Year: 2017
Factors to Consider Before Getting an Auto Loan
- by Benjamin Garza
- 8 years ago
- 0 comments
Many people aspire to drive their cars, but they lack the necessary funds to have their dreams come true. The good thing is that car loans can bridge this gap by allowing individuals to fulfill their dreams by paying some amount of the cost of the car in monthly installments. Many auto dealers can offer guidelines to their clients on how to go about the loan. However, before taking a car loan, here are some important factors to consider.
The Rates of the Loan
The rates of the loan depend on factors like the model of the car, your capacity to repay the loan, and your employer among other factors. However, most banks offer preferential interest rates on the car loans to their existing clients. Therefore, you should first check for such offers with your bank and then compare the rates with the online lending market platforms. You should also check the rates that the dealer finance companies offer before making the final call.
The Loan Amount
Many lenders will finance up to 100% of the cost of the vehicle, and that is why you should opt for the lowest loan amount. This will help you to reduce your interest costs. When you are doing this, make sure that you are not using your emergency fund or redeeming your long-term investments because this will have negative financial implications in the future. To avoid this, save money so that you can have enough accumulated funds to make a down payment because this will reduce the burden of the auto loan.
The Processing Fee
This is the fee that lenders charge to cover the costs of the loan application process. This fee is non-refundable. It is important to know that many lenders often waive off processing fees or significantly reduce them during some holidays or just their annual and semi-annual offers. The offer may be tempting therefore you should be cautious and check whether they are charging higher interest rates or they have other hidden charges to cover their loss on the processing fees.
Your Credit Score
Before approving your car loan, lenders will check your credit score. Some even fix the car loan rates just by checking the credit scores of their customers. The clients with a high credit score will easily get their loans approved. It is therefore essential to present the lenders with your credit information when making the loan application to make the process easier and faster. If you have a bad credit score, you can work towards improving it.…
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Benefits of Financial Technology
- by Benjamin Garza
- 8 years ago
- 0 comments
Financial technology is widely known as FinTech, and it is the use of technology to deliver financial products and services. There is a wide range of financial products and services that can be provided by innovative technology. Such products and services include convenient and fast methods of payments by the consumer. In other words, improving the clients’ user experience. Many business segments have benefited from this innovation. For instance, mobile payments, lending, and money transfer among other transactions. Many consumers have greatly benefited from the rapid growth of the innovation, and this has ultimately helped businesses because they have reduced costs. In addition to this, there is a healthy competitive environment between the companies. Here are some benefits of financial technology.
Better Payment Systems
This technology has enabled businesses to be more effective than they were before because the invoices are accurate and the method of collection of payment is effective. In addition to this, consumers are often attracted to convenience. Therefore, for those businesses that have adopted this technology, there is a chance that they have retained their customers and increased their customer base because of their convenient, professional services.
Rate of Approval
Reports show that many small vendors are starting to use lenders who are involved in financial technology. This is because such lenders are most likely to increase the accessibility and hasten the rate of approval for finance. A while ago, the application process was time-consuming. However, with financial technology, the application process and receiving of the capital is a process that takes just about 24 hours.
Advanced Security
For people to confident in the financial services, they are using, applying the latest security techniques is needed. Many mobile technologies are being invented that are highly effective in ensuring that consumers have maximum data privacy and that the data is secure. Some of the latest security options include the biometric data and encryption.
Convenience
The companies that are involved with financial technology often use mobile connectivity. This has therefore increased the number of customers who can have access to these kinds of services. In addition to this, the efficiency and convenience of transactions are significantly improved. Consumers now have the option to manage their finances using their smart-phones and tablets, and this has enabled the business to provide their consumers with an all-round experience thus improving the consumer experience.…
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