In many cities and states, having a car is a necessity. If you need to have transportation and don't quite have the funds for one, you may be considering taking out an auto loan. Although auto loans do work for receiving a vehicle, an installment loan can be an even better product. Personal installment loans will allow you to purchase anything you would like, including a car. If you are interested in getting a car, here are three reasons you should pick a signature loan over an auto loan.
No repossession issues
If you need to have your transportation permanently, this means that you need to mitigate the risk of having your car taken back or repossessed. If you are late on an auto loan at any time, it is possible for your lender to send your car into repossession and take back the vehicle. If you get a personal installment loan, rather than an auto loan, you will not have to worry about repossession. If you have issues, you can speak directly with your lender about making payment arrangements without your car being a threat.
You can purchase the car of your desires
If you get an auto loan, you are likely going to have to work with the auto lots that the lender will approve. With an installment loan that is taken out as a personal loan, this is no longer an issue. This will allow you to take out a small installment loan and purchase a privately owned vehicle that you may find to be a better deal. It will also allow you to purchase a custom made car without the issues of finding an approved dealer.
Turn the installment loan into another product
Depending on the bank that you use, if you have an installment loan that you have paid back, some will turn the loan into a line of credit or a credit card. Whether the bank will be able to transfer your loan into a line of credit or a credit card will depend on the institution and the products that they have available. If your lender offers this service, ask if your installment loan can be translated into a new product after you have adequately satisfied the terms of the loan. This can continue to help increase your credit score for long after your installment loan has been paid off. This product can help you build credit and maintain credit at the same time.