How to Wash Under the Hood of a Car?

A clean and tidy car not only attracts passer-by but also ensures better performance in the long run. Unfortunately, many car owners only focus on cleaning the exterior body of the car. They do not check how much dirt is accumulating under the hood. It is the engine compartment located under the hood, which should be time cleaned to avoid mechanical and electronics issues. Follow the explained guidelines to clean under the hood of your car. 

Necessary preparation

  • Ensure the engine is cold

Do not start washing the car under the hood right after parking it. Wait for at least 30 minutes so that the engine can get cool and then start the cleaning process. You may probably damage engine component if you throw cold water on those components. Wash your car during the morning time if you are cleaning it at home. 

  • Protect vulnerable parts of your car’s engine

There are many electronics and mechanical components which may get damaged by water. It may require expensive repair work if you do not take precautions. So, first, cover all the vulnerable parts of the engine and then begin the washing process. 

  • Remove the filters

Filters can easily get ruined when you are washing under the hood of your car. Remove all those filters and put them away from the cleaning area. Take the air intake filter out and also the cabin air filter because both of them are vulnerable to water damage. 

  • Disconnect your car’s battery connection

Remove cables connecting the battery to your car’s electronics systems. It may cause a short circuit in the vehicle if wash under the hood without removing battery cable. So, first, loosen the nuts of the cable and then take it off to prevent the flow of current. 

  • Arrange necessary car wash supplies

You will need water, a car wash detergent, a hose, a microfiber cloth, a brush, scrubber, and degreaser to clean your car under the hood. Buy all these supplies from a local auto parts store and arrange them around the car for quick access. 

How to clean a car under the hood?

  • Spray degreaser

Spray some water on engine components you want to clean and then spray degreaser on non-sensitive areas. Know which are non-sensitive metal components of the engine and then use the degreaser. It will loosen grease from those components, and then you can remove it easily.  

  • Rinse car’s engine:

Let the degreaser sit for a while and then introduce water to clean it. Rinse down the engine with plain water by using low-pressure water jet. Thus, you will easily remove all the grime, dirt, and remaining degreaser from your car’s engine. 

  • Clean the engine with soap water mixture:

Soak a sponge in soapy water mixture and then rub it over recently degreased components of the engine. Rub carefully and do not touch covered components to avoid water damage. Now rinse off the whole engine section to remove the remaining dirt. 

  • Dry off the engine:

Do not start the car until you remove all the water. Take a clean and dry towel and wipe wet engine components. Let the engine dry and then again use a microfiber cloth to clean water drops. 

Getting the car into working order

Remove all the protective coverings and clean the covered components with a dry microfiber cloth. Apply protectants to vinyl and rubber parts and reconnect your car’s battery. Now your car is ready to run. That’s how you can clean under the hood section of your car without damaging any water-sensitive component.

How to Know Which Insurance to Take on a Rental Car?

You may not need additional insurance if you already have auto insurance coverage. So, should you get extra protection on a rental car or not? Continue reading to reveal the answer:

Be familiar with the limitations of your car insurance

Whenever you rent a car and drive it, your auto insurance coverage will be transferred to that vehicle. Most of the auto insurance companies provide this benefit, and you can confirm it with your insurance agency.  

Suppose another person is driving that car “who is not on your auto insurance policy,” your auto insurance coverage will not cover the damage caused by that person. In case your policy offers minimum coverage, it may be necessary to calculate the value of the loss in order to decide whether or not you should supplement your coverage. 

Does your credit card company offer any protection?

Some credit card issuers offer car insurance coverage when you use their card to rent a car. Reveal the details regarding getting reimbursed. It may be necessary to inform the credit card issuer within the predefined time period if any unfortunate incident takes place. 

In most of the cases, the credit card insurance works only when the customer pays full rent of the car by using that card. Refuse to take the rental company’s collision waiver, and you should also address yourself as the primary renter. However, it can also cover some additional drivers who are traveling with you. 

Consider the following conditions to learn if you are covered

Do you own an auto insurance policy which does not cover rentals on a business trip? Many personal auto insurance policies do not provide cover for vehicles used for delivering supplies, food, or other travelers for business purpose. 

Some insurance policies also do not provide coverage for long-term rentals. The coverage might be limited in most of the cases or no coverage at all. 

The auto insurance company might not offer coverage when you are traveling abroad. 

Auto insurance coverage also does not work when you are renting certain vehicles. So, check your policy carefully to reveal which kind of rental car it does not cover if it provides coverage for the rental car. 

Consider the rental company’s options if you aren’t covered adequately

If your credit card company or insurance policy does not offer enough coverage, you can consider solutions provided by the rental company. It is better to have some coverage instead of having no coverage at all. 

You will be paying a nominal amount every day. It will prevent you from spending thousands of dollars for damage repair and injury damage. These are a few plans which are required in most of the states by law. 

  • Collision damage waiver or CDW is also famous as Loss damage waiver (LDW) or optional vehicle protection. It merely means the driver will not be liable if an accident takes place, and he can simply walk away. 
  • Liability insurance is another popular plan that offers up to $1 million coverage. You will be paying only $7-$14 per day, and you do not need this policy if you already have one. 
  • Personal accident coverage costs only $1 to $5 per day, and it covers all the medical bills for people traveling in the car. You should not use it if you already have an insurance plan. 
  • Personal Effects coverage also costs only $1 – $4 a day, and it offers cover for expensive items you are carrying in the car get stolen. 

Choose a plan that suits your demands when you are traveling, and you will always be protected.

How to Dispute an Insurance Total Loss on a Car

Car insurance providers always compare the repair cost of a damaged vehicle with its value. In case the repair cost is higher than the value, it will be considered total loss or totaled. The insurer will provide the car owner with the amount equal to the value of the car instead of providing money for repairs. 

You as a vehicle owner can take certain steps to dispute a total loss and request the insurance company to consider your demands.  

How to get an estimate from the insurer?

  • Contact your insurer

Remove your vehicle from the accident site. Drive it back to home if possible or hire a towing truck to relocate your vehicle. Now contact the insurer, and a representative will communicate with you to get certain details such as car model, year, make, and details related to vehicle damage. The insurer will assess the condition of the car and provide support for towing that vehicle. Get details on where they are taking your vehicle before they send support. 

  • Wait until they make a decision

The insurer will inspect your vehicle’s condition to assess whether it is totaled or not. If it is a total loss, they will inform that you will receive the value of the car which was estimated prior to the collision. The insurer will also request you to title that non-repairable vehicle to their company so that they can sell it to salvage yard. 

  • Ask the representative to provide the report

Contact the insurance company representative and ask him to send a report he has created to calculate the value of your car. Get that report and review it for missing details and inaccuracies. 

How to dispute the total loss?

  • Collect necessary records

If you think the insurance provider is undervaluing your car in that report, collect a copy of records to prove its value. Carry receipts of add-ons, upgrades, customizations, regular maintenance, repairs, and documents you have got from the previous owner of the car. 

  • Understand why the insurer is undervaluing your vehicle

You can take the support of Kelley Blue Book to reveal why your vehicle is undervalued. Many insurers consider KBB to assess vehicles’ values. You can also use this book to evaluate the value of your car. It will also provide a listing of for-sale cars in the same make and model as your car was before the accident. So, you can easily reveal the actual value of your car. 

  • Submit the gathered details

Contact the insurer and provide the copies of receipts and the research you have done to assess your vehicle’s value. The insurance adjuster should have experience of dealing with similar cases in the past. Provide all the pieces of evidence you have collected and let the adjuster review your case. 

  • Ask for appraisal

Contact the insurer and ask if that company provides right for appraising vehicle’s value. Now that company may hire an appraiser to reassess your vehicle’s condition, or they will simply increase your vehicle’s value and offer more money to sort out the matter. 

  • Try to negotiate

Do not underestimate the power of your insurance company. It has the best people to make its point clear and therefore you should always try to negotiate with them. Find ways to bring them on the table for settlement instead of getting anxious and angry about the situation.  

  • Take legal support

If the negotiation does not work, you can file a complaint in your province’s insurance department against the insurance company. The department will check whether your insurer has acted as bad faith or not. If the department finds flaws in the insurer’s report, it can be penalized, and you can get settlement amount as per your valuation of the car.

How to Get Cheap Car Insurance for Young Drivers?

It is never easy for a young driver to get affordable car insurance. However, you can use some proven tactics to reduce the cost of car insurance. These tactics help pretty high whether you are young or not. Those tactics are explained in this post:

Learn how to get the best rate on car insurance?

  • Drive like a responsible person

The car insurance rates will be quite low for you if you drive safely. Always keep your car’s speed within the speed limits and do not even think about driving your car under the influence of drug or alcohol. Follow all the traffic rules, and you will never face any trouble.

  • Search for multi-line discount

It is common for people now to buy health insurance, life insurance, business insurance, and other insurance policies. You may also own some of these insurance policies. Contact your insurance company and learn about discounts they can offer on car insurance. 

  • Look for promotions

Some insurance companies offer term bonus for safe driving. You can take advantage of these promotions if you never have broken traffic rules. So, contact a few insurance agents and know if their company has a promotional program for safe drivers. 

Things to consider as a young driver

  • Your age and gender can influence the rates

Young age male drivers are asked to pay more expensive premiums than female drivers. The difference will not be too big because premium rates are costly for both males and females aged between 16 and 25. Your location can also influence how much extra you will pay for the insurance. 

  • Look for a good student discount

Some companies provide appealing discounts on insurance for students with good grades. Smart students with good grades are considered more responsible. Therefore, they are less likely to drive their vehicle in a risky way. That’s why insurance providers offer good student discounts for young customers. 

  • Take advantage of family policy

Ask your parents to contact their insurance provider to know if they can add you to their existing insurance policy. It is a feasible solution for those who do not want to buy a separate car insurance plan at a very young age. You will be added as an occasional driver, and therefore interest rates will be pretty low.  

Do proper research to choose a comprehensive policy

  • Get quotes

Meet insurance agents of different companies and get quotes from all the accessible sources. It will reveal different rates charged by companies, and it will also reveal the benefits of different products. You can bargain better and convince the insurer to provide a cheaper and more beneficial plan. 

  • Know what kind of coverage you can get

The coverage mainly depends on the car’s condition. The insurer provides the best coverage for new vehicles. You might not get excellent support if you are insuring an old car. Your insurance can cover the cost of your car if it is on lease. You will get the full payment is involved in a severe accident. 

  • Learn more about interest rates in your region

Car insurance rates are not the same everywhere. Companies charge the same prices for adults and teenagers in some areas and different rates in other areas. You should contact the insurance agent and learn how much extra or less they are charging for car insurance in your region. 

  • Learn how the vehicle type affects interest rates

There are some states in the USA where some vehicles are considered more accident-prone than others. You should check these vehicles and choose a car or truck which is regarded as safe by insurance companies. Thus, you can get car insurance at lower rates.

How to Wash a Car by Hand?

If you are someone who enjoys driving an eye-catching and clean vehicle, you would love to learn how to wash a car by hand. It is not just about making the car look beautiful from outside, but also about improving the interior appeal of the car. 

You can get much better results by washing your car by hand than a commercial car washing service. This is how you can do it:

Necessary preparations to wash a car

  • Park your car

Park your car in shade or garage for cleaning. Try to prevent direct sunlight because it will cause premature drying. Retract the antenna, close all the windows, and pull the windshield wipers before you begin to wash your car. 

  • Arrange everything you need to wash a vehicle

Determine which detergent is best for car washing and get it. Arrange water supply along with a microfiber cloth, a hose, towels for drying the car, a brush or scrub to remove tough stains of dirt, and other supplies that you can easily find in any auto parts store. 

  • Take one bucket water

Check the label of car wash detergent and follow the instruction to mix it in the right quantity. Mix the detergent perfectly in one bucket water and use it to apply the cleaning agent evenly across the car. 

  • Take plain water in another bucket

You will use need this water for rinsing. You can increase the quantity of water as per your demands. 

Washing the car

  • Hose off the car

You have to soften dirt and loosen the dirt before applying the detergent. So, hose off the car completely. Avoid using a strong jet of water because it can damage your car’s paint. Point the hose towards the downside to prevent water from dribbling inside your car. 

  • Begin with the wheels:

A lot of dirt accumulates in the wheels. Therefore, you should wash the wheels first. Take a long and skinny brush to remove dirt out of the wheels and then use a water jet to clean those wheels. 

  • Use a long wash mitt:

Get a long wash mitt, soak it into the soapy water, and then apply the soap using this mitt across the car. It is perfect for applying car wash detergent it is made of soft fiber, and it does not cause any kind of scratch. 

  • Clean one section at a time

Do not think about applying the soap all across the car and then rinsing the outer body. Clean one section at a time to get better results. 

  • Remove bird droppings

Get a scrubber, soak it into the soapy water, and rub it over bird droppings. You will quickly remove it and then rinse that spot with plain water. 

  • Keep sponge or wash mitt clean

Do not apply dirty wash mitt or sponge time-and-again to clean other sections of your car. Complete one section and then clean it before applying soap on another section. 

  • Prevent premature drying

You should keep the whole car wet until the whole car is washed. It is important because water drops can dry out and leave their marks on the outer body of the car. 

  • Wash the lower body section:

Clean the lower body section after cleaning the upper body. It will get dirty again if you wash it before washing the upper body of your car. 

Drying and waxing the car

  • Use clean and dry towels to dry your vehicle. 
  • Apply wax only after drying the whole outer section of the car. 
  • Use touch up paint to remove scratch marks and rust damage. 
  • Use water repellant to clean the windshield and windows of your car. 

Use a vacuum cleaner to remove dust and dirt out of your car’s dashboard, seats, and trunk. Yes, it may take a few hours, but you will get a perfectly cleaned car to go out in the evening.

How to Reduce Your Car Payments Without Getting a Refinancing Loan

Poor credit, high-interest rate, low down payment, and using BHPH finance, are a few reasons for unsuitable car payments. People easily get trapped by smart dealers, and then they spend a lot of money over the principal amount. You can find a way out of this situation, and this guide will help you in learning the ways of reducing your car payments without refinancing the loan. 

Learn about the car loan modification

  • What is car loan modification?

A car loan modification is a great solution to prevent the car’s repossession. It works just like refinancing, but it can be used as a solution only in distressed conditions. The loan term changes in order to make it more convenient for the buyer to pay off on time. Many things change when a borrower goes for a loan modification. You should carefully check new changes if considering it as a solution. 

  • Know-how loan modification and refinancing are different:

Refinancing simply means replacing the existing loan with a new one to get lower interest rates and better terms. Loan modification involves only the adjustment of terms, and that modification will take place for a short time. It is represented as a solution only when the customer is in a distressed condition. 

  • Is it the right solution for you?

Car loan modification process is pretty complex. It takes quite a long time and therefore it is not a suitable solution for many people. Most of the people qualify for loan modification when their auto loan is “upside-down” or underwater. There are many conditions in which loan modification might seem like the best options, including car accident, loss of income, etc. 

  • Do you qualify for a car loan modification?

You need to prove to the lender that you qualify for modification in order to apply for the process. You can qualify if you have a great track record of honestly trying to make loan’s monthly payments or if you can prove that you are now unable to pay because of some unforeseen financial conditions. 

How to apply for a car loan modification?

  • Compute your DIR:

DIR stands for debt-to-income ratio. It helps you in assessing your real debt and how likely you are to pay or not pay that debt. It simply represents the ratio of monthly debt payments to the amount of money you earn every month. 

  • Talk to your lender:

Call your lender to learn about car loan modification or hardship program it has. If there is such a program, then get more information and follow the steps to apply for the car loan modification. 

  • Keep all the required paperwork ready:

The process only begins with a discussion with the lender. Now you should get details on the required documents and keep those documents ready to apply for a loan modification. Your lender might ask you to provide many documents. So, keep those papers ready in advance. 

  • Write a car loan modification letter:

A hardship letter, also known as a request for assistance, is required by many lenders to initiate the process. You can jot down in letter why the car payments are unaffordable for you and details about your current financial conditions. Jot down all the important reasons for loan modifications to make your case stronger. Prepare a good letter, submit it, and then wait for the lender’s response.  

  • Check your lender’s offer:

The lender will provide you with many ways of repaying your loan. They will assess your conditions and then present some offers best suited for your condition. Assess each offer carefully and then choose a loan modification solution that helps you in repaying the loan conveniently.

How to Calculate Total Interest Paid on a Car Loan?

Car loans make it quite easier for common people to buy a new car. You just need good credit history and appealing credit score to lure lenders for offering car loans. You can get some great offers, but at the same time, you will be paying a lot more than the principal amount. 

Do you know how much interest you pay along with the principal amount when you get a car loan? Let’s find out how to calculate it. 

Understand car loan terms

  • The amount you borrow

It is called the principal amount that you borrow from the lender. It includes sales tax and fees that you pay to buy a new car. A car loan also includes a rebate, which is the amount you receive to buy the selected vehicle. 

  • The loan term

It is the amount of time defined in the agreement to pay off the outstanding amount. Most of the people choose a term of six years. You can also go for a longer-term, but thus you will be paying more interest. 

  • Computing the interest

Interest rate is mentioned as the Annual Percentage Rate or APR on a car loan agreement. You can compute it by multiplying the interest rate with the outstanding principal amount. 

Using an online calculator to calculate total interest:

  • Using amortization calculator

The amortizing formula is pretty complex. The borrower pays the monthly payment when a loan is amortized. It will include both the principal amount and interest owed. The share of principal repayment increases and interest reduces in fixed loan payment as the time goes on. Therefore, it becomes a bit complex to make accurate calculations manually. 

  • Make the required inputs into the calculator

It will ask you to provide principal amount along with the term of your loan and interest rate on loan. 

  • Assess the am0ortization schedule

The schedule will provide a monthly payment amount along with that it will include the interest on the first month’s pay. That interest rate will reduce with time. 

  • Revealing the interest rate on loan:

The amortization schedule will analyze and reveal total interest applied on a car loan. You can make this assessment before taking the loan to choose another structure with a shorter term and lower interest rates with larger monthly payments. 

Using a simple interest formula to compute total interest

  • Learn how to compute total interest:

Most car loans come with simple interest. You can calculate the amount you will be paying for simple interest by using the following formula:

M = P*i(1+i)n/(1+i)n-1

Here 

M = Monthly payment

P = Principal amount

n = Total monthly payments (throughout the life of that car loan)

I = Monthly interest rate

  • Put all the required variables into the equation:

Check your loan agreement to find the value of all the included variables, or you can also contact your lender to get these details. 

  • Solve the equation in a simple way:

As you can see, it is quite a complicated equation to solve. So, solve one part at a time and then make the final calculation. Do not try to calculate all things at once because thus, you may make some mistake and get the wrong value. 

  • Calculating total interest you are paying on your car loan:

You will get the value of monthly payment by solving that equation. Now multiply the number of payments you will make throughout the life of car loan by the value of the monthly payment. You will get the total amount you will pay to pay off your car loan. Now subtract the principal amount from the sum of all the monthly payments to get the value of total interest on your car loan.  

How to Get Car Loans after Bankruptcy?

Although the process is pretty simple, it can be stressful to get a car loan. Don’t worry if you faced bankruptcy in the past. Look for the car that suits best to your needs instead of worrying about the loan. Re-establish your credit history and follow the tips explained in this post to get a car loan. 

Assemble your credentials

  • Assess whether you need a personal vehicle or not

Think seriously before you decide to buy a new car. A car is considered the second most expensive thing a common man buys after purchasing a new home. It is not just the cost of the car, but also the price of gas, tolls, parking, property tax, maintenance, insurance, etc. you should calculate when planning to buy a new car. Look for the best options in your budget if you can bear all the expenses related to a new car. 

  • Plan for the largest possible cash down payment:

You can save hundreds of dollars if you make a large down payment when buying the car. Car loan’s interest rates will be pretty low, and monthly car loan payments will also be pretty low. So, start saving extra money at least six months before you decide to by a car. Thus, you will save a lot of money to make a big down payment. 

  • Check your FICO scores and credit reports:

Get your credit history from one of three major credit bureaus of the USA and check the whole report. Look for the details of previous auto loans and try to point out errors. Contact the credit bureau and request for corrections in order to improve your credit score. 

  • Prove you are a responsible person:

Every lender wants to know that you are a good risk or not. Clear all the pending bill payments and pay your bills on time for the next few months. It will establish a good credit history and the lender will learn that you are a responsible person, when it comes to making payments on time. 

Borrow like a responsible person

  • Get pre-approved for the loan:

You will be mentally and financially ready to buy a car if you get pre-approved for the car loan. Choose a moneylender who is offering car loan at the best rates and then meet the dealer. The money in your account will allow you to negotiate better and get the best deal on your favorite car. 

  • Look for the best car deal:

There is no lack of options in vehicles. Whether you want a hatchback, sedan, or SUV, consider all the popular car models in your budget. Go through customer reports, check dealer reviews and ratings, and then meet the dealer in person. Invest your money in a car that offers the best comfort, mileage, and requires deficient maintenance.  

  • Do not miss payment deadlines:

Do not delay the monthly payment because it will be recorded in your credit history. Contact the lender and discuss repossession options if you cannot pay back your car loan. The lender will still ask you to pay the difference between that vehicle’s sale price and the remaining balance of the auto loan. 

  • Think about refinancing your car:

Refinancing is always a lucrative solution to get rid of high-interest rates and expensive monthly payment. You should assess the refinance options. Many lenders will agree to refinance your car if you have been making car loan’s monthly payment on time. They will check your credit history, the way you have been paying your bills, the recent financial disputes, and some other important things to evaluate your capability of paying the loan. 

How to Pay Off a Car Loan Faster?

It seems like a big aid when you get a car loan to buy your favorite car. Things go pretty well until you realize that you will be paying a lot more than you have borrowed. You can pay off that loan earlier to increase your credit ratings and save money on loan interest. 

Although most of the money lenders expect you to provide a monthly payment, they also offer ways of paying off the loan earlier. Learn what steps you must take to pay off your car loan faster. 

Assess the current balance and payoff penalties

  • Know what your car loan’s exact payoff amount is

You can prepare better pay off plans of the car loan if you know the current balance. Check your account summary to find these details if you use internet banking service. You can also check the monthly statement to reveal the details. 

  • Get a copy of the loan agreement:

Contact the lender and ask him to email the loan agreement. You can also access a copy of that agreement by logging in to the lender’s website. Check the terms and conditions to reveal penalties associated with paying off the loan earlier. 

  • Assess how much money you can save

Use online loan payoff calculators to assess the amount of money you can save by paying off the car loan. Many websites offer this calculator, which calculates monthly payment, loan’s interest rate, and payoff amount to reveal how much you can save. 

  • Discuss your demands with an expert

Meet your loan adviser and reveal your loan payoff plans. He will assess everything and then offer the best suggestion to pay off the loan and save extra money. 

Paying down and principal:

·        Can you make additional payments to the principal balance?

Know whether you are paying fixed interest on your car loan or not. You can make additional payments if the interest rate is fixed. Some lenders charge interest on each monthly payment. Contact the lender to learn whether or not you can make additional payments and also know how much interest you will be paying. 

  • Make a separate payment for the principal amount

You can make other payment online or by check. Continue paying regular car loan payment separately by writing “principal-only” on the check. Your lender will learn that it is the monthly payment of the principal amount. 

  • Pay biweekly

You can make that monthly loan payment two times in a month. Pay it biweekly, and you will make 26 payments throughout a year. It will help you in reducing the balance amount much faster. 

Find additional sources of revenue

  • Use extra earnings to pay off car loan

Use your cash gifts, tax refunds, and bonuses from your job to pay off your car loan. It will help you in reducing loaned amount faster. 

  • Make more money

Use your free time to make extra money. Whatever skills you possess, use those skills to do additional work, and earn more than your monthly income. You will save a lot more to pay off your car loan earlier. 

  • Apply the snowball technique

Suppose your credit card bill is completely paid off, you will be saving extra money every month because no credit card payment is left to pay. Use that money to pay off your car loan faster.  

  • Prepare a budget to reduce additional expenses:

Note down where your money goes every month. Think about everything you do every month and how you spend your money. You will find many things which you do not need. Stop using those things and save that money to make additional loan payments every month. 

You can also plan to buy a new car if you pay off the current car loan faster. So, try the suggested tactics to get rid of your car loan quickly.

How to Get a Car Loan with No Credit or Bad Credit?

Bad credit or no credit makes it quite difficult to get financial aid from banks and other financial support providing agencies. Getting a car loan in such a situation might seem impossible. Even though you find a lender, the interest rates and monthly payments will be quite high. You can turn things in your favor by following these guidelines:

Getting a car loan with bad credit

  • Get your credit report

It is essential to check the credit report before applying for a loan. It will reveal where you stand, and you can also find mistakes in that report for correction. You can annually access one credit report for free from one of three major credit agencies. 

  • Pay your pending bills

Pending payments can affect your chances of securing a loan with low-interest rates. Therefore, you should pay all the pending bills before you go shopping for the loan. Take six months to clear all your bills to assure the lender that you are a good risk.

  • Prefer your bank

Your bank can offer you a car loan, even if you have bad credit. Contact the lender and learn how they can support you. Meet private dealers and car financing services only when your bank does not offer the necessary support. 

  • Contact your insurance company

Your insurance company may also offer financing service. Contact the insurer to know how he can help you in financing your new car. 

  • Check different products

This fact might overwhelm some people that they can get a car loan with bad credit. Do not choose the first offer you get. Do some research to compare different products and then select the best one. 

  • Carefully read the terms

You should not get impressed by low monthly payments. It does not mean that you are paying less because you will pay a lot more if it takes a long time to pay the loan back. 

  • Refinance your car

Drive that car for a year and then try to refinance it. Calculate the principal amount and interest you can pay at once and take a new loan to pay off that money. The new lender might offer the loan at lower interest rates and with reasonable terms. 

Getting a car loan when you do not have any credit

  • Open a bank account

Lenders like to check credit history before offering loans. Hence you have no credit, and you should first open a bank account. It is the first step towards building credit, and banks do not require customers to have any prior credit history to open an account. 

  • Increase your savings

Whatever your monthly income is, save some money in your bank account to make a good down payment. You can easily get a good car loan if you can make a large down payment. So, save enough money to pay 10-20% of the total cost of the car as a down payment. 

  • Prepare necessary documents

The lender will ask you to provide proof of employment, recent bank statements, details of paid bills, etc. Complete all the required paperwork before you apply for the loan. 

  • Find a cosigner

Find a good cosigner with great credit history. He will ensure the lender that they can trust you for all the money they are lending you. 

  • Contact your bank for the loan

Do not contact other lenders without discussing your needs with your bank. They can provide a good loan if your recent credit history is good. They will treat you as a favorable customer for lending money if you have maintained an exceptional credit history till the date. 

Take the support of the car dealership if your bank is not offering a beneficial solution for your financial demands.