You hear about your buddies getting a guaranteed auto loan and that never seems to happen to you. So when you find it practically impossible to obtain a car loan you, wouldn’t you love to change that around? Have you been aggravated when you do not get enough cash for your needs? And then we come back to our first statement of feeling irritated and even embarrassed when trying to get an auto loan.
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Even though getting an auto loan often feels like an uphill track, but when you know a few tricks of the trade, it might not be as hard as before. Here is way to go along with the flow and apply some of these suggestions to hedge your position in finding a guaranteed auto loan.
Credit scores: This is the very first thing that you MUST do before you begin seeking that car loan. You have to know where you stand in regards to your credit scores. In addition, ensure that you fully understand the information you find on your credit report. Do not feel ashamed if your credit score is presently poor and don’t try to ignore them or cover them up. You still have the right to know what all the information means on your report and those professionals are required to explain them to you – you are entitled to that. Always face up the facts of that report – even if it is not very desirable. Remember that all of us have made bad decisions.
Applications: When you begin filling out those loan applications, it will require lots of formalities and lots of documentation work. So be sure that you get your financial records ready ahead of time. It will seem like a big hassle, so try not to lose your patience doing this. Take your time and work through the process one step at a time – you must be complete and thorough. You should be aware, however, that online applications tend to be a lot easier than traditional ones. So spend some time browsing the Internet and come up with a list of lenders that look the most promising.
Security: One huge advantage you can give yourself in seeking a guaranteed auto loan is by providing some kind of additional collateral. Indicate to the lender that you own assets that you are willing to pony up in support of the car loan you are seeking. This could be ownership of a boat, a farm, a second car, rental property, and so forth.
Income: Show them how stable your source of income has been. The longer you have been working with your present employer, the better. Also, the higher your level of income, the better. And then we will mention that having additional sources of income is good too – as long as you can prove their existence.
Car Choice: Auto loans are often mostly driven by the type of car you are trying to buy. Choosing models that are known to hold their value is always a very good thing. Putting up a trade-in car that has a free title will help you tremendously – especially if you are putting up a down payment as well.
Down Payment: We just mentioned this in the previous paragraph, but down payments are extremely important in the car loan application process. If you put up a big down payment, it does many things for you, Number one is that it lowers the loan balance and allow the value of the car to possibly exceed the value of the loan – which reduces the overall risk of the loan.
Secondly, it shows that you have some skin in the game and are serious about making good on the loan. And it shows you are willing to assume more of the risk – banks just love that!
Finally, it shows the loan officers that anyone who has been financially savvy enough to save up a down payment, would most likely be willing to pay off his or her debts.
So when you seek that guaranteed auto loan, make sure that you protect yourself and learn more about your rights BEFORE committing to one.
Read more here: https://www.consumer.ftc.gov/topics/credit-and-loans