You should always thoroughly prepare when buying a car. Know your credit score and report, payment range and what you are looking for before applying for a car loan. Make a list of questions you may have and items to take with you when you begin your new car search.
Employment
Lenders want to see that you have a job with sufficient income to make the payments and afford your other living expenses. They generally look for a monthly income of $1,600 or more and that you have been with your current employer for at least six months.
Driver's License
If you are the purchaser and you are applying for a car loan, you will need a driver's license. You can have the best credit in the world, but without a driver's license, that car you love will remain on the lot. If you are paying in cash, a state identification will suffice. You will need a driver's license to obtain automotive insurance, so it is in your best interest to get it before you even start the process.
Credit Score
To take advantage of the low interest rates that are advertised, in most cases you need a credit score of 680 or above. You will more than likely pay a higher interest rate if your score is between 600 and 680. Finding a lender willing to finance you with a score between 550 and 600 is quite difficult. With a score below 550, you may not qualify for a car loan. Remember that lenders are different and have their own set of qualifications; ask what they are before you apply.
0 comments:
Post a Comment