Like getting a loan for a home or anything else, your credit history could affect your ability to obtain a loan. Every consumer is entitled to a free credit report each year. Pull the report and check it yourself before you apply for the loan. Make sure everything on the report is yours and dispute anything that looks questionable.
If this is your first car loan you’ll need to determine how much you can afford to spend on a car each month. That will obviously dictate the type of car you buy. If you’ve got an expensive car in mind, make sure you can afford it before going through the trouble of trying to get the loan.
Along with your monthly car allotment, you’ll need to know how much you’ll be paying for insurance. Age, accident and ticket history, and how much you insure it for affect the price. Also, teenage male drivers are significantly more expensive to insure, so keep that in mind.
Down Payment or Trade In
As with purchasing a home, it’s good to have a down payment to put toward your loan. It also increases your chances of getting a loan at a good interest rate. If you have a vehicle to trade in, that will make your loan value lower. This should be factored into your budget, so make sure you know ahead of time how much you will get for the vehicle.
If you’ve got further questions about obtaining a car loan, simply contact one of our friendly INSOUTH Bankers!
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