An auto loan is an agreement between a car purchaser and lender. The lender lends you money to buy a car and you pay it back over a period of time, typically with interest. The loan principle is the amount you need to borrow for the car. The interest charged is how a lender makes money on what they lend to customers, and it must also be paid back over the life of loan.
The term is the length time a borrower has to repay the lender the entire loan. Car loans are typically slowly repaid in monthly installments over terms of three, five, or seven years. Until you repay the entire amount the lender technically owns the car and is letting you use it. A lender can take your car back, or repossess it, if you don't make the agreed upon payments.
A credit score is the number credit bureaus give to individuals based on things including the amount of debt a person has, whether or not they pay their bills on time, and debt to income ratio. Debt to income ratio is calculated by comparing the amount of debt a person carries compared to the amount of money they earn. Your credit score can significantly impact the terms you are able to secure for an auto loan including the amount of money you can borrow and the interest rate you will be charged.
Understanding these three things can provide a broader understanding of the auto loan process. The auto financing specialists at the Loan Doctor can answer any questions you have, and assist you in getting the best possible terms.
How Much Car Can I Afford?
As you begin to shop for a vehicle, purchase price is always a concern for buyers. If you have slow or poor credit, you also may be worrying about whether you will even qualify for a car loan in the Springfield area.
At Loan Doctor, we specialize in approving car financing with bad credit. We will sit down with you and review your credit and income situation, taking your existing financial obligations into consideration. We will then calculate exactly how much car you can afford to ensure that your monthly payment is affordable for you.
Don't let bad credit stop you from getting behind the wheel. To learn more about our vehicle financing programs, or to start an application with us for financing, please get in touch with your local Loan Doctor today.
How to Get Affordable and Reliable Transportation
Life can be expensive. Between mortgage payments, utility bills, visits to the dentist, and putting food on the table each month, it can be difficult for some people to make ends meet. Having a steady job is a crucial part of being able to afford edible food and a comfortable home. Having a good job can depend on a person's ability to afford reliable transportation.
Those who do not have good credit often find it difficult to obtain a loan to help them buy a car. That is why here at the Loan Doctor, we make it our business to help people to find bad credit car loans in Springfeild. We want all of our customers to be able to afford all of life's necessities. Having affordable and reliable transportation is often a crucial part of making that happen.