Let’s face it, applying for an auto loan can be a nerve-wracking experience. You’re letting a complete stranger review your finances, and decide whether you can get the cash you need for purchasing a new car. Even if you are approved, you’ll be putting yourself in debt and having to pay it off for years to come.
It’s probably impossible to completely get rid of those butterflies that start fluttering in your stomach when you meet with an auto lending advisor to discuss financing. However, you can boost your confidence a lot when you know what to do when applying for an auto loan—and what NOT to do.
Auto loan DOs
DO check your credit score
Most banks consider your credit score to be the first, best and often only factor in whether they should give you an auto loan. While credit unions like First Alliance will look at the whole of your personal finances, the fact is that a higher credit score is a huge advantage when applying for an auto loan. It improves your chances of getting your loan application approved and can even prevent you from paying higher rates of interest.
continue reading »