The Internet has made it easier than ever before to apply for a personal loan, with approval taking a matter of minutes. And a personal loan can be used to buy a used or new vehicle, catch up on medical bills or anything else you want. While most consumers still think of taking out an auto loan to buy a car, in some cases it makes more sense to get a personal loan, and they have several advantages over a car loan.
If you’ve ever applied for a vehicle loan at the dealership, you know it can literally take most of the day. On the other hand a Miramarfcu vehicle loan takes no more than a few minutes online; you’ll need to verify your income, and supply some financial information, but that’s all there is to it. Approval is fast and once approved, you can often access your funds the same day, as they are simply deposited in your account. We all strive to have good credit, but that’s not always the case and most personal loans don’t take into account your credit score. It’s all a big difference from the dealership where a poor credit score can increase the cost of your overall car payment significantly over the typical five or six year vehicle loan.
A personal loan typically has more flexible repayment terms too, allowing you to choose the monthly payment and term that best suits your budget and overall financial situation. And you’ll probably have paid off a loan a lot sooner than it would take to pay off a vehicle loan. Another thing to consider is that a personal loan is an unsecured loan. It means that you don’t have to provide anything as collateral against the loan, and while you probably have every intention to make the payments on time, the lender won’t take any action if you’re late, or even if you just can’t pay back the loan at all. A vehicle loan of course, is secured on the vehicle that you’re purchasing, meaning that the lender will take the car from you if you default on the loan or fall several payments behind.
A personal loan can be used for absolutely anything; it isn’t intended just to buy a car. That means that should you find a vehicle for less than the amount you borrowed and you have some money left after paying the car, the remaining amount can go towards bills, a high interest credit card balance, home improvements or anything else. The lender isn’t going to ask what you used the money for. Although a car loan is specifically designed to buy a new or used car, you may find that a personal loan suits your needs a lot better.