Cindy Del Rio, Negosentro | Do you need a set of wheels really bad, but you are scared you don’t qualify for an auto loan? Everyday people just like you get the green light for an auto loan, and so can you! Today, we will be discussing some ways that you can improve your chances of getting approved. So, if you are in the market to buy a new or used car, make sure to pay close attention to the information below.
Know Your Credit Score
Before you walk into a car dealership, make sure to check your credit score. Auto loans are often only given to those with good to fair credit. So, knowing where you stand is very important. You wouldn’t want to waste your time by going in to look at cars only to learn that your credit score is too low to even be considered. If you do find that you have poor credit, luckily, there are some things that you can do to change that. Paying your bills on time and keeping low credit card balances is a good place to start. For more tips on credit repair, please check out this link.
Figure Out How Much You Can Afford
Not everyone can afford to drive around in a Rolls-Royce, so learning what you can afford before going to the dealership is a good idea. Start by checking out how much debt you already owe and compare it to your monthly income. If there is any extra money left over, then you just might be able to afford to take out an auto loan. But don’t get too carried away, and limit your spending to what you know you can pay back. So many people get in trouble because they let their dreams get ahead of their bank accounts. If you have a difficult time with finances, you may want to talk to a CPA to help guide you in the right direction. Here are some tips that will help you find the right CPA for your needs.
Make a Large Down Payment
A great way to get a car loan even with not so perfect credit is by putting down a large down payment. If you can come up with at least 20% of the total value of the car, most dealerships are willing to work with you. This is a great way to also reduce your monthly payment which will keep more money in your pocket. Larger down payments are often known to bring down the interest rate on most car loans. Having a lower interest rate will allow you to save tons of money over the course of your auto loan.
These easy to follow tips will help you get approved for an auto loan. Remember that knowing your credit score before you get started is always a good idea. Even if you have bad credit, most dealers will work with you on a loan if you are willing to make a generous down payment.