subject: Down Payment Requirements On Auto Credit [print this page] When it comes to auto credit and loans, there are a number of things which have to be checked and provided to get the approval at a decent rate. If applicants are just looking for the finances and are not considering the future repercussions of high interest rate then there are a number of lenders who are ready to finance anyone and their only requirement is that the applicant should be able enough to write or fill the application form. But, it is best to follow the advice of loan consultants who state that it is best to comply with the demands of proficient lenders as they provide finances at decent rate and these have more chances of being cleared on time.
The down payment is an integral part of the auto credit procedure. Earlier, no lender would approve a loan unless a good down payment is provided to them. For those who don't know what 'good' means, fifteen to twenty percent of the loan amount was considered as a good down payment. It provided an incentive to the lender that the loan would be repaid on time. However, the requirements have changed as only banks and few credit unions make it compulsory to have a down payment on hand but even they have reduced the amount that they want as down payment.
As aforementioned, there are lenders who can provide the finances to almost anyone and without restrictions, without even a down payment. But, it is prudent that it is provided as it reduces the amount to be financed considerably and also makes it easier for the auto credit borrower to make the payments on time. Hence, it is best if a down payment (as much as the user can pay) should be paid because it is ultimately going to help the applicant in the future.
Down Payment Requirements On Auto Credit
By: Ben Malfong
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