When you need a new car but don’t have the cash to pay for it upfront, you have two primary financing options: a car loan or a line of credit. A line of credit is the traditional way to go, but it isn’t the best choice for most borrowers. More than ever, people are opting for car loans because of the sheer number of benefits it provides. Below we look at the perks of choosing a car loan vs. a line of credit.
9 Reasons So Many People Are Turning to a Car Loan vs. a Line of Credit
When you need a new vehicle, it’s easy to stick with the road most traveled. Often a line of credit is what most people are familiar with. Shoppers in-the-know are now switching to car loans to finance their new vehicle, paving the way for everyone else to follow suit. Sometimes taking the road less traveled makes all the difference.
1. Fast and Free Application Process
Shopping for a car is time-consuming enough that you need not add a lengthy application process to the mix. Add to that the fact that many lenders charge a fee just for applying. With a car loan, you can safely and easily apply online for the fastest application process imaginable.
With Ride Approval, we never charge a fee for your auto loan application. It takes only three minutes to fill out the form and submit. You don’t even need to enter a SIN number to apply. Fill out your application now and get back on the road fast.
2. Expedited Application Approval
The last thing you need when shopping for a car is to wait for weeks to find the money you need. Many traditional lenders leave you in the lurch as they leisurely mull over your application, not considering how badly you need new wheels. Even if you are approved for a line of credit after a long waiting period, the process then moves into an undefined negotiation period.
Ride Approval understands that there’s nothing worse than waiting to see if the money will come through. We’re on your side. We process your application at lightning-fast speeds for the peace of mind you need when shopping for a new vehicle. Usually, you’ll know the status of your car loan application within hours.
3. High Approval Rate
There’s a significant divide between the approval rates for a car loan vs. a line of credit. A line of credit is a private account of funds that you can withdraw from as long as you stay within the pre-established agreement bounds. Credit cards are an excellent example of this type of lending. The problem with using a line of credit for your automobile purchase is that most lenders are picky about who they let into their line of credit club.
Many traditional financial lenders won’t give money to people with no or poor credit scores. Sometimes even a decent credit score isn’t enough. When all doors slam shut for you during your quest to borrow, a car loan is a wide-open gate to a brighter future. We approve most applications. You are pre-approved for a car loan if you’ve made $1800 a month or more at your job for three months.
4. All Credit Scores Welcome
Do you know your credit score? Many people don’t until their car breaks down. Your credit score goes a long way in determining your eligibility for a line of credit. Traditional lenders see you as a number instead of a person in need of help. What kind of business philosophy is that?
With Ride Approval, you are a valued client no matter which number appears beside your name. We serve clients with all credit scores, so you can focus on getting back to your routine instead of bureaucracy.
5. No Money Down
Have you found yourself in a bind and don’t have the 10% to 20% required for the down payment on your new vehicle? The rigid rules of banks and credit lenders aren’t negotiable. They expect you to either pay up or back down from your mission to get back on the road.
Sometimes rules are made to be broken; that’s why Ride Approval doesn’t require you to put anything down before driving away in your new car. We know that you have things to do today that can’t be put off until tomorrow. We’re on your side with 0% upfront standards.
6. Large Selection of Vehicles
Many people are switching to car loans instead of a line of credit because purchasing options have expanded. In the past, many people borrowed from a line of credit because they wanted the freedom to buy the car they wanted instead of those available. Times have changed, and now you have more options than ever to find the vehicle of your dreams.
Ride Approval works with dealerships throughout Canada to secure financing for all makes and models. We can recommend one of our partnership dealers to help you in your search. You can also find a vehicle on your own terms. Just let us know, and we’ll work with you to secure that specific vehicle.
7. Auto Loans Rebuild Credit
You need credit to navigate the modern world. Your credit history dictates the access you get to a variety of essential modern goods. If you’ve missed payments, defaulted on loans, or experienced repossession, your credit score suffers. However, credit isn’t static; there are ways to elevate your numbers.
If you are like many people in this position, you want to increase those financial history digits but keep running into brick walls. Without credit or with a low credit score, there aren’t many ways to bring your score up. Eligibility for a line of credit may be years away. Don’t worry; all is not lost. A high-interest auto loan is one of the best ways to build or rebuild your credit score, and you get a car out of the deal. All you have to do is make your payments on time, and your credit score improves.
8. Incredible Rates
When dealing with a private lender to secure a line of credit, they only give you access to one standard in-house rate. Traditional lenders know that if you only have one rate option, you’re more likely to take it no matter what other offers are out there. Many of our clients switch to an auto loan because they’ve learned from their mistakes.
Ride Approval works with a vast network of lenders to find the best possible rate terms for you. We shop around and invest time in finding you fair and honest rates for the vehicle you want and need.
9. Personalized Service
Have you stopped to consider the sizeable overhead credit lenders and large corporate banks have to supply you with the funds you need? Their clients end up paying for that in the long run. Not to mention, those financial institutions know nothing about the average person’s needs.
Many people are now switching to Ride Approval because we understand where you are coming from. We started in Edmonton, Alberta, after years of working in vehicle financing. Our mission is to find the best, simplest way to get you the funding you need.
Apply for a Car Loan Now
When you need a new car, there isn’t much time to spare. Get in touch with us today to investigate your options for a car loan vs. a line of credit. The application process takes under five minutes, and we approve 98% of those who apply. Contact Ride Approval in Edmonton, Alberta, to get yourself back in the driver’s seat.