If you want to buy a car but don't have quite enough saved up for the model that catches your eye, you can get financial assistance with an auto loan.
Although you may be excited by auto dealers and banks that advertise no-money-down and zero interest financing options, you have to think strategically when applying for loans. If you don't, you may not be able to enjoy your new ride as much due to a lot of additional debt.
Here are some tips to help you get an affordable auto loan:
Check your credit
Like other loans, we will examine your creditworthiness prior to granting or denying you a loan. Despite the fact that the funds in your checking account suggest your ability to repay, we need to see a history of on-time payments and a sizeable amount of available credit.
Order a copy of your credit report, which can be seen for free once a year from each of the three major credit reporting agencies: Experian, Equifax and TransUnion. Review it and look for any errors that could mar your apparent creditworthiness. Contact the report's generator to have those errors removed before applying for a loan. You should also view your credit score, which has to be ordered separately for a fee.
If you're not satisfied with your credit standing, pay off outstanding debts to increase your credit utilization ratio and avoid opening new accounts or closing existing ones. Although fixing your credit history and score can push back your car-buying dreams, doing so can help you get a better auto loan.
If you're looking to save time while applying for financing, use our convenient online loan application. Within a few minutes, you can submit your materials at home, and we can issue a preapproval within a short time. Plus, we offer same- and next-day closing to get you in your new vehicle and on the road right away. You can also get preapproved for financing before you head to the dealership to have an better idea of which cars fit your budget.
Know what you can afford
Financing is available, but you may have to provide a down payment. Additionally, you need to understand what you can pay each month for your auto loan.
Check your savings account to see how much money you've put aside to purchase the car of your dreams. Review a few web resources to get an idea of how much the car costs to understand how much you need to borrow and what you can pay out of pocket.
Also, create a budget that includes your income and monthly expenses. With this tool, you can determine whether you can make regular payments for the loan you need or if you should borrow less.
For more information about smart ways to manage your finances, contact Landmark Bank.
Back to Blog