If you are about ready to try to purchase a new car, you will want to make sure that you are as prepared as possible for the loan application process. The more prepared you are, the more likely it is that you will get approved for the car that you really want.
Double Check Your Credit Reports
Sure, the dealership will have people to pull your credit reports for auto dealers in order to determine whether you qualify for a loan, but you do not want to wait for that. The better option would be to pull your credit report from all of the credit reporting agencies. This is the best thing to do because you may find that not everything is reported the same on each one of the reports. Also, you will want to make sure that you are reviewing your credit reports as soon as possible. This way, you will have plenty of time to dispute any errors, which will ensure that the errors will be deleted and your credit score will be adjusted accordingly.
Starting Looking For A Co-Signer
While you might not want to have a co-signer, it might be needed. Instead of waiting for the auto loan company to tell you that you need a co-signer, you might want to start looking for one now. This way, you will already know who to call in the event you do need one, which means that there will not be any wasted time. Also, you may later have the option to refinance your auto loan in order to have the co-signer's name removed from the loan. You should have an easy time doing that after you have increased your credit score with timely payments.
Improve Your Debt-To-Income Ratio
You will have a better chance at getting approved for the auto loan if you have more income than debt. In fact, the more extra money you have each month, the better your credit report will look. Therefore, not only will you want to pay down some of your debts, but you will want to refrain from adding any new debt. If you can, you might want to try to increase your income if possible, such as getting a second job or taking on some overtime at work.
With all of those tips in mind, you should have an easy time increasing your odds of getting approved for the loan you need.
Share29 March 2016
A few months ago, I realized that I was flat broke. I didn't have the money to pay my rent, and I knew that my parents didn't have a dime to lend me. I was in a bad situation, so I decided to start shopping around for a financial services company who might be able to issue me a short-term loan. To my surprise, I was able to find an amazing business to work with that offered low interest rates and acceptable policies. This blog is for anyone out there who has been in a similar situation, and who needs to understand written contracts a little better.
