Purchasing a new car can be a major investment for a family, and it is important that you get the best deal possible. No one should head to a dealership without first spending some time learning about their credit score and the credit approval process. Here are a few tips you can use to make sure that your loan is approved as quickly as possible with no hidden fees or add-ons.
Contact All Three Credit Bureaus
Almost all dealerships, banks, and loan companies use the same three bureaus to determine an individual's average credit score. Before speaking with a salesperson, you should first contact Equifax, Experian, and TransUnion to get a better idea of your credit score. Simply showing up with a recent copy of your credit history will help you make a good first impression with a loan officer.
Tackle Some of Your Outstanding Debt
Even with quite a bit of debt in your name, you can still be approved for a loan. When the agent is looking over your credit history, they should be able to see clear examples of you trying to work on your current debt. Making a few extra payments on a student loan or completely paying off an old credit card could increase your credit score by quite a bit.
Don't Change Jobs
Many financial experts suggest that you stay at your current job for at least six months before applying for any loans. Taking a new job with a higher salary or better benefits might help you in the long run, but it doesn't always look good on your credit history. Some companies, like Leopardi Auto Sales, know how important it is to check your credit history when buying a car. If you plan on changing careers or moving to a new company, then you should hold off on buying a car for at least a few months.
Save for a Larger Down Payment
When you are able to offer a larger down payment, it will show that you are willing to put quite a bit of your own cash on the line. While there is no set amount that you must save up, you should try to offer at least 10 percent of the car's total value. Having a larger down payment will also lower your monthly payments and interest rates.
Once you have carried out these few steps, you must continue to keep an eye on your credit score for any unusual activity. Identity theft is extremely prevalent, and a criminal can quickly drag your credit score through the mud with fraudulent accounts and purchases.
Rachelle Wilber is a freelance writer living in the San Diego, California area. She graduated from San Diego State University with her Bachelor's Degree in Journalism and Media Studies. She tries to find an interest in all topics and themes, which prompts her writing. When she isn't on her porch writing in the sun, you can find her shopping, at the beach, or at the gym. Follow her on Twitter @RachelleWilber