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The Pros And Cons Of Different Auto Loans

A quick look and the pros and cons of each type of auto loan lender.

When you're planning to buy a car, the different types of loan providers can be a bit overwhelming. But we've got a look at some of the pros and cons of each type.

Banks offer some state-of-the-art websites and apps to monitor your loan. But they're loans are often conservative and aren't friendly to those with poor credit.

Credit unions function similarly to banks but often have lower rates. They also are better represented in low-income communities. However, they're often linked to certain companies and groups, which can limit who can get a loan through them. They're also a lot smaller than most banks. The average credit union only has 3 branches.

Dealerships can be easy because you're already there to buy your car. They can also provide lower rates for those with good credit and work with people with poorer credit. But they often mark up rates so that they can make their profit.

What about those online lenders? They can help you access a bunch of lenders quickly and without damaging your credit too much. But, you'll need to look up every lender with the Better Business Bureau before you even apply. It can also be hard to get someone on the phone to help you. And finally you could wind up drowning in a bunch of calls and emails from potential lenders.

These are just some of the pros and cons for each type of auto loan. Consider what's best for your situation before you drive off.

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