Car Loan Jitters? Here’s Some Help!
Airbags are important in a car, so are a few other things.Informed decisions – the order of the day. Here are a few things you need to remember:
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1. Get Down With The Down Payment!
Save up and increase the amount of down payment as much as possible! Remember, you pay interest on the amount that the bank lends you. Not quite rocket science, right?!
2. To Risk Or Not To Risk!
There are two types of interest rates – fixed and floating. If you’re a risk taker, consider the floating rate so that you benefit if the market rate goes down. Then again, there’s the other not so attractive possibility!
3. Score It Up!
CIBIL score – apparently very important! Clear those debts before you apply. No one likes that ‘rejected application feeling’.
4. Don’t Pay For Paying!
Some banks actually charge you a ‘pre-payment penalty’ for paying off your car loan! You might just want to consider the banks that don’t. Just saying.
EXPLORE YOUR OPTIONS. Ahem, that’s where we come in.
I am so proud of the independent our daughter is becoming. She has saved her money to pay for rent and a car this fall, and we were looking to know more about what to know before getting a car loan. I like what was said about saving up for a good down payment. It is good to remember that you pay interest on the amount that the bank lends you. I will be sure to share this information with our daughter, thanks.
Hi Lauren Jones,
We’re glad this information was useful to you. Continue to read our blog for tips on personal finance and banking.