Best Ideas to Get a Loan for a Car

Traditional auto financing from banks is still the best idea to get a loan for a car. But with many car loan programs coming with downsides (some of them even have notoriously high interest rates), you’re probably asking if there are other channels that offer financial assistance. Luckily, there are several different loan alternatives for you to choose. Check some of them out below.

Credit Card Cash Advances
Let’s start with your credit card. While some credit card cash advances can be pricey, they do have very low interest rates. Plus, there are ways to get credit card funding less expensively, like proving to the bank that you can repay the money within a few weeks. So if you’re looking for an alternative car financing option, best take advantage of the credit card you own (if any).

Short-Term Bank Loans
Short-term bank loans offer another alternative bank financing program you can take advantage of. Not only are their interest rates way lower than those in car loans, but they also don’t require you to pledge an asset as collateral. Plus, there are periods when the banks offer these programs with discounts and other perks. So before you decide to grab that car loan with a whopping triple-digit interest rate, better check to see if you can get a short-term bank loan instead.

Peer-to-Peer Loans
But if you’re tired of applying for loans in banks, you might want to try out peer-to-peer (P2P) loans. Funded by investors instead of banks, P2P loans have lower interest rates and higher approval rates. The minimum amount of money you can borrow through P2P lending is also higher than the amount offered by many other car loan programs. Plus, prepayment doesn’t come with penalties. The only downside you’ll have to deal with is the risk of borrowing more money than you need (which is easily remedied by returning the extra cash as soon as possible).

Private Lending Companies
Going to private lending forms is also one of the best ideas to get a loan for a car. Aside from providing quick assistance, many private money lenders tend to have easier requirements for their loan programs. Moreover, they offer their clients various perks and benefits not featured in banks and other money lending channels. So if you’re facing any car-related issues and you’re short on cash, best consider visiting the nearest private lending company.

Credit Union Assistance
Credit unions make great alternatives to banks and private lending firms. Not only do they offer the same programs and services, but they also tend to give out financial assistance at more favorable rates and more generous terms. Moreover, certain charges like transaction fees, lending application fees, and what-not are cheaper. So if you’re a cooperative member, better take advantage of their financial assistance schemes.

Extra Part-Time Job
You can also find a temporary job to finance a car or cover vehicle-related expenses. There are countless opportunities out there that offer project-based and contractual employment. If you have extra time on your hands, as well as the skills these potential employers need, then you might as well apply.

Help from Family or Friends
Lastly, it won’t hurt to ask for financial assistance from your family and friends. Borrowing money from loved ones comes with many benefits, including little to non-existent interest rates, flexible repayment terms, and waived technical requirements. Of course, you need to cement your deal with an iron-clad contract so both parties can avoid trouble. You can even offer an asset as collateral as a gesture of good will.

Wrapping Up
Any of these channels offer the best idea to get a loan for a car. So if you’re tired of the traditional car financing offered by banks, best try out these alternatives.