For the families that have more than one vehicle, it is logical to get your car loans consolidated. Consolidation of car loans is a process through which you can combine all your vehicle loans into one payment. Car loan consolidation can be very beneficial to you if:
- You want a lower rate of interest
- You have to pay several loan installments in one month
- You want to cut down your monthly payment
Requirements for loan consolidation
- Income proof- Most of the lenders seek a job of at least 6 months. However, long term employment would increase your credit worth. Gather at least six months pay statements to present for the verification of your job and income.
- Insurance- Make sure that you all the vehicles that you want to cover under the consolidated loan are insured. Some insurance companies also offer discount on multiple vehicles.
- Residence proof- A stable residency will increase your credit worth. You should be able to put forward at least six months utility bills for your address and a proof of identity.
- Credit history - It is important that you have knowledge about your credit rating. Most of the time, you can be rejected for a car loan only because of a poor credit history. It’s not that you can’t consolidate your loans without a good credit history, but do not expect discounted rates of interest.
Benefits of consolidating car loans
- A person who is paying large monthly payments can benefit from loan consolidation by increasing the time period of the loan. However, increased time period means more interest payment at the end of the day.
- For the people who have multiple loans, consolidation can help to keep a record of the due monthly installments and pay them in time.
As a concluding point, car loan consolidation depends upon the situation of each and every borrower. Those who are already laden with debt should think before opting for consolidation.
To obtain cheap and secured loans easily and quickly, consider Greater Central Texas Federal Credit Union only. For any assistance, call us at 254-690-2274.
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