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Growing in popularity are Web sites that allow you to shop for the best car loan rates, submit an application and receive approval, generally within one business day. How long it takes to actually get the money in hand varies from lender to lender, though some can deliver checks the day following approval.
Taking the online route can also save money. "When we recently
surveyed online sources, we found that you could get auto loans online at rates of 7% to 8% at a time when the average car loan rate was 8.6%," says Brian O'Connor, manager editor of www.bankrate.com, a consumer-oriented site that provides free comparative interest rate information for a wide range of loans. While the Internet provides a convenient and time-saving tool for one-stop auto loan shopping, he cautions that consumers should not get too caught up in its immediacy. "Before you click a button to select a lender, see if your credit union or bank can beat the best rate you find online," O'Connor adds.
Among the most popular online auto loan sources are autobytel.com, CarPoint, CarFinance.com, and autoweb.com. If you are a member of the American Automobile Association, be sure to check www.financial.aaa.com to see if discounted rates are available for members in your area.
OTHER LOANS
Personal loans and credit cards generally are granted based on your credit history and the amount to be borrowed typically is significantly less than home or auto loans, so the approval process tends to be swift--within minutes of application for some credit cards such as
First USA's e-cardvisa.
Sites such as LendingTree and E-LOAN offer one-stop shopping and online applications for a wide range of financing, including credit cards, debt consolidation and personal loans. Lenders themselves--especially large national banks--also offer online applications at their Web sites. A recent bankrate.com survey found 297 different online card offers from 59 issuers. Some provide special conveniences for online customers. For instance, at www.NextCard.com, Heritage Bank of Commerce of San Jose offers online transfer of balances from other credit cards to NextCard, which eliminates time-consuming paperwork. You can find a good overview of the best deals available in credit cards at www.cardweb.com.
Finally, if you're in the market for student loans, check out salliemae.com, which offers helpful information on college loans plus an online loan application which will trigger a follow-up call from a representative of the financial service corporation that funds 40% of all insured student loans.
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