PRLog - July 2, 2010 - AMERICAN CANYON, Calif. -- Car loans acceleration works on the basis that if an auto loan is split in two payments i.e. pay two installments in a month, the interest gets reduced. However this method is being promoted more on websites online. In this method one writes two checks to the auto loan lenders and by paying more the interest that is computed daily gets reduced as the balance faster. So that would also mean no penalty on pre-payment is being imposed.
Car Loan Acceleration to Help Save Money
One needs to be cautious before exercising these options since there have been cases where this may not actually deliver savings. Acceleration helps when one is paying off high interest debts as credit card debts. So accelerating cheaper debts as low rate car loans may not be the best strategies to save money.
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Such an approach is more commonly used in mortgage lending. This is also not an advisable method if one is building contingency fund. So issues as credit scores, interest and contingency planning are some of the aspects that have to be weighed against the savings as well. Accelerating hence doesn’t work favorably for cheaper debts and has no change in the APR.
One has also to ensure that the both the payments get reflected in the payments and late fees etc are not unnecessarily applied to the account. Basically this method needs more attention and the scope of mistakes is increased.
But still if one is looking to options to save money and evaluate benefits on no credit check car loan quotes there are several ways as paying one month ahead of schedule or a good credit score or look at 0% financing deals available in the market, or go in for a longer term loan.
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Getting savings on car loans needs proper understanding and is more of a tailor made solution and not a one size fits all scenarios. Hence if you are thinking of accelerating utilize professional services.
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