lease buyouts and private party sales.
  • Origination fee is not there with the Bank of America.
  • If you plan to prepay your loan due to any reason, you do not have to pay any prepayment penalty.
  • The bank gives you a discount of 0.50% APR if you enroll in the Preferred Rewards.
  • The Bank of America gives you 15% discount if you have a checking account with the bank.

Shopping for your dream car may become a tough experience if you do not know how car loans work. With innumerable choices of models, makes, colors, and loan providers, you may take the help of Bank of America to zero in on any one of them.

How to Simplify the Search for a Car Loan

Car LoanIf your financial situation indicates that you’ll not be able to buy the car you desire without the help of a loan, there are several steps you can take to make the search for a car loan hassle-free. You’ll need to know which people or institutions to communicate with, how your credit rating influences the exercise and what to do if you have a poor credit rating.

Where to look

Perhaps the first thing you need to figure out is where to go for your loan. Here, you have a number of options and for most people the first stop will be their bank.

If you are an old customer and have a good credit rating, getting financing from your bank is a no brainer. Even when your credit rating is not perfect, your familiarity with the credit officers in your bank might work in your favor.

Insurance companies could also help you obtain a car loan and again, it is always advisable to seek help from your insurers as they have reasonable knowledge of your finances and driving record.

If banks and insurance companies fail to give you the assistance you need, a quick online search will show you that there are many finance companies that offer car loans. While a good number of these lenders are to be treated with care, there are many reputable and well-established lenders and a careful search will never be in vain.

Credit rating and car loans

Your credit rating has an influence on not only your ability to get a loan, but also on the amount you can qualify for and the interest rate charged. If your credit rating is poor, some lenders will offer you a loan but at a very high interest rates. However, you can overcome this hurdle by setting aside some money for a substantial down payment.

Even with a less-than-perfect credit score, some lenders can be lenient if they discover that you have a reliable source of income. For this reason, when making your application, provide all the evidence you have to show that you are respectfully employed despite the history of late payments or repossessions that may have contributed to your poor credit score.

Even with a poor credit score, your chances of getting auto loans will improve immensely if you provide collateral for the loan. A secured loan is not only easier to get but also comes with lower interest rate charges.