Tips to Manage an Auto Loan
Buying a car is a significant milestone that can be both exhilarating and nerve-wracking. At Taz Loans, we want to take the latter out of the equation. We strive to provide accessible, transparent, and versatile loan solutions to help you own your dream car faster. Managing a car loan can seem stressful, but we have some tips and tricks to help you better handle it. Keep reading to learn more!
Create a Budget
Budgeting is an excellent way to keep up with expenses and other financial responsibilities. Keeping a monthly budget detailing all your expenditures is a great way to save money and stay up to date with necessary payments. Ideally, your auto loan should only take up about 8% of your monthly income.
Set Up Auto-Pay
Setting up auto-pay with your lender is an excellent option if you are looking for a stress-free way to pay your auto loan every month. Auto-pay is a payment schedule set in place by your financial institution to automatically send payments from your account to the lender. This process will ensure that you never have late or missed payments.
Pay More than the Minimum
Following our previous tip and budgeting your monthly expenses should save you enough to put more towards your monthly loan payments. There is no pre-payment penalty on simple-interest loans, meaning that you can always pay more than your minimum amount to help you pay off your loan sooner.
Refinance Your Loan
If you began financing with low credit, bad credit, or no credit, you might have a loan agreement with high-interest rates. During the first few months of on-time repayments towards your loan, your credit score should’ve gone up. This means that you are more likely to qualify for a better financing plan with lower interest rates. This lower rate will make your monthly payments more manageable and lead to you paying off your loan faster. Contact us to learn more about refinancing and other loan management tips!