When looking for ways to repair your credit, you may have not considered an auto loan as the first step towards that goal. It may not seem like it makes a lot of sense, since a vehicle is a big purchase, and the chances of being approved seem like they would be very low. But the fact remains that sometimes you simply cannot wait to improve your credit rating before making a vehicle purchase. When you are dealing with an unreliable vehicle, you run the risk of either losing the job you have, or are severely hurting your chances of finding a better one.
Here are the basic qualifications and requirements that greatly improve a person’s chance of getting pre-approved for a car loan.
Although more lenders are increasingly willing to work with credit-challenged borrowers, most are balancing this by requiring that borrowers have actual equity (cash down, trade equity) in these loans.
Having the right amount of money to put towards a down payment is very important. It may be the one thing that determines whether you can get approved for the right kind of car loan. Of course, it also helps to be working with the right lender.
When you have completed or are in the process of a divorce, you will find many aspects of your life changed, including your finances. And, for some, this could mean that it will be tougher to find an auto loan. You may discover that your individual income no longer qualifies you for the type of car you are used to driving, as well as the fact that your credit rating may be affected too.
A recent survey revealed that 7 out of 10 U.S. consumers who have taken out an auto loan aren’t aware of the total amount of interest they paid on it. That needs to end.
When you start your search for a vehicle by selecting what you want first, you are already putting yourself at a disadvantage. In situations where you not only need a car, but need it fast, and have a challenging financial background, having to jump from dealer to dealer isn’t ideal.