If you have more than one car loan-perhaps you own a car and a pickup or have loans in your name for a spouse or child's vehicle-you may want to look online for car loan consolidation. The new loan will be secured by personal property helping to potentially eliminate higher interest payments while extending payments across a longer period of time.
Determine Your Auto Indebtedness
Before looking for a car loan consolidation online, determine the amount of all your auto loans. Determine the interest rates you presently pay for each loan along with any fees such as prepayment penalties. If your total indebtedness adds up to the average cost of a new car loan, and the total monthly payments for the longest to be paid loan are less than 60 months, you may qualify for a car loan consolidation. There are certain factors that make the decision an easier one especially if you have differing interest rates and time payment terms between the various loans you wish to consolidate. One loan may be at 6% with 20 months left; another could be at 8% with 13 months left. A consolidated loan might be negotiated to pay off both vehicles at a 5% rate for 36 months at a monthly rate far less than the two present payments combined.
Use the Internet
First, request a free credit report from one of the many sites offering one. You need to do this in case there are any inaccuracies you can correct before arriving at the application stage. Determine your potential monthly payments using this online loan calculator. Use the total amount of car loan principal and interest when making the calculation. The actual amount will be less, but for now you'll produce an understanding of how much you can save with a car loan consolidation. Once you have an idea what the savings could be, use the net to comparison shop different lenders. A good tip for getting better understanding at each site is to visit the FAQ (Frequently Asked Questions) page. Here, popular questions about aspects focusing on loan products available from the lender at this site will be answered. Often a search engine is in place that allows a site visitor to "ask" a question about a loan. Additionally, some sites offer a link to an online representative who can text "chat" with you answering specific questions in almost real time. Ultimately, most lenders seriously looking for your business will include an 800 number on their site for your convenience contacting them.
Online Convenience
Once you determined which lenders look attractive for your needs, ask for a quote. Today's online marketing usually provides free quotes whenever requested so take advantage of this. Obtain at least 3 to 5 quotes. Remember, quotes are only estimates. A real "number" will be determined once you fill out an online application.
Gather Your Info
When applying for a loan from your selected online provider, first gather all you personal information and documentation requested. Your provider may allow for copies to be scanned in and submitted or you may need to fax these in before the application process can be completed.
