If your current car is old and run down or is starting to cost more in repairs than it is worth, you may have decided that it is time to replace it. Because you want the vehicle you purchase to last you more than a few years, you may have decided to buy a new one but know you will need to apply for a loan to help with the purchase price.
If you have never applied for a car loan before, you may not know what to do when you start shopping around and getting information from different financial services. Below are a couple of things that you can do when contacting each service before applying for a new car loan.
1. Have Your Credit Score in Hand When You Speak with a Loan Service to Determine Your Eligibility and Possible Interest Rates
One thing you can do when shopping around for a new car loan that can help you receive the most accurate information possible while possibly speeding up the process is to have your credit score in hand before you start calling. When you first speak with a loan officer, let them know your credit score.
Once they have this information, they can run a preliminary screening to determine your eligibility for the loan without having to run your credit. They can also give you possible interest rates based on the score to give you an idea about what to expect.
2. Ask the Loan Officer If They Have Various Available Interest Rates That Are Affected by Your Preferred Monthly Payment
Once a loan service has given you a preliminary decision about your approval and given you information about interest rates, another thing that you can do is to ask them if they have various rates available based on your preferred monthly payment. Before you call, check your budget so you can determine what monthly payment range would work best for you.
Since some loan services may lower the interest rates depending on the amount of the down payment or a larger monthly payment, you may be able to save money. The loan officer can review your credit score, monthly payment, and desired down payment amount to give you a ballpark figure so you can decide whether to apply.
When shopping around for a loan to help you purchase a new car, try to obtain a copy of your credit score before you speak with each service to help them determine your eligibility and give you an idea about possible interest rates before you apply. You can also ask the loan officer if they adjust the interest rates according to your preferred monthly payment amount. For more information about eligibility requirements and the application process, contact a local business, like Premier Financial Credit Union.Share