Advantages of Pre-Approved Car Loans
Windowofworld.com – You can buy yourself a lot of flexibility and savings by getting pre-approved for a car loan before you shop. Consider the following benefits:
1. Pre-approval puts you in the driver’s seat. When you know how much and what terms you can expect with your loan, you eliminate dealer financing costs and confusion.
2. You don’t have to sacrifice dealer rebates and / or discounts to get a lower interest rate because your loan has been pre-approved.
3. You will know how many cars are eligible before you even visit the dealer.
4. You don’t have to pay a large down payment.
5. You only need to deal with one problem at a time, money, then the car. Car dealers are trained to come to an agreement by getting you so passionate about the car that you ignore good excuses and judgment during the application / negotiation phase. Don’t let this happen to you.
Getting pre-approved for a car loan is quick, easy and simple (in most cases you can expect an answer in just a day or two) but there are important steps you shouldn’t skip.
Know your credit history
As with all loans, rates and terms vary. You can get an overview of what terms you can expect, or even if you will qualify for a loan if you are familiar with the information contained in your credit report and score. Your credit score is an objective number used by creditors to determine your creditworthiness. Generally, those with higher scores do better when it comes to interest rates. Credit scores range from about 300 to 850. If your score is above 600, you may qualify for a car loan. A minimum score of 720 qualifies for the best rate. Visit bankrate.com to learn what rates are currently offered by lenders based on credit scores.
Complete the application
You have several options for getting a pre-approved car loan (nominal filing fees may apply).
1. You can complete and submit the application contained in the loan informational brochure provided by your bank or credit union.
2. You can also visit your financial institution’s website and complete an online application.
3. You can even pick up the phone. Some financial institutions have extended service hours that allow you to call from your home or showroom to get pre-approved for your car loan.
4. You can select / qualify for 100% financing, including tax, tag and ownership fees.
5. You can search the Internet for financial institutions with which you are not currently connected to learn about available options.
If you choose to make an online application, and especially if you don’t know a potential lender, be sure to proceed with caution to avoid unpleasant results. Identity theft and fraud are always top of the line; protect your credit and personal information at all times.
And don’t worry, a pre-approval doesn’t mean you’ve signed on the dotted line. It only helps you plan the best option available to you. If you change your mind, you are not obliged to take out a loan. You can’t lose.