If you don't have a very good credit score, but you need to get a car as quickly as possible, you may be thinking about same day car loans. However, there are a lot of drawbacks to getting a same day car loan. This article will go over the disadvantages of getting a same day car loan.
Same day loan companies make their loans look very good by advertising to people with poor credit scores and no savings. A borrower in this category may be tempted to get one of these loans because they don't look at your credit rating and can get you in a car the same day. This might seem like a miracle to these borrowers, but they need to be very careful when using these loans.
There are several reasons that same day car loans should be avoided if at all possible. The biggest reason is that the lenders that deal in same day car loans aren't usually very reputable. When dealing with a lender like this, it's very important to make sure that you know every detail of the loan before accepting it. These same day car lenders often put clauses in the loans that create a lot more expense for the borrower than what the borrower thought they were paying.
Not only are the interest rates extremely high, but so are the payments. These loans tend be very short term periods which makes the payments high, and the borrower will probably end up paying more than what the car is worth due to the high interest.
Another thing to consider is that these loans are often very small. A borrower would be limited to buying only the cheapest of vehicles. Many times these vehicles break down before the loan is even paid off. At this point the borrower will have to take out another loan for a replacement car, while they are still paying on the previous car. You would never be able to finance a newer car with one of these loans.
If you've decided to take a risk on one of these loans anyway, make sure that you are very careful in the application process. Getting your credit report and all your paper work together before hand will make things easier. It's also important to shop around, especially for a same day car loan. Since these lenders are not necessarily the most honest and forthright lenders, you'll need to be diligent in comparing rates and getting info on the lenders reputation, and making sure you understand all the terms of the loan.
You'll need to find out who offers the same day car loans; many dealerships offer them and you can also look online for same day car lenders. Once you've started the application process don't stop at just one. You need to really compare the rates and companies. It's important to do this or you could end up spending a lot more than what the car is worth.
