Over the last few decades, getting car loans has been dictated by many false assumptions. And if you have probably tried borrowing a debt to repair your car, chances are that you have come across the term Compass Auto Loan.
In this article, we are going to debunk the myths surrounding this financing method and give you a blueprint on how to go about it.
What Exactly is a BBVA Auto Loan?
A BBVA auto debt acts as a reliable source of finance to help car owners pay off any repair bills once they visit a repair shop. Coupled with the BBVA auto loan, the line of credit extends arms and helps you acquire that family can you always dreamt of without having to break a bank.
Simply put, this debt ensures your car is properly maintained as well as turning potential dreams of owning a car into reality.
As an added bonus, most lenders allow you to apply online so it’s a matter of hitting the button and sitting tight to wait for the approval.
Why You Need Auto Loan
We all know that the journey of purchasing the first car isn’t the easiest one since a lot goes into the process of buying a car. Many would prefer paying cash for a car. If you feel like you can afford to pay a small interest, then you can opt for an auto loan.
Whether you are looking to repair or buy a new car, there is a likelihood that you are considering financing. But before the dealership consents the paper signing, you need to know who will finance the credit.
Many loan borrowers end up facing missing out on loans due to bad credit scores and bad debts. This is partially driven by the fact that they don’t have prior knowledge of the loan requirements.
Time is money. A BBVA loan offers you potential same-day funding, helping you avert the unnecessary hassle of dealing with conventional banks.
Indicators That you can Afford a BBVA Auto Loan
Well, there are a couple of indicators used by the BBVA Compass car loan lenders to determine whether you actually meet the borrowing threshold.
It all starts with the basics. Do you want to fix your old car or are you ready to buy a new one? Can your own finances get you where you want?
- An individual’s borrowing power determines how much money BBVA Compass will lend you and how much you can afford. If it becomes apparent that the repayment amounts are not significantly affecting your monthly income, then that’s an indicator that your financial position is sound.
- If you can afford to repay with the monthly disposable income, that’s another great indicator that you can qualify for the loan.
- Your debt to income ratio is another indicator. BBVA maintains that the amounts of debts you pay every month don’t exceed 39% of your monthly income. A ratio that exceeds 39% is considered a red flag.
Lender’s Hallmarks to Lookout For
- Lower Interest Rates
This may seem like a no-brainer suggestion but it’s important. Before settling for a particular lender, ensure that you go window shopping to determine the one with the best interest rates. Remember: the lower the rates, the faster the chances of you paying off the loan. Depending on the loan amount, most lenders will lend you at an APR rate of between 5.24% and 6.74%.
- Turnaround Time
The other thing to look out for when sourcing for a BBVA auto loan lender is the time it takes for your loan to be approved. Typically, most lenders will avail the funds within 24 hours or less even when you aren’t a member of the BBVA.
- Mode of Application
The multiplicity of application channels through which you can apply your loan is another important consideration. You should be able to apply for a loan via a computer sipping a cup of mocha.
Application Process and Requirements
The BBVA auto loan application is mainly done online through the respective lenders’ portals. However, for the loan to be approved, you must be able to provide the following.
Ø Live in any of the BBVA Compass’ auto loan serviced states.
Ø Be at least 18 years old.
Ø Be a US citizen or a permanent resident.
Your Responsibility as a Borrower
Having the BBVA auto loan may not necessarily affect your credit score. However, it’s your responsibility to manage the loan as it may have an impact in the long-run. Just like any other loan, it’s important to strictly commit to your monthly payments as late remission may erode your credit rating.
Dedicating a large sum of money to purchase a dream car can outright leave your savings account strained. A BBVA auto loan gives you the opportunity to buy a vehicle through affordable monthly payments. It also helps you gradually but perpetually boost your credit rating, provided your payments are on time. Plus, you get to increase your chances of buying a better vehicle which may deem too expensive to pay for in cash.