When looking to buy a car come up the first thing that people should have in mind is to apply for a pre-approved loan. The process alone can take some time, however, it’s easier than you think to get pre-approved. There are a few steps to take before getting a car loan. We’re going to go through a few things you should know before you apply.
Revise your credit
As advised by many, before you shop for a car loan the first thing you need to do is revise your credit. Checking your credit report is essential because the better your credit the cheaper it is to borrow money. Knowing this helps you know and secure your financing. Keeping your credit at a higher score may entitle you to lower loan interest rates. However, if your score is low and that concerns you there’s nothing to fret about, a lower score, almost never, prevents you from receiving a loan. However, if your score is indeed low, that could mean that you will have to pay a higher interest rate. Knowing this, and if you want to pay less for a loan, you can stop in your tracks and take the time to better your credit before you apply for any type of financial loan.
If you don’t know how to revise or where to start looking to revise your credit score, you can request a credit report with one of the three credit bureaus in the United States: Equifax, Experian, and Transunion. All of these bureaus charge a fee. You are, however, entitled to one free report annually.
Once you have your hands on your credit score or your credit report and have read the fine print you will want to check for errors. The credit unions have options to dispute any mistakes that you believe are marked on your credit. However, you do have to have proof about the things you believe or false. once you have corrected these mistakes, the information you have provided will be sent and you will be notified within 30 days if such mistakes were corrected.
However, if your credit report does prove that you are indeed with debt you’re going to have to pay them off. Payments such as student loans, electric bills, Gas, phone, water bills, as well as any other type of credit fee will end up here in your credit score. Paying off any debts will improve your credit and as such you will attract more loan lenders.
Have a stable income
Sadly a stable income is not as easy as it sounds. This is especially true for college graduates who take light to loan applicants. If you have proof that you have a stable passive income, lenders will be willing to let you borrow money. Proving that you have had a stable income for the last six months will almost always guarantee a loan, as long as you have all the documentation in order.
Limit the time you apply for a loan
There are some tricks and life hacks that actually do exist. So when you’re trying out for a loan the best thing to do is do it quickly. This goes to say because every time you apply for a loan your credit score goes down. Making it slightly more difficult to get top to top of the line loans. However, getting all your applications done and ready and doing things quickly, within approximately two weeks time, all the inquiries you’ve filled only count as one.
With low credit usually loaners will ask for a 10% down payment. Although it is also possible to turn in cars that you own as a sort of exchange, this is not always the case though, so that is something to keep in mind. The more money you present to the lenders, the more likely users with low credit will be approved for a car loan.
Apply with online lenders
Applying with online lenders with providers such as JSC Federal Credit Union, along with other financial institutions car financers often partner with specific dealers on certain cars. Applying online has certain advantages how so? When applying online usually financial institutions compete to win over customers. This results in better competitive rates.
Best auto loan rates Houston, luckily applicants here in Huston have the opportunity to go on and apply with JSC FCU, the most accountable and trusted credit lenders in Huston Tx.