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Apply For Car Loan Texas
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500 Below Cars

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How To Apply For A Car Loan In Texas

There is literally nothing better than driving around in the comfort of your own car, listening to music, and just enjoying your time throughout the ride. We know that feeling, and we also understand that you cannot get it using public transport. The feeling of independence and freedom that comes with having your car is just different. You neither have to depend on someone nor do you have to struggle, trying to find an Uber and paying excessively every single day due to surge pricing.

So, if you’re in Texas and are looking for ways to fund your car, we have the perfect solution for you in the form of an auto loan. This extensive guide teaches you how to apply for a car loan, helping you make the perfect choice for your dream car.

Keep reading for more!

What Is An Auto Loan?

Let’s start with the basics. An auto loan allows you to borrow money to purchase a car or truck. A car loan is usually a simple interest loan that needs to be paid back between the terms set in the purchase contract. Your vehicle purchase is probably the most significant investment of your life after your home, and it’s necessary to finance it with a loan. The best part about auto loans? Depending on the borrower’s budget, even an expensive car will become affordable for you.

How Is A Car Loan Different From A Consumer Loan?

You might be thinking that a car loan is usually the same as any consumer loan, but that’s not entirely true. Investopedia explains that an auto loan is always a secured loan as it’s specifically designed to take care of your car financing and comes with collateral. In contrast, a personal loan is not secured as it is used to purchase almost everything. This is one of the reasons the interest rates on auto loans can be lower, as the lenders can seize the vehicle to cover the unpaid loan if necessary. However, interest rates can be hired at Buy Here, Pay Here dealerships as they typically take on more risk by lending to customers with misunderstood credit. 

Is An Auto Loan Similar To A Lease?

When you apply for a lease, you opt to pay for the car in monthly installments, usually lower than its actual price, but it’s not the same as an auto loan because you have to return the car in the end. When you apply for an auto loan, you are paying the total money in monthly installments against the loan balance. Once you have paid the loan, you will become the sole owner of the vehicle.

When To Apply For An Auto Loan & Fix Your Credit History?

If you don’t have enough savings to afford a car, we suggest going for an auto loan to finance the car. It’s also important to remember that you need a credit history to apply for a loan.

Here are some of the ways to smooth out the process of loan application:

  • Request a credit report and see if you spot any unnecessary mistakes that reduce your chances of getting an auto loan.
  • Check if you have any unpaid debts or if it has any information that isn’t yours.
  • Review if all your information is updated and there are no incorrect notations for closed accounts.
  • Improve your credit score to show the lenders that you pay your debts and loans on time.
  • Analyze your debt-to-income ratio to show the lenders to check that you can afford to pay each month.

Ways To Apply For An Auto Loan In Texas  Through The Bank Of Texas

Through the Bank of Texas, you can apply for a loan ranging between $5,000 – $100,000 for an old or new car. This loan is granted between 36-72 months, and the interest rate is fixed for the life of the loan. Also, the interest rate is dependent on factors such as auto-debit and credit history. If you have less than excellent and substantial credit or choose not to auto-debit from a Bank of Texas checking account, you may be offered a higher interest rate. The maximum LTV for this product is 100% for new vehicles and 110% for used vehicles. For more details, you can visit their website and fill out the online application.

Alternate Auto Loan Options With A Bad Credit History

Got a bad credit history and cannot apply for an auto loan through the Bank of Texas? Texas has flexible online lending laws that make it easy for you to get auto financing even with bad credit history or bankruptcy.

 It is time to explore some other options for fast auto financing with a private lender, such as:

500 Below Cars

  • 500 Below Cars is a Buy Here, Pay Here dealership that specializes in misunderstood credit. 
  • 500 Below Cars are able to take on more risk with their own In-House Financing terms. You can schedule an appointment with us today through our In-House Financing form

Auto Credit Express

  • They have closed over $1 billion in bad credit auto loans
  • On boards clients with bad credit, no credit, bankruptcy, and repossession
  • With a bad credit application, your income must range around $1500/month

Car Loan

  • On boards clients with bad credit, no credit, bankruptcy, and repossession
  • There are no obligation application fees
  • Provides same-day approvals
  • Connects you to over 1000s of car buyers a day with auto financing

My Auto Loan

  • You can apply for a loan to get funding for a new, used, or refined car
  • A national network of lenders is available
  • Allows bad credit history
  • You can also avail of an online loan credit history
  • Grants up to to 4 offers in minutes

 

While these happen to be our top picks, you can also check out other private lenders in Texas to finance your car. With the help of a private dealer, you will be available to find the best possible auto loan options for your car. The private lenders are also quite helpful and will ensure that you find a car or truck that meets your needs and fits your price range. We hope this extensive guide was helpful, and you’ll soon be making rounds in Texas, chilling in your dream car.

Happy Driving!

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