Your credit history not only affects whether or not you get the okay on a car loan, but it also determines the interest rate you pay on the loan, as well. Even if you’re lucky enough to have a stable income and long history of steady employment, mistakes from a past life could still come back to haunt you. But, a poor credit score doesn’t mean you won’t be able to get a new set of wheels, you may just need to put in a little more effort to do so. Here are a few tips that could help you get approved, and save money too, on your next auto loan.
Check Your Credit Report
Start the process a few months before you visit the dealer by checking your credit report and score. Lenders consider seven-hundred and fifty and above as excellent, 700 – 749 as good, 650 – 699 as fair, and any score below 650 as poor. Look for errors in the report and take the time to file a dispute with the reporting agency. Also, if possible, pay off any outstanding debt, especially if you’ve been late on any of the loan’s payments.
Don’t Add Fuel to the Fire
Make sure to pay everything on time in the months leading up to your loan application. Also, try not to take on any additional obligations such as a new credit card, store card, or make any significant purchases against an existing card.
Watch the Current Rates
Just as you want the best deal on your next ride, you should also feel confident that you made the best deal possible on your loan. Depending on the amount that you finance and the number of payments, lowering your rate by just a half-point could save thousands over the life of the loan.
One last tip – with their expert financial specialists and a huge selection of cars, trucks, and SUVs, Auction Direct USA can get you in the vehicle you want today and on the road to good credit, as well.