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Tips for getting a great car loan

Key to getting a car loan #1 - Review your credit


One of the first things you should do when considering to get a car loan is to review your credit. Check with a credit reporting agency to get a copy of your credit report. Look for mistakes and if you should have any negative items that are yours (or not), contact the creditors to see if the problem can be corrected. Also find out your FICO scores. Knowing your score can help you estimate the rate you will receive and help with budgeting.

Key to getting a car loan #2 - Create a budget

You may qualify for a large car loan, but you may find later it is too much of a burden. A little time preparing a budget can prevent you grief down the line. Keep in mind, mariage, divorce, births and deaths, and a million other factors, can change your financial situation.

Key to getting a car loan #3 - Avoid prepayment penalties

Read the fine print and look for prepayment penalties. You may want to sell the car before the end of the loan. If your credit situation changes during the term of your car loan, you may be able to refinance to a better rate. Don't get locked in.

Key to getting a car loan #4 - Shop around

Get competitive rates and terms from several auto lenders. Don't shop a car loan and a home loan at the same time. The credit agencies' scoring models allow you to shop for one type of loan (car, home or other financing). Just don't over do it.



See the lenders at the top of this page and get a car loan today