If you are looking for a good deal on a great car, you need to be aware of the steps you need to take if you cannot afford to pay cash for your car and need a loan. Following these steps will allow you to get the best deal on the best loan for your needs.
Your Credit Score Should Be Above 650
A credit score below 650 is usually a non-starter for most lenders. You might get a loan, but you will probably pay a higher interest rate for that loan. A credit score of 650-700 will usually get you a loan at a reasonable interest rate. Anything higher than that and you can usually dictate the terms of your loan a little easier.
Put a down payment on the car to make it easier to get the loan. The less that you need financed, the better chance you have of getting your loan approved. This is even more true if you have a lower credit score and you might only get approved for half of what you would want to spend. Another advantage of lowering the amount you need financed is that it will have less effect on your debt-income ration, which can be a factor in lending no matter what your credit score is.
Consider A Co-Signer
If you can get someone with good credit to co-sign your loan, you can get approved for a loan much easier. This is because the lender will see that good credit history signing with you, and that person is also responsible for making payments if you do not pay.
Getting a loan for your car can be a tricky proposition, but you can take actions to make it easier to get approval. Know your credit score, reduce the amount you need financed and get a co-signer to make sure your loan can be approved.