Preparing to Buy a Car? Do You Know What Loan You Can Get With Your Credit Score?
With the slowed economy car dealers are really working hard to earn your business. Low sticker prices, excellent financing options and not to mentioned top notch, attentive service – dealerships are stepping up their game in order to attract customers.
So, you’ve decided now is the right time to buy. Here are a few pointers to help you navigate your way to a successful purchase.
First, know your goals. If your main priority is to find the right model to accommodate your growing family your shopping strategy might be different than someone looking for maximum fuel efficiency. By identifying your goals, you can narrow down the field and focus your efforts. Once you have a clearer idea of what you are looking for, do your research. There are a variety of websites that allow you to comparison shop different makes and models.
After you have thoroughly checked out the options online you may be tempted to rush out the door and head to the dealership for a test drive. Not so fast. The next thing you will need to do is sit down and factor your new car purchase into your monthly budget. Many people agree to less than ideal financing terms in the heat of the car buying moment, only to later realize that they could have found a better deal. Calculate how much you can comfortably put down and how much you would like to pay each month.
Then you will need to check your credit report. This will allow you to preview the information before the financing department gets their hands on it. You should make sure everything is correct and take into consideration how any negative items might affect your financing. Checking your report is easy and free, but it can really save you some big bucks in the long run.
If everything looks good, then you are ready to head to the dealer and pick out which color you like best!
See your credit score for free, and find out what kind of loan you qualify to receive. See where you stand on the credit score scale and how you compare to the national average.
Average Credit Score Means Above Average Car Loan Opportunities
You need to replace your old car with something newer, more reliable, or a car that just plain looks better than what you’re driving now. Chances are, you’ll need auto financing to make that purchase. Your credit falls into the range of average to better-than-average and you’re worrying about how good a car loan you can get for your current financial situation. Relax. If your credit rating is average, you are one in a vast majority of new car buyers and your chances of finding a car loan that fits your budget are very good.
Only about 1 in 10 car buyers fit into the perfect credit category and if lenders had to rely on this demographic for making car loans, they’d go out of business real fast. Average is what it is — it describes most of us and “most of us” is a big marketing target. What lenders can count on from people with average to good credit is reliability in making good on a debt. Seeing that people with average to above average credit are a good risk, most lenders will offer good car loan deals.
So what is an average credit score? The range for average credit scores is from 650 to 700 and usually qualifies people for car loans with good terms at reasonable, even low, interest rates. To find out your credit score, you can turn to the web. There are many sites where you can access your credit score for free as well as obtaining a copy of your credit report — another free service! It’s a good idea to learn your credit score as well as finding out what’s on your credit report. Even though your credit report is an official financial document, it can contain inaccuracies and omissions in your credit history which you need to correct as it can impact your ability to get financing on a home or car loan.
If you have perfect credit, your in a tiny minority among car shoppers and your path to a great car loan is almost guaranteed. If you’re in that great big average group, there’s no need to worry. You are the consumer that the vast majority of lenders are looking for and you have a ton of options available to you when it comes to finding the right car loan. For you, it’s a buyer’s market and there are ample shopping opportunities to make getting that new car as painless as possible.
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