Consider getting a loan? On your quest to know more about these loans, you might have heard a thing or two about them. There is also a tendency for the facts to be mixed with the lies.
Dispel the myths by learning more about credits and car loans. Education is key in protecting yourself against the misinformation. If you’re not careful, you might end up with a botched loan and out of thousands of dollars.
Here are 3 loan myths you should know:
Myth 1 – Receiving Bad Credit Lessens Your Chance for an Auto Loan
While having a good credit helps, people with bad or no credit at all still have the chance to apply for loans. Those unable to receive loans from traditional sources such as banks, car dealers or credit unions can apply through specialized lenders that allow applications with bad credit.
Unlike traditional loans, more qualifications such as proof of ability to purchase insurances or minimum monthly incomes. Borrowers with bad or no credit will also have less flexibility when it comes to loan terms.
Here at Utah Money Center, bad credit will not be a problem. Getting a vehicle title loan is easy, as we have even streamlined the process.
Myth 2 – Bankruptcy Hinders Your Chance of a Loan
If you previously declared bankruptcy, this doesn’t stop you from applying for loans. Getting a car loan, for instance, is actually a good way to re-establish credit reputation. By regularly paying off your dues, you build a positive credit report.
Myth 3 – One Loan Allowed at a Time
Most lenders allow multiple loans at a singular paying period. If you feel two loans will be better, feel free to apply for another one. Lenders usually check if you have a good credit score before approving multiple loans, but there are a number that do not.
Applying for multiple loans demands responsibility, especially with payments. Missing a due date can hurt your credit score if you’re not careful.
If you’re interested in applying for a loan, be sure to research first. Don’t be persuaded by false stories about auto loans. Protect yourself by learning more.
Here at the Utah Money Center, we offer quality loans you can trust. If you’re looking around for the best loans, give us a call. Our products are affordable with flexible payment terms. Apply now and get the loan that fits your needs!