A
loan
is a type of debt. This article focuses exclusively on monetary loans, although, in practice, any material object might be lent. Like all debt instruments, a loan entails the redistribution of financial assets over time, between the lender and the borrower.
The borrower initially does receive an amount of money from the lender, which they pay back, usually but not always in regular installments, to the lender. This service is generally provided at a cost, referred to as interest on the debt. A loan is of the annuity type if the amount paid periodically (for paying off and interest together) is fixed.
A borrower may be subject to certain restrictions known as loan covenants under the terms of the loan.
Acting as a provider of loans is one of the principal tasks for financial institutions. For other institutions, issuing of debt contracts such as bonds is a typical source of funding. Bank loans and credit are one way to increase the money supply.
Legally, a loan is a contractual promise of a debtor to repay a sum of money in exchange for the promise of a creditor to give another sum of money.
srsarodriguez
asked:
"I live in Houston, Texas and I wanted to find out houw to get an auto loan. I would like to purchase a vechicle that the owner wants $3500 for. Due to my poor credit, I can't get a loan from my own bank. Does somebody out there know of a campny, organization, loan company, etc for people for poor credit?"
Question posted courtesy of:
#1 Raider Fan replied:
"Capitol One, GMAC, Fireside Bank all have programs for people with poor credit. Good luck."
VaTreasures replied:
"There are some programs that help low-income people afford cars."
barkulkum
asked:
"I am planning to buy a Used car and i wanted to get a loan for the car, but i am not interested in getting a used car from a dealer. So i wanted to buy it from a owner. In this case how should i approach a bank or lender on getting the Auto Loan. Please advice."
Question posted courtesy of:
TomB replied:
"Go to the bank and get a personal loan or a line of credit. It is basically what you get when you get a car loan anyways.If you are buying the car off the owner for $5,000, then you'd need a car loan for that. Basically they'd give you a check for that amount and the payment terms would be similar to a car loan: Fixed percent, # of months, etc.Be sure to get a loan that will be enough to cover taxes, title and tags. When you transfer the title you will also have to pay sales taxes on it in most states."
CarMan replied:
"The bank will want a VIN and will want to inspect the car and check it's mileage. They'll look up it's value in their "black book" and pull your credit report. Based on that information, they'll decide how much to loan you. Then you'll have to get the car's title and show a Bill of Sale to get a check to give to the seller. The bank will want to hold the title.If it's an older car for not much money, you might be able to get a personal loan as another answerer has suggested."
Susan replied:
"Yes there are bad credit auto loans online for people with a poor credit history and low FICO scores who need transportation, and need a fresh start in repairing their credit. Although it may seem hopeless if you have blemishes on your credit there is a solution. First you will want to get rate quotes from various sources. This is very important, you should shop around to find the best deal. However, keep in mind that there are different
buying a car, giving no thought to how the auto loan interest rate affects the overall cost of the vehicle or monthly payment. With no plan of action or alternative financing source, this results in them receiving high interest rates and high processing fees which lead to high monthly payments."
Hazel S replied:
"Basically, all you'll need to do is go to your bank or local credit union and take out a presonal loan for amount needed. They will be able to help you with all the details. Cgeck out this site for more information:"
StillCurious
asked:
"I heard that comparing auto loans before shopping for a car is a prudent thing to do. But I've also heard that every time you apply for a loan your credit rating is negatively affected. What's the truth?"
Question posted courtesy of:
tonalc1 replied:
"Each time you apply, the loan company runs your credit report. Excessive inquiries can lower your rating."
redhairedmama75 replied:
"In general every time a lender checks your credit your score drops x number of points. The lower your score is the less likely you are to get decent financing. It seems to be a catch 22."
Bret N replied:
"Applying at a lot of places is bad. This is why, when you buy a home, they tell you to not do ANYTHING credit wise till your house is signed on and all."
Riley replied:
"There are many auto loan options available today. Today, stiff competition among auto loan financing companies
finance option. You can apply for online car loans on the Internet, or get it from your car dealer."
Hiro replied:
"This is a common misconception about FICO scores. While having too many inquiries on your report can lower your score the timing and frequency make a difference. Because it's common for most people to shop their loan to multiple lenders the scores block out a period, usually 30 days, to count as a single inquiry. So if you're shopping for a loan it's best to do it all at once. They'll all show up on your report but the scores will only count them once.Where you hurt yourself is if your shopping for a new credit card, loan, line of credit etc every couple of months. Usually the number of inquiries are counted over a 12 month period. And it's worse if you were shopping recently vs. 6 months ago. The recency makes a difference as well. Which is why it's best not to do anything 6-12 months prior to a mortgage application."
Marry M replied:
"need an auto loan from online...don't worry you surely get it.i think that th e below website will help you to find the right solution."
beetle1283
asked:
"I am about to buy a 2003 Honda Civic from my uncle for approximately $10,000. I had intentions of putting down 5,000 or 6,500 dollars (depending on what I sell my current car for) and take out a small auto loan for the remaing 3,500 or 5,000 for about 36 months.The rates I am finding are not as good as I would have hoped, through no fault of my own. I am 24 and haven't done anything that would have given me bad credit. I pay back all my bills and whatnot.Am I better off just buying the car outright (I can afford it) or taking out a loan for the sake of taking out a loan. I've heard a few times that a small loan really helps your credit.So put down 5,000, take out the 5,000 loan amount, put 5,000 in a savings account and let the loan cycle? What does that mean."
Question posted courtesy of:
P J replied:
"Put the money to pay off the loan in a savings account, get the loan let it cycle about 6 months then pay the balance off. This gives you a payment history although you will pay a bit of interest it will be a good trade line.Also initially your score will take a 5-7 point hit for the credit report when getting the loan, rebounds rapidly!"
SPIFIMAN1 replied:
"Auto finance is what I do for a living and auto loans take 6-months of payments made as agreed to be rated.Your credit will be helped the best after 12-payments made as agreed. This is the first thing lenders look for when they are looking at a application for credit.I would agree with PJ except for the amount of payments you should make. I would make at least 12, and make sure whatever lender you use that they report to all three credit bureaus or you are wasting your time."
delray d replied:
"There are many auto loan options available today. Today, stiff competition among auto loan financing companies
finance option. You can apply for online car loans on the Internet, or get it from your car dealer."
BigFriday
asked:
"The answer is hard to find online. Some suggest at least $10000 loaned, or subject car must be only 4 or 5 years old, or max 48 months repayment term, etc. I realize there will be some variables, but there must be some standards here. While we're at it, are there standards for how high your credit must be to get a private party auto loan?"
Question posted courtesy of:
lisa s replied:
"I don't think that there are any regulations that govern private party loans. As long as the buyer and the seller are in agreement with the terms and both parties sign the paperwork agreeing to same, the terms can be whatever the two of you agree upon."
If you’re in the market for a new or used car, it’s important to research the vehicle to make sure you get a good deal when you visit the dealer. Part of this research should include finding web sites that have tools to calculate auto loans.
In its latest survey released this week, the Consumer Federation of America finds that many states fail to protect consumers from the abusive lending practices of payday loans, auto title loans and short term unsecured installment loans.
In its latest survey released this week, the Consumer Federation of America finds that many states fail to protect consumers from the abusive lending practices of payday loans, auto title loans and short term unsecured installment loans.
There are many reasons that people consider auto loan refinancing. After purchasing their car they may not be so happy with the terms of the auto loan. Sometimes we are so in love with a car that we want it no matter what the terms are, and then have buyer’s remorse
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