The first thing that you need to be aware of is that car dealerships are going to try to convince you to obtain car financing through them. They will tell you pretty much anything that you want to hear because they are trying to convince you to finance your car through them. The Finance Manager of a car dealership will try to convince you to go with their financing by telling you about special deals that they are offering or other so called advantages that they try to sell you on so you finance with them.

You cannot let this fool you, obtaining car financing through a car dealership is not usually your best option, especially for non secured loans. Car dealerships when they finance your car for you, rather than going elsewhere for the financing, make a large profit from your payments. They try to tell you that no matter how you pay for your car, even if you pay in cash, they will get the same amount of money from the sale; this is far from the truth. If the car dealership does in house financing they will make money from your car payments because of the interest that you are paying, and they get the money from the car itself.

Never finance your car through the dealership directly, unless you have shopped around at other financial institutions and can prove you are getting the best deal. What you want to do is choose your car financing institution and find a car dealership that will allow you to use your preferred choice.

Non secured loans on the other hand are loans that do not require any collateral and are usually the type of loan that is sought most by individuals. Income and credit worthiness are the two main things that lending institutions go by when deciding whether or not to grant a non secured loan to someone.

To obtain non secured loans the borrower must have a good credit score. The lending institution will check the borrower’s credit score either through Experian, Equifax, or Trans-union; these are the three major credit bureaus that are used by lenders.

Sometimes the lender will only check one of the credit bureaus and use that score to determine the borrower’s credit score and some other lenders will use all three credit bureaus scores, average them all out, and use this average credit score as the borrower’s credit score. Besides the borrower’s credit score the lender will also check the borrower’s payment history on other loans that they have obtained in the past such as credit cards, auto financing, etc.

Lots of late payments on a borrower’s credit report will reduce their chance of obtaining a non secured loan but a borrower should never think that just because they have been late a few times on payments that all is lost. Lending institutions want to give borrowers loans because that is how they make their money. They will work as hard as they can to approve someone for a loan but sometimes they just cannot do it because there is just too much risk that the borrower will not be able to pay back the non secured loan.