Personal Loans vs. Car Loans: How They Differ

For Housing Counselors in the State of Washington, please email us at the following link in regards to your customers loan modification status: If you need help, call 13 33 For more information, download a comprehensive review of how daily simple interest works. Ready to get started? Why choose a secured personal loan? It can offer an alternative to credit cards by giving you a predictable and fixed repayment plan.

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A secured personal loan lets you borrow money against the value of an asset, such as a car or savings. Also known as collateral loans, they may carry lower rates, but you also risk losing your. You can get a secured personal loan from Car Capital Financial even if you have terrible credit, filed for bankruptcy, or suffered repossessions. Keep in mind, with a secured loan, the lender can take possession of the collateral if you don't repay the loan as agreed. Types of secured loans and lines of credit Here are a few personal assets that can help you secure a loan.

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Retrieve application Retrieve application Apply now Apply now. Why choose a secured personal loan? Get a lower interest rate By offering your car as security for the loan, you can access a lower rate than our unsecured personal loan.

Preferred repayment frequency Choose to make weekly, fortnightly or monthly repayments to suit when you get paid. Choose the loan type to suit you Choose between a fixed rate, which gives you set repayments for the life of the loan, or a variable rate which allows you more flexibility. Internet banking access Manage your loan and track your repayments online or through your mobile banking app. Fixed rate years flexible loan term.

Set repayments for simpler budgeting. Variable rate years flexible loan term. Pay your loan off earlier with fewer fees. Is your car eligible as security? The car you offer as security for the loan must be: If the car will be registered under two names, the loan will require a joint application.

Excludes all government charges such as stamp duty, search fees, fees to register security interest with the Personal Property Securities Register. Fees are subject to change.

Terms and conditions General details of our personal loan products. Fees and charges All costs for specific personal loan services and accounts. How to apply for a loan. Apply online in 10 minutes — 5 minutes for existing customers — depending on your internet connection. Once your application has been approved, visit a branch with proof of comprehensive insurance to review and accept the contract.

From debt consolidation to home improvements to vacations, you can plan for both the expected and unexpected. Your scheduled payments lower your loan balance until the loan is paid in full. It can offer an alternative to credit cards by giving you a predictable and fixed repayment plan. And it may even help improve your credit if you pay on time. Tell us some of your personal, employment and financial information and get a quick decision on your loan request.

You may be offered a secured or unsecured loan. Your terms vary based on personal information like credit history, income, expenses, debts and available collateral. This example is based on an average customer with good credit. Get an idea of estimated monthly payments for different loan amounts with our personal loan calculator 3. These customer testimonials reflect individuals' personal experiences, so you may not have the same results.

For more information, please call or find a branch. We may ask for additional items based upon your unique situation. Start your loan application today. On average, from the start of the application to the receiving of funds, the process takes about one day. The amount of time may vary, however, based on what time you submit your application, the number of documents required in order to approve your application, and how long it takes to receive those documents, among other factors.

Average lengths of time for the online application process may vary depending on your circumstances:. A precomputed loan is a loan where the interest for the term is calculated when the loan is made. The interest is included in the account balance. Because interest is calculated when the loan is made and not as payments are made, the interest is "precomputed". A precomputed loan is made up of the amount borrowed also called the amount financed , plus precomputed interest, plus any prepaid finance charges.

Prepaid finance charges are loan fees charged in addition to interest. Examples include an origination fee and an administrative fee. The amount financed and loan fees are called the "principal". As payments are received, the account balance goes down by the amount of the payment. Payments are not applied separately to principal and interest because the account balance already includes both principal and interest. If a precomputed loan is paid off early, all of the precomputed interest may not have been "earned".

The earned interest will be calculated based on how long it took to pay off the loan. The unearned interest is then refunded by subtracting it from the account balance. The payoff amount is the remaining account balance plus any unpaid fees and charges, like late charges.

There are different methods for calculating the interest refund. These include the Rule of 78s or the actuarial method. Prepaid finance charges are usually considered earned at the time of the loan, so there is no refund if the loan is paid off early. Refer to your loan agreement to see the method for calculating the refund and if you are entitled to a refund of prepaid finance charges.

Interest on a daily simple interest loan is calculated by using the daily simple interest method. This means that interest accrues on a daily basis on the amount of the loan current outstanding principal balance from the date the interest charges begin until you repay the loan. The daily simple interest method counts the number of days between the date your last payment is received and the date your current payment is received.

To avoid paying additional interest, you should regularly and consistently make your standard monthly payment amount on or before your payment due date.