Buying a new car can be one of the most exciting things that you can do in your life. Your car reflects who you are, what you represent, and what you believe in. It may seem a little far fetched but take a second to think about it. A person driving a death trap that barely runs is in a position in life where they are struggling. Someone driving a small EV will be conscious about the environment, and the damage that we all do to it. If you prefer to drive a muscle car built to the max, you are an adrenaline junky that others should not mess with.
Finding the perfect car to match yourself is only part of the battle. Once you do find a car, you will need to get a car loan that will cover the cost, or at least most of the cost. It is important to remember, though, that you want to shop around for a car loan. Do not ever take the first offer that you see. You want to find the best lender that gives you the best offer, including the amount of interest that they will be charging you.
Comparing is not the only aspect of the process that you need to be aware of. There are some steps that you should take before you even attempt to get a loan. Long before in some cases. Let us take a look at some things that you may need to work on.
Your credit score is one of the most important things in the process. It is a number that you carry your entire life, and it should be something that you concentrate on starting at the earliest age possible. This number is derived from your payment history, how many credit accounts you have open, how much of the credit amounts you have used, and how stable you are. The majority of the car loans that you apply for will require a number in the mid-600s, with over 700 giving you the best rates. There are applications available on your mobile device that will help you keep track of your number, as well as give you advice on how to increase it.
The technological age that we are in gives us many benefits, including the ability to research companies online. Go to an online company that will compare car loans for you. All you will have to do from there is check through the offers that come up and compare them against each other. When doing this keep one thing in mind. The lowest rate offered may not be the best. You need to read through the entire offer and compare every aspect of it. For example, a company may offer you a loan at 5% interest, but it may be monthly. It may also require that you pay half down on the car out of your own pocket. Make sure you check every aspect of the loan before committing to any of them.
Two weeks is a magic number that you need to keep in mind. Your FICO score, which is the main way that a lender will check for your credit worthiness, will take points off every time that you apply for one. The good thing is that you can apply for multiple loans within a 14-day period, and it will be considered to be one transaction. This means that you can apply for one loan, or ten loans, and as long as they are all within a two-week window you will only lose points one time.
It has been covered earlier about how important it is to read through the entire offer, but this needs to be discussed again because it is an especially important aspect of any contract. You need to read the entire offer, including all of the fine print. The small print, and the riders and exclusions, will make a significant impact upon the loan that you get. For example, the lender may offer you an excellent rate and more than enough money to buy the car you want, but it may exclude the car that you want. In other words, the loan may stipulate that you must buy an economical car, not the muscle car in which you are interested.
As you can see, it is important to plan ahead. The sooner that you start working on your credit, the better off you will be. It is also a good idea to do some research on the type of car that you want to get. A quick internet search will give you tons of websites giving good and bad details. If it is newer than a 2000 model go to consumer reports and get a detailed breakdown of your car.
And for the final piece of advice, it is important to reiterate on how important it is to compare offers and read through them completely. Now it is time to get out there and get the car of your dreams, one that reflects who you are.
Photo is from pixabay
Guest Author Bio
My name is Samantha Waites who loves to find out about new things. I try to cover as many topics as I can and offer my readers the chance to find out useful and interesting things as often as possible. I consider writing to be my strongest skill and I am very fortunate to be able to work with a team of talented and passionate writers at my side every day.