Your Car Loan TIPS - Part II

• Bank errors

There are claims that more than 50%of home loan statements contain calculation errors, for e.g. entry of the incorrect balance or applying the wrong interest rate. These simple errors can be costly but favourable to the lender. The point to note here is that even banks make errors. There are various softwares for home PC that can run a check on your statements.

• Small lenders is an option

When shopping around for a car loan, consider community banks, credit unions and other smaller financial institutions which might be more approachable and offer lower interest too.

• Credit Cards are also a choice

Yes, credit cards have hight interest rates but are easier to secure and offer greater flexibility of repayments.

• Is a personal loan vital?

Think twice before borrowing money without security. You may already have a better option available, for e.g. home equity extension to your home loan, a new loan that uses your property as security, a credit card, or even a rich relative.

• You may get a ‘relationship discount'?

Relationship discounts are available from banks and credit unions for those borrowers who use a range banking products with the same bank or credit union. If that’s you, then you may be entitled to home and personal loan interest rate discounts, term deposit bonuses, savings account fee waivers and credit card annual fee waivers.