4 Simple steps to get Auto loan Quickly
When you are looking to buy a car , first thing comes in mind is finance, How to get auto loan as that seems most daunting process, So here are we to guide folk to get car loan quickly in 4 easy steps.
1. Check your Credit Score
Credit score plays vital role while applying for any auto loan but if you are first time buyer you may not realise how much important is it to have good credit score as people with great credit score eligible for good amount of loan at cheaper interest rate which saves your money.
What is credit score?
Credit score is typically a score based on your credit report which calculated on the basis of few activities like how likely you repay debt, how often you make payment on time and how many bank accounts you have with good outstanding balance.
Banks use this information to decide whether you are eligible for loan or not.
Having a good credit score is important to get qualify for a loan easily at lowest interest rates.
How is Credit score calculated?
Your credit score is 3 digit number calculated by two major credit agencies, One is FICO well known company measures Credit score developed by FAIR ISAAC CORPORATION other one is Vanture Score developed by joint venture of 3 credit reporting agencies: Experian, Equifax & Transunion.
Both FICO and Vantage Score ranges from 300-850.
What is a good FICO Score?
|CREDIT SCORE||RESULT / Possible for pre-qualified loan|
|800-850||Excellent / Very high|
|740-799||Very Good/ High|
|670-739||Good / Average|
|580-669||Fair / below Average|
|>580||Poor / Low|
|0 or 350||No-Credit / Very low
Tips to improve credit score
2. Analyse Budget
When you applying for any auto loan, you must analyse the amount you can afford or willing to pay installment every month. The more money you pay as down payment less amount you’ll finance which ultimately decrease your monthly installment.
Thus take a look on your budget to figure out monthly payment you can afford.
3. Get Pre-Approved or Pre-Qualified
Before buying a car, its better to get pre-approved car loan, for which you need to checkout all websites providing auto loans and pickup best deal offering to you by comparing interest rate, credit amount, monthly installment etc by Auto loan providers.
If you have bad credit score you may still have chances to get pre-approved for Auto loan but with high interest rate.
4. Choose your desired Car
Once you pre-approved for your car, you no need to worry now just buy desire car online at best price near your location and close the deal.