One of the most important aspects of buying the used car of your dreams is finding it at a very fair price that you can afford – which is becoming easier and easier thanks to all of the used car loan services that are available today.
At the exact same time, you still need to be pretty smart and savvy about the particular used car loan you decide to take out. This is not the kind of decision that can be entered into lightly, and is going to represent one of the bigger financial commitments you decide to make.
According to some statistics, the number one “wrecking ball” as far as credit scores are concerned happens to be used car loans that people took out that they were not able to meet – biting off for more than they could chew as far as a financial obligation was concerned.
Hopefully you won’t run into this issue, and the information included below gives you the inside info you need moving forward!
Research your credit score before shopping for a used car loan
The first thing that you’re going to want to do when searching for a used car loan has absolutely nothing whatsoever to do with the actual used car itself, any dealership, or even any of the lenders that you are considering – and everything to do with your particular credit score.
Your credit score is going to determine just about everything as far as the particular used car loan you can get is concerned, which is why you’ll want to make sure that everything is exactly as it should be and that your credit score is as high as possible.
You are entitled to three free credit reports every single year, and it’s vital that you use these reports to make sure that your credit report is accurate, your credit score is valid, and there are no errors or omissions that could compromise your overall credit worthiness.
You’ll also want to check the credit score of the service that your lender or dealership is using, as the three different credit reporting services all use different scales to rate your credit worthiness.
Shop around different lenders like you would shop around different dealerships
The second phase that you’re going to want to pay attention to when you are looking for the right used car loan is to shop different lenders the same way that you would shop different dealerships before you purchase your used car.
Don’t just jump on the first lender that you come across, and certainly do not sign on the dotted line to any agreement whatsoever until you have investigated at least three other lenders – pitting one against another so that you get the best possible terms, the best possible rate, and the most possible money for your used car loan.
Only agree to terms you can meet and consider increasing your down payment to get better monthly rates
The last piece of the puzzle is making sure that the terms of your new used car loan meet your exact expectations and that everything you have bargain for or negotiated for our included in the contract.
This is a critical part of the process that too terribly many people overlook entirely, as they are more than willing to take people at there were and believe that they will fulfill the promises that they have made verbally.
Do not make this mistake.
If you have bargain for or negotiated for a specific term, you need to verify that it is included in the contract for your used car loan – or you cannot sign that document. This is a step that cannot be avoided or ignored.